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Deutsche Bank to support Vietnamese cross-border trade
By Le Hoang
Thursday,  Mar 5, 2020,15:51 (GMT+7)

Deutsche Bank to support Vietnamese cross-border trade

By Le Hoang

Hans-Dieter Holtzmann, Deutsche Bank Vietnam Chief Country Officer

HCMC - Deutsche Bank on March 4 announced it is investing further in Vietnam to support larger trade flows from Europe, which are expected to increase following the recently ratified EU-Vietnam Free Trade Agreement.

Deutsche Bank’s research indicates that foreign direct investment (FDI) in Vietnam has doubled in the past five years. Vietnam is a significant trade partner for Germany, with annual trade of some EUR14 billion, and the second largest trade partner in the ASEAN.

Deutsche Bank Vietnam Chief Country Officer Hans-Dieter Holtzmann noted in a statement: “The rise in FDI can be attributed to more foreign companies investing in supply chains in Vietnam to support intra-Asian trade. With supply chains facilitating more trade, we are clearly seeing more demand for both inbound and outbound Vietnamese dong (VND) currency payments.”

As a result, the bank is investing to enhance the digital capabilities of its award-winning FX platforms to cater to the higher demand for local currency settlement. Late last year, Deutsche Bank added the restricted Vietnamese dong to its FX4Cash platform, which offers more than 130 currency pairs globally.

“More corporate clients are choosing to settle payments in local VND rather than USD to better manage the costs of currency conversion, but this also requires local currency risk management,” he added in the statement.

As more clients trade and settle in local currency, there is also a greater demand for hedging currency exposure. The development of Vietnam’s non-deliverables forward (NDF) market is providing clients with an avenue to hedge their Vietnamese dong exposure.

“This year we are seeing more liquidity in the NDF market, so we are expanding our VND deliverable and NDF capabilities on our Autobahn platform. This will allow our onshore and offshore clients to hedge their local currency exposure,” Holtzmann remarked.

In addition to introducing its enhanced FX platform, the bank is extending FX API technology to local clients who will be able to connect their own direct sales e-commerce infrastructure to the bank’s platform, while being supported with pre- and post-trade activities.

Globally, the leading German bank often sees APIs being used by clients to expand their own B2B and B2C sales offerings by introducing a wider range of currencies for online transactions. This solution gives end customers more choices around payment currencies to hedge against currency movements.

Deutsche Bank has operated in Vietnam since 1992, providing banking and financing solutions to multinationals, large local corporations and financial institutions, ranging from cash management and FX to custody and trade finance.

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