Deutsche Bank announced it is investing further into Vietnam to support higher trade flows from Europe, which are expected to increase following the recently ratified EU-Vietnam Free Trade Agreement (FTA).
Already Vietnam is a significant trade partner for Germany, with annual trade of around 14 billion Euros, and the second largest trade partner in ASEAN.
Deutsche Bank research shows that foreign direct investment (FDI) into Vietnam has doubled in the past five years.
Deutsche Bank Vietnam Chief Country Officer Hans-Dieter Holtzmann said: “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 for 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.
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 & Non Deliverable Forward capabilities on our Autobahn platform. This will allow our onshore and offshore clients to hedge their local currency exposure,” Holtzmann added.
In addition to introducing its enhanced FX platform, the bank is also extending FX API technology to local clients who will be able to connect their own direct sales eCommerce infrastructure to the bank’s platform, while being supported with pre and post-trade activities.
Globally, Deutsche Bank most often sees API used by clients to expand their own B2B and B2C sales offering by introducing a wider range of currencies for online transactions. This solution gives end customers more choice 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 corporates and financial institutions, ranging from cash management, FX, custody and trade finance.
For further information, please contact:
Deutsche Bank AG
Phone: +65 6432 8413
About Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
This press release has been approved and/or communicated by Deutsche Bank AG or by its subsidiaries and/or affiliates (“DB”). Deutsche Bank AG is authorized under German Banking Law (competent authority: BaFin - Federal Financial Supervisory Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorization and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request. Securities and investment banking activities in the United States are performed by Deutsche Bank Securities Inc., member NYSE, NASD and SIPC, and its broker-dealer affiliates. Lending and other commercial banking activities in the United States are performed by Deutsche Bank AG, and its banking affiliates. Copyright (C) 2019 Deutsche Bank AG. Deutsche Bank Aktiengesellschaft (Incorporated in the Federal Republic of Germany & members’ liability is limited).