HSBC has obtained official approval from the State Bank of Vietnam (SBV) to set up a Wholly Foreign Owned Bank (WFOB) in Vietnam, the Bank said last week.

Thomas Tobin, CEO of HSBC in Vietnam, said: “We continue to increase our participation in Vietnam’s economy and financial markets, and I am very glad to see that our commitment to the development of the financial sector has been recognised and supported by the authorities. This is a clear sign of the government’s strong commitment to the WTO and their recognition of the importance of a strong financial sector.

“We aim to start operating through our new local entity as early as possible and will actively work with authorities to complete the necessary business registration activities in the coming months. We hope to become the first foreign bank to operate a fully owned local entity in the fast-growing Vietnamese banking sector and look forward to opening a new chapter in HSBC’s history in Vietnam,” he said in a press release.

Upon local incorporation, the new entity, HSBC Bank (Vietnam) Limited, will be headquartered in Ho Chi Minh City and will be 100 % by The Hongkong and Shanghai Banking Corporation Limited, the founding and a principal member of the HSBC Group.

The HSBC Group is one of the world's largest banking and financial services organisations. Thomas Tobin, President and CEO of HSBC’s current operations in Vietnam, will be appointed President and CEO of the locally incorporated entity.