Letter of Acceptance from State Bank of Vietnam to be presented in Washington D.C.
Citi is expected to receive an official Letter of Acceptance (in principle) from State Bank of Vietnam Governor Nguyen Van Binh for the bank’s plans to set up a local subsidiary in Vietnam, at a signing ceremony at the US Chamber of Commerce in Washington D.C. on July 8 (local time).
Ms. Natasha Ansell, Citi Vietnam’s Country Officer, said that the US-based global bank with operations in over 100 countries had expressed its intentions to the State Bank to seek a license to operate as a wholly-owned subsidiary in the country in light of the country’s economic progress.
“We believe that the new structure we will apply will foster Citi’s contribution and development to Vietnam’s banking industry as well as consolidate and strengthen our operational platform to further support local and international clients of Citi in Vietnam,” she said.
Party General Secretary Nguyen Phu Trong is planning to attend the event, along with other high-ranking officials and business leaders from the two countries. The Letter of Acceptance comes at a time when Vietnam and the US are marking the 20th anniversary of diplomatic relations and the visit by General Secretary Trong to the country.
The bank plans to submit relevant requests for approval to regulators in due course, including the required approval from regulators in the US. Any transaction will also need to be submitted to Citibank’s Board of Directors.
Citi operated in Vietnam as First National City Bank in 1972-1975 and resumed its business in 1993 with a representative office in Hanoi. It was the first US bank licensed to open a branch with full services, in Hanoi in 1994, followed by a second in Ho Chi Minh City in 1998. With more than 700 employees, Citi offers a wide range of banking services including corporate and investment banking, treasury and trade services, market and securities services, and consumer and commercial banking.