Citi Hosts Vietnam Day to Enhance Economic Collaboration

Citi recently hosted a pivotal event, Vietnam Day, aimed specifically at its Hong Kong clients, emphasizing the growing economic collaboration between the two regions. The event featured key insights from prominent Citi figures including Minh Ngo, head of markets and country treasurer for Citi Vietnam, as well as Charles Lam, head of markets in Hong Kong, and Vivian So, head of corporate FX in Hong Kong.

Remarkable Growth in Client Activities

During the discussions, the Citi leaders highlighted that client-related activities within their trade corridor have shown remarkable growth, surging over 10% in 2024 compared to the previous year. This upswing reflects the increasing importance of the Vietnam-Hong Kong partnership in international trade.

Introduction of Digitalized FX Execution Platforms

A central focus of the event was the introduction of Citi's state-of-the-art digitalized foreign exchange (FX) execution platforms. These tools are designed to assist clients in managing their hedging strategies effectively, especially as trade flows between Vietnam and Hong Kong continue to rise.

Foreign Direct Investment Insights

Recent statistics from CEIC and Citi Research showcase Vietnam as a major beneficiary of foreign direct investment (FDI) from China and Hong Kong, capturing between 25-30% of total FDI into the country in 2023. Notably, Hong Kong contributed approximately 15% of this investment last year, which fell slightly to 13% thus far in 2024. This trend reinforces Hong Kong's strategic economic role in supporting Vietnam's growth trajectory.

Future Growth Predictions

Experts predict that the influx of investments from Hong Kong will only increase in the next three to five years, particularly as Vietnam becomes a preferred destination for supply chain relocations, especially in the burgeoning electronics sector. This shift is part of a broader trend where companies seek to diversify their manufacturing bases in response to global market fluctuations.

Significance of Ongoing Collaboration

Ngo remarked on the significance of the event, stating, “This gathering underscores the robust economic ties between Vietnam and Hong Kong, showcasing the potential for ongoing collaboration and sustained growth. As more businesses from Hong Kong journey into the Vietnamese market, Citi stands ready to provide an extensive array of services including capital raising, merger and acquisition advisory, trade and supply chain finance, cash management, FX/rates, commodities hedging, and bespoke funding options tailored to meet our clients' evolving needs in Vietnam.”

Hong Kong's Strategic Economic Position

Further emphasizing their commitment, Lam highlighted Hong Kong's strategic position as a gateway to Southeast Asia, noting that Vietnam ranks as its seventh-largest trading partner and retains a critical role as the fifth-largest source of foreign investment in the region.

Promising Future for Businesses

With growing economic ties and advanced digital infrastructure in place, these developments signal a promising future for Hong Kong businesses looking to expand into Vietnam, all backed by Citi's comprehensive banking solutions that promise to empower clients in navigating this evolving landscape confidently.

Stay tuned for more updates on this dynamic economic relationship!