Jake Miller
Several large American banks operate in Vietnam, mainly in the country's two major urban centres. Citibank, Far East National Bank, Wells Fargo, Visa International, and JP Morgan Chase all have a presence in Vietnam, with some having both branches and representative offices. Additionally, non-residents can open bank accounts with American banks in Vietnam, provided they meet the bank's account opening requirements and have a suitable client profile.
| Characteristics | Values |
|---|---|
| Number of U.S. banks and financial institutions operating in Vietnam | 5 |
| U.S. banks with branches in Vietnam | Citibank, Far East National Bank, JP Morgan Chase |
| U.S. banks with representative offices in Vietnam | Wells Fargo, Visa International |
| U.S. banks with investment branches in Vietnam | JP Morgan Chase |
| Requirements for non-residents to open bank accounts with American banks in Vietnam | Meeting account opening requirements and having a suitable client profile |
| Requirements for U.S. citizens to open bank accounts in Vietnam | Having a visa for 12 months or longer |
| Non-American foreign banks operating in Vietnam | RBC, HSBC |
| Vietnamese banks with active relationships with U.S. banks | Vietcombank, Vietinbank, Bank for Agriculture, Bank for Investment and Development |
| Vietnamese joint-stock banks with correspondent relationships with U.S. banks | Asian Commercial Bank (ACB), East Asia Bank (EAB), Vietnam Export-Import Bank (EXIM Bank) |
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What You'll Learn
- Citibank ceased operations in Vietnam in 2022
- Non-residents can open bank accounts with American banks in Vietnam
- Several large American banks maintain operations in Vietnam's two major urban centres
- The State Bank of Vietnam is the country's main financial regulatory agency
- U.S. firms exporting to Vietnam conduct business using letters of credit, drafts, and wire transfers
Citibank ceased operations in Vietnam in 2022
Citibank has had a long history in Vietnam, dating back to before 1975 when it first set up a representative office in Hanoi. Over the years, Citibank expanded its offerings in Vietnam, including corporate and investment banking, capital markets, and transactional banking services. In 2009, Citi established its retail banking franchise in the country, and its business grew rapidly, with market share gains in credit cards, personal loans, cash withdrawals, and insurance. Citibank Vietnam was even awarded the title of "Digital Bank of the Year" by The Asset Asian Awards in 2021.
However, in January 2022, Citigroup announced that it would sell its consumer banking businesses in Vietnam, along with Malaysia, Thailand, and Indonesia, to the United Overseas Bank of Singapore (UOB). This decision marked a shift in Citigroup's strategy and a transition away from its consumer banking operations in these countries. As a result of this sale, Citibank ceased its physical operations in Vietnam, and by late 2023, all Citibank ATMs were physically removed from the country.
While Citibank's presence as a physical bank in Vietnam has come to an end, the impact of its departure goes beyond the closure of branches. The sale of Citibank's consumer banking business to UOB included the transfer of customer accounts. This transition process may have caused disruptions and inconveniences for Citibank customers in Vietnam, who had to adapt to new banking systems and processes. Additionally, the departure of Citibank, one of the prominent American banks in Vietnam, could have potentially left a void in the country's banking landscape, at least in the short term.
It is worth noting that while Citibank's physical operations have ceased in Vietnam, the country still has several American banks and financial institutions operating within its borders. According to sources, there are at least five U.S. banks with a presence in Vietnam, including Wells Fargo and Visa International, which have representative offices, and JP Morgan Chase, which has both a branch and a representative office. Additionally, non-resident foreigners can open bank accounts with American banks in Vietnam, provided they meet the bank's account opening requirements and have a suitable client profile.
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Non-residents can open bank accounts with American banks in Vietnam
Several large American banks have maintained operations in Vietnam for many years, with a presence in the country's two major urban centres: Hanoi and Ho Chi Minh City. Citibank and Far East National Bank have branches in Vietnam, while Wells Fargo and Visa International have representative offices. JP Morgan Chase has both a branch and a representative office.
However, it is important to note that the Vietnamese government has been closing loopholes that allowed foreigners working illegally to deposit funds in Vietnamese banks. Therefore, non-residents will need a full set of paperwork showing their legal residence status and, often, the source of any funds being deposited.
Some banks in Vietnam allow customers to create an account online, provided they have the correct documents. International banks like HSBC and Citibank have a strong presence in major cities, so it may be possible to link an existing account with these banks to their Vietnamese branches.
Additionally, non-residents may want to consider opening an offshore bank account in Hong Kong, Singapore, or Malaysia, depending on their specific needs and requirements.
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Several large American banks maintain operations in Vietnam's two major urban centres
Several large American banks maintain a presence in Vietnam's two biggest cities. While Citibank ceased operations in the country in 2022, other U.S. banks such as Far East National Bank, Wells Fargo, Visa International, and JP Morgan Chase have established branches or representative offices in Vietnam. These banks are primarily located in the country's two major urban centres.
Non-residents can open bank accounts with American banks in Vietnam, provided they meet the bank's account opening requirements and have a suitable client profile. It is beneficial for individuals who frequently send and receive money locally to have a bank account in Vietnam. This includes individuals who have clients or suppliers in Vietnam and need to manage payments efficiently.
To open a bank account in Vietnam as a foreigner, it is necessary to find a bank that caters to non-residents, schedule an appointment, and provide the required documentation. It is important to carefully research the various banks as they often have opaque fee structures with potentially high charges.
The State Bank of Vietnam (SBV) serves as the country's central bank and primary financial regulatory agency. It oversees a range of financial institutions, including state-owned commercial banks, joint-stock banks, and foreign bank branches and representative offices. The SBV is working towards enhancing the regulatory framework and increasing transparency in the banking sector.
While there are American banks operating in Vietnam, it is worth noting that some U.S. firms exporting to Vietnam prefer to use alternative payment methods such as letters of credit, drafts, and wire transfers. Vietnamese companies sometimes resist using confirmed letters of credit due to the associated costs and collateral requirements.
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The State Bank of Vietnam is the country's main financial regulatory agency
The State Bank of Vietnam (SBV) is the country's central bank and main financial regulatory agency. It is organised as a ministry-level body under the Government of Vietnam and is the sole issuer of the national currency, the Vietnamese dong. The SBV regulates banks and other credit institutions, including finance companies, financial leasing companies, and microfinance institutions. It is responsible for granting licenses for the establishment and operation of banks in Vietnam, issuing guidance for banking activities, and supervising the banking system.
The SBV's role has evolved over time. During the Đổi Mới liberalisation era, Vietnam's banking system underwent reforms, and the State Bank's functions were narrowed to that of a central bank. Today, while it continues to lend to state-owned enterprises, it has been largely superseded in this respect by other state-owned banks and private banks.
Several large American banks maintain operations in Vietnam, particularly in the two major urban centres. Citibank and Far East National Bank have branches, Wells Fargo and Visa International have representative offices, and JP Morgan Chase has both a branch and a representative office. Most state-owned banks in Vietnam, such as Vietcombank and Vietinbank, also have active relationships with U.S. banks.
Non-residents can open bank accounts with American banks in Vietnam, provided they meet the bank's account opening requirements and have a suitable client profile. However, it is important to note that Citibank, which previously operated in Vietnam, sold its SEA operations and ceased its presence in the country in 2022.
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U.S. firms exporting to Vietnam conduct business using letters of credit, drafts, and wire transfers
There are a few American banks operating in Vietnam, including Citibank (which ceased operations in 2022), Far East National Bank, Wells Fargo, Visa International, and JP Morgan Chase. However, it's worth noting that some of these may only have investment branches and not full-service banks. Several large American banks maintain operations in Vietnam, typically in the two major urban centres.
When it comes to US firms exporting to Vietnam, there are various methods of payment used, including letters of credit (L/Cs), drafts, and wire transfers. Letters of credit are often used to protect the interests of both the buyer and the seller, ensuring that payment is made upon presentation of documents conveying the title and showing that specific steps have been taken. These letters of credit can be irrevocable, meaning they cannot be changed unless both parties agree, or revocable, where either party can make unilateral changes. However, revocable letters of credit carry more risk for the exporter.
Drafts, also known as documentary collections, are similar to letters of credit in that they require the presentation of specific documents before goods are released. There are two types of drafts: sight drafts, which are paid immediately, and time drafts or date drafts, which are paid at a later date, often after the buyer has received the goods.
Wire transfers can be used to expedite the receipt of funds, and Vietnamese companies may prefer this method due to the additional cost and collateral requirements associated with confirmed letters of credit.
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Frequently asked questions
Yes, several large American banks maintain operations in Vietnam, particularly in the two major urban centres.
Citibank, Far East National Bank, Wells Fargo, Visa International, and JP Morgan Chase.
Yes, non-residents can open bank accounts with American banks in Vietnam as long as they meet the bank's account opening requirements and have a suitable client profile.
Banks in Vietnam often have opaque fee structures and high fees, so it is important to carefully research all banks before choosing one. Other things to look out for include attractive interest rates for liability accounts and the ability to send and receive money overseas quickly and inexpensively.
Alternatives to banking in Vietnam include opening a bank account in Hong Kong, Singapore, or Malaysia.
