First and foremost
HSBC has just received an internationally-recognised award, “Best Foreign Bank in Vietnam
2006”, by FinanceAsia. What were the selection criteria for the award?
FinanceAsia selected the award winners on the basis of their financial strength and performance, the
value of the franchise, acquisitions that help improve the franchise, staff numbers, client base, major
deals won during the period, and testimonials from clients. We would particularly like to thank our
customers, who set aside their valuable time to write strong testimonials that helped HSBC gain credit
in the decision making process. I believe our long-term commitment to Vietnam also played an
important role in the selection process.
We are very proud to be named Best Bank in Vietnam by FinanceAsia, one of the most reputable
financial publishing houses in Asia. The award reflects our relentless efforts in providing customers with
world-class services and we are delighted to see our position as the leading foreign bank in Vietnam
now being reaffirmed by the winning of this prestigious award. It is also worth mentioning that The Asian
Banker ranked HSBC at Number 2 in its scorecard for the Best Retail Bank in Vietnam 2006 Award,
and we are proud to be the only foreign bank in the top 3, despite our limited distribution network.
HSBC has also received international awards in securities services from other international
publications. Can you tell us more about these awards?
HSBC recently won the “Best Sub-Custodian Bank in Vietnam 2006” award from Asset Triple A. We
were also ranked Number 1 and - a first in Vietnam - received a Commended Rating from Global
Custodian Magazine’s market survey “Review of Agent Banks in Emerging Markets” in 2005. These
international industry awards reflect our leading position in securities services in Vietnam.
HSBC Vietnam was the first foreign bank to obtain a custodian licence in Vietnam. We are the only
foreign bank in the country that provides fund administration services, through a local team of eight
staff. Our focus is to bring international practice to the Vietnamese securities market and to provide
world-class services to our customers. Our competitive advantage lies in our consistency, reliability and
flexibility of services. In the first half of 2006 we installed a state-of-the-art custody system (HSBC’s
global securities system) to fully automate the processing of securities transactions. We will also soon
be launching HSBCnet, our global Internet banking platform, for securities customers in Vietnam.
We are very pleased to be able to establish good relationships with regulators to ensure we are able to
represent our clients’ interests. As the leading and most experienced sub-custodian bank in Vietnam,
HSBC has been frequently invited by regulators to share best practice from other international markets

and also give advice on the development of the securities market infrastructure. We are delighted that
our existing and potential customers recognise our efforts and, as a result, most major global custodian
banks, investment funds and broker dealers have appointed HSBC as their sub-custodian bank in
Vietnam.
HSBC is one of the most successful foreign banks in Vietnam in terms of growth, returns and
brand awareness. What major factors have contributed to the success of the bank?
I must say that HSBC’s successes to date can mainly be attributed to our people. By “people” I mean
our talented staff, who are dedicated, knowledgeable and professional, and consistently deliver superior
customer services. And, of course, a successful bank must have successful customers. HSBC is
fortunate to be able to establish “trusted partnerships” with our clients. With our intensive global network
coupled with our local roots and presence, HSBC is proud to say that we are in a position to provide our
clients with financial support as well as “connections for business success”, and this is where we excel.
“People” here also means other stakeholders, such as regulators, government authorities and also the
general public, who have been very supportive of us.
Without people we could not be as successful as we are to date. Last but not least, it is encouraging
that HSBC in Vietnam has received every possible support from our head office for our business plan in
Vietnam, a country that has been identified by HSBC as a priority market
We have learned that in September, HSBC Asia Pacific’s Board of Directors will gather here in
Vietnam to discuss the bank’s future strategy. Why Vietnam and not somewhere else? Does this
mean that Vietnam will play a role in the bank’s future plan? Are there any significant
developments in the local banking market that HSBC in planning for? What are they?
This is a formal meeting of our Board of Directors. Every year, a specific market is selected as the host
country for the meeting and the selection reflects the importance as well as the potential of the market.
This is a unique and special event for HSBC in Vietnam and highlights the focus on importance placed
on Vietnam by the HSBC Group. 2005 marked a successful year of our operations in Vietnam, both in
growth and returns. We opened the Hanoi branch in February and the Can Tho representative office in
May. In December we completed a transaction to acquire 10 per cent of the share capital of
Techcombank. We have doubled our market share among foreign banks in Vietnam during the last two
years and have maintained this momentum in 2006. Looking back on what HSBC in Vietnam has
achieved so far, and given the growth of Vietnam’s economy, it is clear that HSBC has made Vietnam a

priority country for future development.
It is said that HSBC recently proposed to the Techcombank board of management that it raise
its stake to 20 per cent from the current 10 per cent. Is this true? If yes, why now? If no, when
will HSBC make such a proposal to Techcombank?
Regulations limit the stake held by foreign banks in domestic financial institutions to 10 per cent. We are
interested in increasing our stake in Techcombank as and when regulations permit. Our priority now is
to implement the technical support agreements signed with Techcombank. Under these agreements we
will offer assistance on a range of areas, including risk management, corporate governance and internal
audit. The business co-operation agreement will allow both parties to actively explore business
opportunities in a wide range of areas within retail and corporate and commercial banking in Vietnam.
A consultant from HSBC Asia Pacific is now in place in Techcombank to provide guidance on corporate
governance and risk management. In addition, HSBC in Vietnam has seconded a senior executive to
Techcombank as Deputy General Director in charge of business development in the south of Vietnam.
We also formally assumed a seat on the board of Techcombank in August this year.
Our focus now is to work closely with Techcombank to bring our strategic partnership to a new height
for the benefit of both parties, and above all for the benefit of our customers.
What are the most important factors that foreign investors, especially those in the financial
sector like HSBC, consider when deciding to invest in Vietnam?
Vietnam has a number of factors in its favour, the most attractive being its emerging market status,
offering many business opportunities as well as obstacles. Although competition is beginning to mount,
there are plenty of opportunities for everyone. However, with our long history in Vietnam we should
have an advantage. Vietnamese people are also the country’s most valuable asset. Vietnam’s young,
educated, intelligent and eager to learn workforce has been the major driving force behind the recent
surge in foreign investment in Vietnam.
Another factor is the astonishing economic growth rate Vietnam has recorded in a relatively short period
of time since it embarked on market reform and liberalisation. Vietnam has now become one of the
fastest growing economies in Asia. These exciting developments will continue as Vietnam continues its
reform measures. Last but not least, the Vietnamese Government has sent a strong signal to the world
about its commitment to gradually open the door and integrate into the global economy. Vietnam’s
pending entry to the WTO is a good example. These efforts have helped build up investor confidence

when deciding to invest in Vietnam.
Human resources is a very interesting topic. The labour market in Vietnam has been heating up.
There is a shortage of skilled upper management people in the blossoming financial sector.
What has HSBC done to attract and retain the best talent?
At HSBC we strongly believe that people are fundamental to our business and its success. Our top
priority is to identify, retain and develop high potential talent, especially those who are local
Vietnamese. We currently have the largest and most diverse employee base in Vietnam. We have more
than 250 staff from nine countries, 95 per cent of whom are Vietnamese, and most of the senior
management positions are held by Vietnamese.
We do not adopt short term strategies for quick wins. We commit to sustainable growth in human
resources and have made great efforts in staff training and development. We have rolled out local,
overseas and on-line training courses to staff almost every week. In addition to training we have also
offered overseas attachment programs to executives and officers so that they can gain practical
experience and international exposure. And in order to prepare the next generation of leaders, we have
identified talent and sent them to the Management/Leadership Assessment Centre and Development
Programs. We have recently launched our Management Associate Program and Commercial Banking
Development Program to attract high calibre candidates for middle and senior management positions.
When working for HSBC, employees are offered clear career paths and a range of opportunities.
I am very proud of my team here in Vietnam, who own the success of the bank, and I believe that our
continued growth will create many opportunities for our talented staff to grow and develop their careers
with HSBC.
If you were asked about your concerns for HSBC in Vietnam, how would you reply?
The different opportunities available to HSBC to grow in Vietnam are considerable. My major concern is
to quickly grow our already strong human resources in order to fully capitalise on the opportunities
offered to us here.
What is the future outlook for HSBC in Vietnam?
HSBC will continue to invest in the rapid growth of our own operations in Vietnam. I am confident that
we will maintain and indeed enhance our reputation as the best foreign bank in the country.
By Ha Anh
Questions for discussion:

1/ Find out the elements which promote the success of HSBC in Vietnam market?
2/ To be a Marketing manager of HSBC in Vietnam, which factors are your most concerns
in developing market-share in next 3 years?