In a significant move to bolster the growth of Vietnamese businesses, HCM City Development Commercial Bank (HDBank) has established a strategic partnership with the London Stock Exchange (LSE). This agreement, signed on April 14 in Ho Chi Minh City, aims to facilitate the access of Vietnamese enterprises to international capital markets, a vital component as the country pursues its ambitious target of 10% GDP growth.
The announcement was made during an Investment Forum co-hosted by HDBank, LSE, and the Việt Nam International Finance Centre (VIFC). With Vietnam undergoing extensive reforms to develop its capital markets, including recent upgrades to emerging market status from FTSE Russell, the government acknowledges the imperative need for international capital as a reliable financing source.
VIFC, inaugurated earlier this year, serves as a conduit for foreign investment into Vietnam. The collaboration between HDBank and LSE is seen as another significant milestone in this effort to integrate Vietnamese businesses with global financial standards.
The partnership will promote cross-border fundraising initiatives, encompassing the issuance of shares, bonds, and other financial instruments on the London market. In addition, it aims to enhance connections with international institutional investors while improving transparency and corporate governance standards within Vietnamese enterprises.
HDBank, a major player in Vietnam’s financial sector, offers a comprehensive range of services, including retail and corporate banking, securities, and insurance. As a co-founder of VIFC, HDBank aims to be the preferred partner for Vietnamese companies seeking international capital avenues.
The LSE, known for housing over 1,600 international firms and managing one of the largest bond markets globally, plays a crucial role in the financial ecosystem. The partnership is expected to extend beyond mere capital raising; it seeks to elevate Vietnamese businesses in terms of governance, transparency, and sustainable practices.
HDBank has also begun collaborating with several leading Vietnamese companies in sectors such as industrial manufacturing and exports, including Hoa Sen, THACO, and Phúc Sinh, to support their entry into international markets. These collaborations focus on creating capital structures, providing listing advice, and connecting these firms with global investors.
Kim Byoungho, chairman of the Board of Directors at HDBank, emphasized that this collaboration is about more than just raising capital. He highlighted the importance of helping Vietnamese firms meet global governance standards and creating sustainable development pathways. “Through the London platform, HDBank expects to open a long-term connection channel between the Vietnamese market and international investors,” he said.
Furthermore, HDBank announced plans to issue up to $300 million in international green bonds, significantly advancing its strategy for sustainable financing and broadening its long-term funding base from international markets.
Dame Julia Hoggett, Managing Director of the London Stock Exchange, expressed appreciation for HDBank’s role in enhancing market connectivity and facilitating access to global capital. She noted that the partnership underscores London’s commitment to supporting emerging markets in elevating their standards and fully integrating into the international financial system.
