Citi strengthens focus on Asia South to drive trade and investment

Amol Gupte, Asia South Head of Citi. Photo courtesy of Citi

Why is Asia South relevant for Citi?

Asia South, which includes ASEAN and the Indian subcontinent, represents a significant growth area for Citi. The region is home to approximately 2.5 billion people, about one-third of the global population, with India accounting for more than half of that. As the macroeconomic landscape evolves, this region is attracting increased investment and economic activity.

Currently, Asia South is Citi's fastest-growing geography. The bank operates in over 95 markets and facilitates transactions across 180 markets, moving nearly US$5 trillion daily for clients. Citi's long-standing presence in the region provides a strong foundation for understanding economic trends, regulatory environments, and business dynamics. For example, the bank has operated in some countries for over a century, celebrating 65 years in Malaysia and 30 years in Vietnam.

Citi's banking franchise serves a diverse client base, including multinational corporations, regional enterprises, and medium-sized businesses. The bank has observed strong activity in investment banking, with a resurgence in equity capital markets (ECM) across Asia. India had a record-breaking year in 2024, and there is a growing demand for financing and M&A activities across ASEAN. Citi's corporate and commercial banking divisions are positioned at the center of evolving supply chain dynamics and capital flows.

Vietnam, in particular, is emerging as a key manufacturing hub and a growing center for service industries. Citi’s global network strategy enables it to support clients expanding in Vietnam by facilitating trade and investment.

Are there specific themes that Citi is focusing on?

Several key trends are shaping economic growth in Asia South. India's GDP is projected to grow by over 6% in 2025, while most ASEAN economies are expected to expand within the 5-6% range. Vietnam and the Philippines stood out in recent economic performance, growing by 7.09% and 6.3%, respectively. This strong growth underpins increasing opportunities in trade finance, supply chain diversification, digital transformation, and sustainable financing.

New trade corridors are emerging, with Latin America and the Middle East increasing investments in ASEAN, and the Middle East and UAE deepening ties with India. Foreign direct investment (FDI) flows between Asia and the Middle East are expected to exceed $270 billion over the next decade, nearly doubling from the previous 10 years. These investments are expanding beyond oil and energy into broader economic sectors.

Vietnam's FDI disbursement reached a record high of approximately $25.35 billion in 2024, marking a 9.4% annual increase. This underscores Vietnam's growing role as a key investment destination.

From a demographic perspective, the region creates 20-25 million jobs annually, with about half of these in India and the other half spread across ASEAN. The combined GDP of this geography is approximately $8 trillion, evenly split between India and ASEAN. A young workforce is driving growth across both regions.

In addition, digitalization is accelerating across the region. A digitally native population is fueling rapid innovation and expansion in sectors such as e-commerce, financial services, health tech, and transportation. Investment in digital and AI-driven infrastructure, including data centers, energy solutions, and semiconductors, is also rising. These developments are contributing to long-term structural growth in the region.

How does Citi see Vietnam's role in global trade, and how will digital transformation impact growth and create opportunities in this region?

In recent years, global supply chains have shifted towards ASEAN and India, with Vietnam emerging as a major relocation destination. Since 2018, approximately 37% of all manufacturing shifts from China have moved to Vietnam. This trend has contributed to ASEAN's increased share of global exports, particularly in key sectors such as electronics and manufacturing. For example, since 2019, China's share of U.S. imports in the computer and electronics sector has declined by 24%, while Vietnam’s share has grown by 8%.

Digital transformation is another major driver of economic growth in the region. Improved digital infrastructure has expanded connectivity, enabling new business models and increasing financial inclusion. In some rural areas, digital access in ASEAN has tripled since 2015. Digital payments now account for over 50% of ASEAN's total transaction value, facilitating direct-to-consumer commerce.

In India, business-to-consumer (B2C) e-commerce is expected to grow five- to six-fold, reaching $350-380 billion by 2030, with the number of online shoppers expected to double. Similarly, ASEAN's digital economy has grown eight times over the past eight years, surpassing $100 billion in revenue across multiple sectors.

The digital transformation wave is not only driving e-commerce but also enhancing productivity through automation and AI. These advancements are reshaping industries such as financial services, supply chain management, and logistics. In Vietnam, digital transformation aligns with national development goals, with a target for the digital economy to contribute 30% of GDP by 2030.

The government is promoting innovation through initiatives like the "Make in Vietnam" campaign, which supports local tech development and startups. This strategy aims to strengthen domestic industries and position Vietnam as a competitive player in the global digital economy.

How is Citi helping clients leverage these opportunities?

Citi’s objective is to support clients in expanding globally and navigating new market opportunities. The bank connects clients across more than 95 markets, providing tailored financial solutions, industry insights, and market entry support.

In Vietnam, Citi has built a strong presence over the past 30 years, facilitating key transactions in capital markets, syndicated loans, and trade finance. The bank serves a diverse portfolio of Fortune 500 companies investing in Vietnam, supporting their growth through a network-driven strategy.

Citi plays a vital role in integrating Vietnamese businesses into the global economy. The bank provides financial tools and international connections to help local companies expand beyond domestic markets. Additionally, Citi works closely with foreign investors entering Vietnam, particularly in manufacturing and technology sectors, offering advisory services and strategic insights.

Through its global expertise and deep regional knowledge, Citi continues to strengthen its role as a bridge between Vietnam and the world, supporting trade, investment, and economic development.