Citi supports growth of medium-sized foreign companies as trade corridors evolve

Gunjan Kalra, Head of Citi Commercial Bank for Japan, Asia North, and Australia, and Asia South. Photo courtesy of Gunjan

Citi is celebrating its 30th anniversary in Vietnam. What are your thoughts on the country's potential from a global business perspective?

Vietnam has greatly benefitted from shifting trade dynamics, emerging as a key destination for manufacturing and supply chain relocation.

Citi has observed strong growth in the Asia-to-Asia trade corridor, particularly from China into Vietnam, in sectors such as AI hardware, personal computers, and electronics. There has also been high double-digit growth in trade activity between South Korea and Vietnam. Additionally, Vietnam has attracted increased U.S. inbound investment, particularly following the comprehensive strategic partnership established between the two countries.

The AI-driven economic rebound is also fueling demand for legacy semiconductor equipment, benefiting economies such as Malaysia, Singapore, and Vietnam. As multinational corporations expand their manufacturing footprint in Vietnam, their supply chains are following suit. This trend has led to the rise of local Vietnamese manufacturing entities that now play a key role in global supply networks.

At Citi Commercial Bank, we aim to be the banking partner of choice for medium-sized companies with cross-border business needs. As these companies expand, we leverage our global network and banking expertise to support their operations in Vietnam and beyond.

How is Citi facilitating inbound investment flows as trade corridors evolve?

Vietnam remains a key destination for foreign investment, and Citi is committed to equipping global businesses with financial expertise, digital capabilities, and cross-border solutions to ensure their success in the market.

To support this, Citi Commercial Bank (CCB) Vietnam has established dedicated corridor teams with native language proficiency and deep knowledge of business practices and regulations in key markets such as Greater China, South Korea, and the U.S. These teams work closely with medium-sized foreign companies, providing insights into Vietnam's business environment and regulatory landscape to facilitate market entry and expansion.

CCB also curates in-depth country profiles and investment proposals, which are shared with decision-makers through targeted marketing initiatives, roadshows, and direct engagement with parent companies.

Leveraging Citi's global network, CCB ensures seamless cross-border transactions, offering standardized processes for due diligence, transaction execution, and risk management. This allows clients to operate efficiently while complying with both international and local regulations.

A key competitive advantage of CCB is its ability to extend credit to Vietnamese subsidiaries based on the financial strength of the parent company, enabling businesses to accelerate growth and strengthen their local presence.

With strong local expertise and a global banking infrastructure, CCB continues to be a trusted financial partner for medium-sized companies, helping to facilitate investment flows and support Vietnam's economic development.

What are some of the banking solutions Citi provides to medium-sized companies?

Expanding into new markets requires a comprehensive suite of banking solutions, covering: cash management (liquidity management, treasury solutions, supplier payments, payroll, instant payments), trade finance (letters of credit, supply chain finance, trade credit solutions), foreign exchange and risk management (local currency exchange, hedging strategies)

Citi's commercial banking clients benefit from a global network, integrated banking solutions, and a strong commitment to innovation. Our transaction banking capabilities are known for their scale, efficiency, and focus on enhancing client experience.

As business models evolve, Citi continues to develop innovative financial solutions. With the rise of digital commerce and instant payments, we offer real-time liquidity management tools to help businesses manage 24/7 cash flow operations.

Beyond banking, Citi also provides capital-raising and advisory services through its investment banking division. As businesses expand in Vietnam and require additional capital, Citi assists with fundraising strategies, equity financing, and debt structuring.

Are there successful cases that could inspire other mid-sized foreign enterprises on this journey?

Citi Commercial Bank has played a key role in supporting medium-sized foreign companies in Vietnam.

For example, Citi has provided working capital and social finance term loans to an Indian coffee processing company, enabling it to source coffee beans directly from farmers and support local communities.

Additionally, Citi facilitated a green trade finance facility for a leading manufacturer in the recycling wastepaper industry, helping the company strengthen its sustainable business practices.

In the healthcare sector, Citi arranged a working capital facility for a nationwide pharmacy chain, as well as another retail pharmacy network in the Mekong Delta, improving access to essential medicines for the general population.

Citi has also supported a leading OEM athletic footwear manufacturer, helping optimize trade and treasury operations while providing financing solutions to enhance operational efficiency.

For the past three decades, Citi has remained committed to helping medium-sized businesses expand into Vietnam, providing them with banking solutions tailored to their growth needs. As global trade continues to evolve, Citi remains a strategic financial partner for companies seeking to establish and expand their operations in Vietnam.