The Southeast Asian country's economic performance has lifted it to emerging market status and piqued the interests of businesses including private banks.

Citigroup and Ho Chi Minh City Development Joint Stock Commercial Bank, aka HDBank, have agreed to expand banking and financial services under a new pact, highlighting the continued appeal of Vietnam as a market. 

The organisations will strengthen cooperation in banking, treasury and risk management, capital markets, trade finance, payments, foreign exchange, derivatives, and other financial services.

As part of the visit to the US by a Vietnamese delegation that had been attending the United Nations General Assembly in New York, the banks signed a memorandum of understanding there last week. 

“The MoU further reinforces Citi’s long-term commitment to the ongoing modernisation and development of Vietnam’s financial sector. It also opens up additional opportunities for collaboration with HDBank across a range of areas where Citi has distinctive strength and expertise,” Minh Ngo, Citi country officer and banking head for Vietnam, said.

Nguyen Huu Dang, CEO of HDBank, added: "HDBank is actively strengthening partnerships with leading global financial institutions to expand our ability to serve clients and enhance access to international capital markets and financial resources."

The appointments come at a time when the Southeast Asian country's economic performance has risen to emerging market status, along with the rise of an affluent middle class which has piqued the interest of wealth managers and private banks. Banks, which are adding to teams that include Vietnam coverage include HSBC and Switzerland's Bordier & Cie, for example.