Citibank seeks go-ahead to boost Vietnam presence

Citibank NA, a unit of Citigroup Inc , said it would soon get the go-ahead from Vietnam's central bank to set up a subsidiary in the country, which would make it the seventh wholly foreign-owned lender to operate there.

The U.S. lender said the State Bank of Vietnam (SBV) governor would grant it a letter of acceptance, in principle, in Washington on Wednesday, witnessed by Communist Party chief Nguyen Phu Trong, who is on a landmark visit to the United States.

Citibank currently has two branches in the Southeast Asian nation. By setting up a fully-owned bank in Vietnam, the company could help strengthen Vietnam's banking sector and support local and foreign clients, Citi Vietnam's Country Officer Natasha Ansell said in a statement.

Fully foreign-owned banks in Vietnam currently include HSBC Holdings , Standard Chartered , Australia and New Zealand Banking Group , South Korea's Shinhan Bank <055550.KS> and Malaysia's Hong Leong Bank Bhd .

In March, the SBV also allowed Malaysia's Public Bank Bhd to turn its Vietnam-based venture with local lender BIDV into a fully foreign-owned bank.

(Reporting by Mai Nguyen; Editing by Martin Petty and Pravin Char)

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