Vietnam: From manufacturing powerhouse to strategic regional treasury hub

Vietnam is witnessing a strategic shift in corporate financial management. As liquidity surges from manufacturing and export activities, Chief Financial Officers and Treasurers are moving beyond simple cash holding toward data-driven working capital optimization. We sat down with Mahesh Kini, Global Head of Cash Management at Standard Chartered Bank, to discuss how AI is redefining foreign exchange risk and the roadmap for Ho Chi Minh City to become a Vietnam International Financial Centre (VIFC).

The shift from management to optimization

* Treasurers are becoming more strategic. How is bank helping clients move from managing liquidity to optimizing working capital?

We are seeing a clear shift driven by the scale of activity in markets like Vietnam. As global companies expand here, they are producing, exporting, and selling more locally, generating meaningful levels of liquidity. This is increasingly attracting attention from regional treasury centers in Singapore and Hong Kong, as well as global teams in Europe and the U.S..

Consequently, the focus has moved beyond just holding cash to active strategic questions: How do we optimize liquidity within Vietnam? How do we structure cash pooling or concentration? And how do we manage foreign exchange exposures and repatriation more efficiently?

AI: The new frontier in risk management

*Many banks talk about AI - what is it actually solving for clients today?

AI is primarily solving for speed, efficiency, and decision-making. Previously, treasury teams relied on manual processes - downloading data into spreadsheets and making reactive decisions.

Today, AI-enabled systems can aggregate and analyze data across accounts and currencies much faster, turning it into actionable insights. One clear example is in foreign exchange. We recently worked with a client to integrate an AI-powered solution that forecasts FX exposures with over 90% accuracy in real time. This allows teams to anticipate currency risks earlier and reduce hedging costs, especially in volatile markets.

How is Standard Chartered using AI to support these treasury operations?

We apply AI both internally and for our clients. Internally, tools like Microsoft Copilot allow our teams to generate insights and respond to clients in minutes—or even seconds - rather than days.

For clients, we are developing AI-powered chatbots to handle routine queries and navigate new standards like ISO 20022. Furthermore, in a 24/7 payment landscape, we use automation for "programmable payments," where routine transactions are executed automatically based on predefined rules. This shifts treasury from manual, reactive processes to intelligence-driven workflows.

The Roadmap for Vietnam’s International Financial Centre

Many leading International Financial Centers (IFCs) have succeeded in attracting multinational corporations. From a global standpoint, what should Vietnam implement to encourage these institutions to operate within the VIFC?

Based on our experience across IFCs like Dubai, India’s GIFT City, and the Shanghai Free Trade Zone, there are four fundamental factors for success:

• Stable Legal Framework: A framework that is understood globally is essential, as corporates benchmark jurisdictions before committing operations.
• Consistent Regulatory Environment: This ensures the international community feels comfortable increasing their flows and exposure.
• Talent: The ability to develop local expertise and attract international talent to live and work in the environment.
• Financial Ecosystem: A ready network of banks, fintechs, legal firms, and consulting firms.

Locating the IFC within central Ho Chi Minh City is a positive move that creates institutional synergies. The opportunity is to create an international operating environment that enables clients to manage liquidity and cross-border treasury globally.

Our role starts with advisory—helping clients understand how an IFC works and how to set up. We then provide full banking services, including liquidity management, FX, and hedging. As a global bank, we act as a connector, linking IFC operations to regional or global cash pools via APIs. In some cases, like India’s GIFT City, we even act as a US dollar clearing bank to support domestic institutions