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HSBC has just received an internationally-recognised award, Best foreign bank in vietnam 2006, by FinanceAsia.

What were the selection criteria for the award? FinanceAsia selected the award winners on the basis of their financial strength and performance, the value of the franchise, acquisitions that help improve the franchise, staff numbers, client base, major customers, who set aside their valuable time to write strong testimonials that helped HSBC gain credit important role in the selection process. We are very proud to be named Best Bank in Vietnam by FinanceAsia, one of the most reputable financial publishing houses in Asia. The award reflects our relentless efforts in providing customers with world-class services and we are delighted to see our position as the leading foreign bank in Vietnam now being reaffirmed by the winning of this prestigious award. It is also worth mentioning that The Asian Banker ranked HSBC at Number 2 in its scorecard for the Best Retail Bank in VietNam 2006 Award, and we are proud to be the only foreign bank in the top 3, despite our limited distribution network. HSBC has also received international awards in securities services from other international publications. Can you tell us more about these awards? HSBC recently won the Best Sub-Custodian Bank in Vietnam 2006 award from Asset Triple A. We were also ranked Number 1 and-a first in Vietnamreceived a Commended Rating from Global Custodian Magazines market survey Review of Agent Banks in Emerging Markets in 2005. These international industry awards reflect our leading position in securities services in Vietnam. HSBC Vietnam was the first foreign bank to obtain a custodian licence in Vietnam. We are the only foreign bank in the country that provides fund administration services, through a local team of eight staff. Our focus is to bring international practice to the Vietnamese securities market and to provide worldclass services to our customers. Our competitive advantage lies in our consistency, reliability and flexibility of services. In the first half of 2006 we installed a stateof-the-art custody system (HSBCs global securities system) to fully automate the processing of securities transactions. We will also soon be launching HSBCnet, our global Internet banking platform, for securities customers in Vietnam. We are very pleased to be able to establish good relationships with regulators to ensure we are able to represent our clients. Interests. As the leading and most experienced sub-custodian bank in Vietnam, HSBC has been frequently nvited by regulators to share best practice from other international markets and also give advice on the development of the securities market infrastructure. We are delighted that our existing and potential customers recognise our efforts and, as a result, most major global custodian banks, investment funds and broker dealers have appointed HSBC as their sub-custodian bank in Vietnam. HSBC is one of the most successful foreign banks in Vietnam in terms of growth, returns and brand awareness. What major factors have contributed to the success of the bank?

I must say that HSBCs successes to date can mainly be attributed to our people. By people I mean our talented staff, who are dedicated, knowledgeable and professional, and consistently deliver superior customer services. And, of course, a successful bank must have successful customers. HSBC is fortunate to be able to establish trusted partnerships with our clients. With our intensive global network coupled with our local roots and presence, HSBC is proud to say that we are in a position to provide our clients with financial support as well as connections for business success, and this is where we excel. People here also means other stakeholders, such as regulators, government authorities and also the general public, who have been very supportive of us. Without people we could not be as successful as we are to date. Last but not least, it is encouraging that HSBC in Vietnam has received every possible support from our head office for our business plan in Vietnam, a country that has been identified by HSBC as a priority market. We have learned that in September, HSBC Asia Pacifics Board of Directors will gather here in Vietnam to discuss the banks future strategy. Why Vietnam and not somewhere else? Does this mean that Vietnam will play a role in the banks future plan? Are there any significant developments in the local banking market that HSBC in planning for? What are they? This is a formal meeting of our Board of Directors. Every year, a specific market is selected as the host country for the meeting and the selection seflects the importance as well as the potential of the market. This is a unique and special event for HSBC in Vietnam and highlights the focus on importance placed on Vietnam by the HSBC Group. 2005 marked a successful year of our operations in Vietnam, both in growth and returns. We opened the Hanoi branch in February and the Can Tho representative office in Techcombank. We have doubled our market share among foreign banks in Vietnam during the last two achieved so far, and given the growth of Vietnams economy, it is clear that HSBC has made Vietnam a priority country for future development. It is said that HSBC recently proposed to the Techcombank board of management that it raise its stake to 20 percent from the current 10 percent. Is this true? If yes, why now? If no, when will HSBC make such a proposal to Techcombank? Regulations limit the stake held by foreign banks in domestic financial institutions to 10 percent. We are interested in increasing our stake in Techcombank as and when regulations permit. Our priority now is to implement the technical support agreements signed with Techcombank. Under these agreements we will offer assistance on a range of areas, including risk management, corporate governance and internal audit. The business co-operation agreement will allow both parties to actively explore business opportunities in a wide range of areas within retail and corporate and commercial banking in Vietnam.

A consultant from HSBC Asia Pacific is now in place in Techcombank to provide guidance on corporate governance and risk management. In addition, HSBC in Vietnam has seconded a senior executive to Techcombank as Deputy General Director in charge of business development in the south of Vietnam. We also formally assumed a seat on the board of Techcombank in August this year. Our focus now is to work closely with Techcombank to bring our strategic partnership to a new height for the benefit of both parties, and above all for the benefit of our customers. What are the most important factors that foreign investors, especially those in the financial sector like HSBC, consider when deciding to invest in Vietnam? Vietnam has a number of factors in its favour, the most attractive being its emerging market status, offering many business opportunities as well as obstacles. Although competition is beginning to mount, there are plenty of opportunities for everyone. However, with our long history in Vietnam we should have an advantage. Vietnamese people are also the countrys most valuable asset. Vietnams young, educated, intelligent and eager to learn workforce has been the major driving force behind the recent surge in foreign investment in Vietnam. Another factor is the astonighing economic growth rate Vietnam has recorded in a relatively short period of time since it embarked on market reform and liberalisation. Vietnam has now become one of the fastest growing economies in Asia. These exciting developments will continue as Vietnam continues its reform measures. Last but not least, the Vietnamese Government has sent a strong signal to the world about its commitment to gradually open the door and integrate into the global economy. Vietnams pending entry to the WTO is a good example. These efforts have helped build up investor confidence when deciding to invest in Vietnam. Human resources is a very interesting topic. The labour market in Vietnam has been heating up. There is a shortage of skilled upper management people in the blossoming financial sector. What has HSBC done to attract and retain the best talent? At HSBC we strongly believe that people are fundamental to our business and its success. Our top priority is to identify, retain and develop high potential talent, especially those who are local Vietnamese. We currently have the largest and most diverse employee base in Vietnam. We have more than 250 staff from nine countries, 95 percent of whom are Vietnamese, and most of the senior management positions are held by Vietnamese. We do not adopt short term strategies for quick wins. We commit to sustainable growth in human resources and have made great efforts in staff training and development. We have rolled out local, overseas and on-line training courses to staff almost every week. In addition to training we have also offered overseas attachment programs to executives and officers so that they can gain practical experience and international exposure. And in order to prepare the next

generation of leaders, we have identified talent and sent them to the Management/ Leadership Assessment Centre and Development Programs. We have recently launched our Management Associate Program and Commercial Banking Development Program to attract high calibre candidates for middle and senior management positions. When working for HSBC, employees are offered clear career paths and a range of opportunities. I am very proud of my team here in Vietnam, who own the success of the bank, and I believe that our continued growth will create many opportunities for our talented staff to grow and develop their careers with HSBC. If you were asked about your concerns for HSBC in Vietnam, how would you reply? The different opportunities available to HSBC to grow in Vietnam are considerable. My major concern is to quickly grow our already strong human resources in order to fully capitalise on the opportunities offered to us here. What is the future outlook for HSBC in Vietnam? HSBC will continue to invest in the rapid growth of our own operatins in Vietnam. I am confident that we will maintain and indeed enhance our reputation as the best foreign bank in the country. Questions for discussion: 1/ Find out the elements which promote the success of HSBC in market? 2/ To be a Marketing manager of HSBC in Vietnam, which factors are your most concerns in developing market-share in next 3 years?