DBS Bank announced today that it will set up its first branch in Ho Chi Minh City, Vietnam, this year, after receiving regulatory approval to do so.

“The establishment of the branch in Vietnam will strengthen DBS’ Asia banking franchise. It will also enable the bank to support Singapore customers as they expand overseas, and to meet a growing demand for Asia banking expertise by Vietnamese firms,” says DBS.

At the start, DBS says the Ho Chi Minh City branch will focus on supporting the financial needs of Singapore and Asia-based corporates with business interests in Vietnam. DBS sayd these companies will enjoy access to a comprehensive suite of services, which include credit facilities, trade finance, cash management and treasury advisory.

Over time, the branch will extend its product and service offering to cater to affluent individuals and small and medium-sized enterprises.

DBS says it has a large number of customers with significant foreign direct investments in Vietnam.

According to the Vietnam Investment Review, as at late November 2009, it is estimated that Singapore companies have more than 760 projects in Vietnam, with total investment capital amounting to US$17 billion ($23.6 billion).