Case Study: Vietnam Real Estate Developer

Client Challenge

• The company is a commercial and residential real estate developer. Their property portfolio consists of multiple office, residential and retail projects in Vietnam.
• As a real estate developer, part of the company’s operations involves the construction of properties. This necessitated a number of payments to suppliers and vendors for things such as construction materials.
• The company relied heavily on paper-based payment instruments. They were manually prepared, handled and sent, which resulted in both significant administrative burden for the employees, along with increased operational risk from fraud or loss of instruments.
• The company also noted that they were using various banking partners in order to make these payments. Over time, this resulted in cumbersome account management processes and overall lack of centralised visibility on cash positions.

Transformation & Success

• HSBC worked with the company to devise a solution centered on HSBC Connect host-to-host (H2H) connectivity. The H2H solution eliminated the need to use paper payments for the entities involved in the H2H solution, reducing administrative burden and operational risk. Payments for the entities involved in the solution are now 100% straight-through-processed.
• The solution allowed the company to rationalise the number of bank accounts it held in Vietnam by centralising most of their entities’ payment accounts with HSBC. This enabled more efficient account management processes and centralised visibility on cash positions.
• The experience and expertise of HSBC’s Client Management team helped to mitigate challenges in implementation through difficult business environments such as COVID-19.

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