Exchange rate fluctuations do not only affect families preparing foreign currency for overseas study or relocation plans; they also have a direct impact on the costs, cash flow and profitability of import-export businesses. Against this backdrop, Shinhan Bank Vietnam is expanding its foreign exchange expertise into broader financial solutions linked to trade and supply chains, with the aim of helping customers take a more proactive approach to cross-border financial activities.

Foreign exchange is increasingly connected to everyday financial decisions

A family preparing AUD to pay their child’s tuition in Australia, a customer needing USD for a relocation plan to the United States, or a business preparing foreign currency to settle an import shipment all face a common question: how can they stay proactive amid exchange rate fluctuations?

This was also one of the key issues discussed at an economic and foreign exchange market workshop for Priority Wealth Management (PWM) customers organized by Shinhan Bank Vietnam in Hanoi on August 11.

Mr. Lee Jong Hyuck, Deputy General Director of Shinhan Bank, delivered remarks at the event.

At the workshop, experts from Shinhan Bank Vietnam’s Global Trading Center shared key developments in the foreign exchange market and factors that could influence exchange rates, while offering insights to help customers better prepare for their foreign currency needs. For individuals, this could mean identifying when foreign currency will be needed and preparing funds according to a plan, rather than relying on a single purchase timing.

This approach is particularly important as exchange rates are simultaneously influenced by central bank monetary policies, economic outlooks, international trade, geopolitical developments and foreign currency supply and demand. In such an environment, accurately identifying the “peak” or “bottom” of an exchange rate is not easy. More importantly, customers need the ability to prepare in advance and manage risks in line with their financial objectives.

For businesses, proactive risk management rather than reactive responses

While exchange rate fluctuations may affect the cost of a financial plan for individual customers, for import-export businesses, the impact can directly translate into cost of goods sold, profit margins and cash flow.

The event attracted nearly 100 PWM customers

Determining foreign currency requirements for each payment period, balancing cash inflows and outflows, and preparing for different exchange rate scenarios can help businesses reduce their exposure to market volatility.

Mr. Jung Hyo Chang, Director of the Global Trading Center at Shinhan Bank Vietnam, shared: “Rather than simply reacting when the market fluctuates, proactively managing risks from now on will be the ‘key’ to helping businesses maintain stable operations and optimize profitability. Businesses should develop flexible financial plans that incorporate different exchange rate scenarios so they are always ready with appropriate response measures.”

In particular, for import-export businesses and companies participating in the supply chains of FDI corporations, financial needs rarely exist in isolation. A cross-border payment flow may begin with an order, followed by financing for production, supplier payments and foreign exchange management, before concluding when the business receives payment from its partner. The ability to connect these different links enables the bank to move beyond providing individual products and instead support the entire business cycle.

When the bank is there for more than just an FX transaction

For individual customers, Shinhan Bank Vietnam aims to bring foreign exchange market insights closer to real-life financial plans such as overseas study, relocation, remittances and overseas payment needs. In addition to meeting customers’ foreign currency exchange and transfer requirements, market insights shared by the bank’s expert team give customers a stronger basis for proactively preparing the foreign currency they need, in line with their financial goals and timing. The recent workshop was one of the activities aligned with this approach.

At the business level, foreign exchange is part of a much broader chain of financial needs. For import-export businesses in particular, a single trade contract may simultaneously generate requirements for foreign currency, international payments, trade finance, working capital and cash flow management. Shinhan Bank therefore aims to connect these solutions to support businesses throughout the entire process, from sourcing raw materials and production to sales and collection.

This approach is being further expanded as Vietnamese businesses become increasingly integrated into the supply chains of FDI corporations and global production networks. Leveraging its strengths in serving Korean and FDI businesses in Vietnam, Shinhan Bank is developing Supply Chain Finance (SCF) solutions to support the funding and cash flow needs of businesses and their supply chain partners.

From a family’s foreign currency needs to a company’s cross-border cash flows, Shinhan Bank is gradually expanding its role from providing foreign exchange services to becoming a partner in managing financial plans with international elements, backed by its foreign exchange capabilities, global network and deep understanding of the Vietnamese market.

By Vietnam Business Forum