He made the comments in Hong Kong at a reception for a joint Vietnam-Republic of Korea delegation of journalists visiting HSBC headquarters, where the company recently convened an informal shareholders' meeting.

"Vietnam is increasingly considered a priority for us. HSBC is at the start of a very exciting journey in Vietnam, and is fortunate to have a presence in this fast-developing market. We are keen to expand our presence in Vietnam to ensure that we are able to tap the increasing opportunities the country offers," said Mr Smith.

With two branches and a representative office in Vietnam, he said he wants to see the bank's network further expanded.

The HSBC President touched on Vietnam's rapid economic growth, describing the economy as "the best-performing in the Asia Pacific region." However, he said that the nation's regulatory constraints restrict domestic market access for international banking concerns. "But that will change, and when regulations change, we will grow our business accordingly," he said.

He emphasised that investors have to be realistic about the pace of financial deregulation, and that the process had to balance various interests and ensure the country maintains a strong financial services sector.

The HSBC president further said that Vietnam's local banks are improving very quickly, but warned that competition from foreign banks will make business very challenging.

However, the end result will be a more diverse range of banking products, giving consumers access to better services, he concluded.