Centralised treasury management: A strategic imperative for large corporations in Vietnam

Treasury Management

As Vietnamese corporations grow and complexity, treasury leaders are being asked to do more - with less. Centralised treasury management is fast becoming the gold standard for organisations that seek not just financial control, but strategic agility in a competitive, fast-changing economy.

Key Takeaways

  • Centralised treasury management empowers corporations to manage liquidity, risk, and capital more effectively across subsidiaries and business units—especially in high-growth markets like Vietnam.
  • Decentralised treasury systems are increasingly unsustainable for organisations with complex operations, resulting in inefficiencies, financial blind spots, and missed opportunities.
  • With a clear strategy, stakeholder alignment, and the right technology, treasury centralisation becomes a lever for long-term competitiveness and sustainable growth.

The Strategic Case for Treasury Centralisation

Over the past decade, treasury management has evolved from a siloed, operational function to a central part of corporate strategy. As businesses scale, especially in emerging markets like Vietnam, the limitations of decentralised treasury models become clear: fragmented data, inconsistent processes, and reduced visibility into overall financial health.

Centralised treasury management addresses these pain points by consolidating financial activities - cash positioning, risk management, funding, and investment planning - into a single, unified function. With the support of modern Treasury Management Systems (TMS), treasurers gain real-time insights and control across the enterprise. The result is faster decision-making, tighter compliance, and significant cost savings.

In Vietnam, the trend toward centralisation is being shaped by several factors: globalisation, foreign direct investment, regulatory modernisation, and digital transformation. While adoption remains uneven, the direction is clear: treasury centralisation is no longer a best practice reserved for multinationals—it’s an emerging necessity for domestic market leaders as well.

The Risks and Costs of Decentralised Treasury Models

Companies that maintain decentralised treasury functions often underestimate the hidden costs and operational risks.

  • Inefficiency – In decentralised models, each subsidiary manages its own finances, leading to redundant processes. For example, if a global company has 10 subsidiaries each spending 50 hours a month on cash forecasting, it wastes a total of 500 hours, costing around VND 600 million per month or VND 7.2 billion annually (assuming VND 12 million hourly rate).
  • Lack of Transparency – Decentralised systems create siloed information, limiting senior management's visibility of the overall financial status. For instance, if two subsidiaries hold VND 360 billion in cash but have VND 240 billion in liabilities, management might overlook potential liquidity issues and missed interest income from centralised cash management.
  • Inconsistent Risk Management – Decentralisation leads to varied risk assessment methods, increasing financial exposure. Without a unified hedging strategy, a company facing VND 2.4 trillion in currency fluctuations could risk losses of VND 120 billion due to unhedged positions.
  • Increased Operational Costs – Managing treasury functions across multiple units raises operational costs. If each unit spends VND 4.8 billion annually on treasury activities, five units would total VND 24 billion per year. Centralising could reduce costs by 30-50%, saving VND 7.2 – 12 billion annually.

How Centralisation Delivers Strategic Advantage

A well-structured centralised treasury model offers a wide range of tangible and strategic benefits.

Based on our research and analysis, we present quantifiable benefits that companies worldwide have achieved through centralised treasury management:

5-15%
10-30%
1-5%
20-50%
10-20%
Minimised working capital requirements through enhanced forecasting. Reduced excess cash reserves due to enhanced cash positioning. Optimising cash utilisation from increases interest income on surplus cash. Reduced currency exposure losses through improved hedging strategies. Lower borrowing costs by optimising debt levels and enhancing credit ratings.

When Is a Company Ready to Centralise?

While every organisation is different, there are some common signals that suggest a business is ready - or overdue - for treasury centralisation:

Criteria Description

Operational Complexity

  • Corporations with 3 to 5+ business units or subsidiaries in different sectors (e.g., manufacturing, services) may begin to experience inefficiencies that warrant centralisation.

Revenue Criteria

  • Typically, around 1,000 billion VND to 3,000 billion VND. Firms exceeding 3,000 billion VND often justify centralised treasury functions due to increased complexity.

Geographical Spread

  • Companies with operations in 3 to 10+ provinces within Vietnam or engaged in international markets may face complexities that necessitate a centralised treasury.

Number of Entities

  • Corporates with 5+ subsidiaries or affiliates typically require centralisation to manage cash flow and risk effectively.

Transaction Volume

  • Organizations processing 1,000 to 5,000+ transactions monthly could benefit from centralisation to enhance operational efficiency.

The more of these criteria a company meets, the more value it can unlock by transitioning to a centralised model.

Choosing the Right Centralisation Model

There is no universal model for centralised treasury management. Instead, organisations must choose the structure that best aligns with their size, structure, and geographic reach.

Description

Global Treasury Centers (GTCs) centralise treasury management for multinational corporations, streamlining Cash Management, Risk Management, Funding, and Investments while consolidating positions and improving negotiations and Foreign Exchange transactions across global subsidiaries.

Benefits
  • Enhanced visibility over global cash positions.
  • Improved bargaining power with financial institutions due to consolidated operations.
  • Streamlined risk management through standardised policies and procedures.
Example

A corporation like Unilever, which operates in numerous countries, benefits from a GTC to optimise its cash flow and manage currency risks effectively across its diverse global operations.

Best Practices for Implementing a Centralised Treasury Model

Transitioning to a centralised treasury model requires more than a vision - it demands a thoughtful, phased approach rooted in the business's financial and organisational reality. Based on successful transformations, four key pillars stand out.

Overcoming the Common Challenges

Tackling resistance to change

Employees often resist new systems due to fear of the unknown, but this can be addressed by engaging stakeholders early to foster ownership and alignment with goals. Clear communication of benefits—such as improved efficiency and cost reduction—combined with comprehensive training ensures a smoother transition and builds confidence in new systems.

Navigating global and local complexities

Balancing global objectives with local needs requires collaboration with regional teams to gain insights into local practices and regulations. Flexible centralisation models that respect cultural nuances and regional variations enable organisations to align global strategies with local requirements effectively.

Ensuring data security and compliance

Centralised data management demands robust cybersecurity measures like encryption and intrusion detection to protect sensitive information. Staying updated on data protection standards and adhering to local laws ensures compliance and mitigates regulatory risks.

Case Study: Treasury Transformation in Action

Background

Acme Corporation, a multinational manufacturing company with operations across North America and Europe, previously managed treasury functions independently within each subsidiary, leading to fragmented cash visibility, inefficient payment processing, and increased exposure to currency fluctuations. To optimise cash flow, reduce transaction costs, and mitigate financial risk, Acme decided to implement a centralised treasury management system across all subsidiaries.

Conclusion

Treasury centralisation is not a short-term fix—it’s a long-term strategy. For Vietnamese corporations seeking resilience, agility, and financial clarity, centralising treasury functions is one of the most impactful transformations they can make.

It enables treasurers to shift from reactive management to strategic leadership—supporting innovation, expansion, and enterprise-wide performance. As businesses in Vietnam grow more complex, the question isn’t whether to centralise—but how soon to start.

Authors

Mohammad Mudasser
Mohammad Mudasser

Director, Deals - Transformation, PwC Vietnam

Luu Chi Nhan
Luu Chi Nhan

Manager, Working Capital Management, PwC Vietnam

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