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.
Companies that maintain decentralised treasury functions often underestimate the hidden costs and operational risks.
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. |
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 |
|
Revenue Criteria |
|
Geographical Spread |
|
Number of Entities |
|
Transaction Volume |
|
The more of these criteria a company meets, the more value it can unlock by transitioning to a centralised 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.
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.
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.
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.
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.
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.
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.