Krause, currently head of global transaction services for Citi in China, replaces Charly Madan who has left for new opportunities after 14 years with the bank. Madan's next move has not been revealed.
In his new position, Krause will report to Piyush Gupta, head of the Asean institutional clients group and Citi country officer for Singapore.
Prior to his new role, Krause led Citi China's cash management business for corporate clients. He was also formerly cash management and trade head at Citibank Japan, before moving to Shanghai in 2002.
A spokesperson for Citi says a replacement for Krause's position in China has been found, but declined to reveal names.
Krause's appointment comes as Vietnam struggles to contain soaring inflation and collapsing markets. Inflation is now running at an annual rate of 25% and the country's ratings outlook was recently downgraded by Moody's from positive to negative.
The central bank also recently raised interest rates to 14% in an attempt to stabilise the economy.
Citi has, however, indicated its commitment to this market in an internal memo related to Krause's appointment. It indicates plans to continue to ôexpand the Vietnam business, acquire new customers and take advantage of the market's economic growthö.