KEB Hana Bank is set to speed up its expansion in Vietnam, after acquiring shares of the country’s largest bank by assets.
The bank said Tuesday it became the second largest shareholder of the Bank for Investment and Development of Vietnam (BIDV), by acquiring 15 percent of the bank’s shares worth 1.01 trillion won.
This is the largest investment made by a Korean bank in the Southeast Asian country. The acquisition of shares has made Hana a strategic investor in the bank. The process was completed last month, after the two signed a deal for the acquisition in July.
Prior to Hana’s investment, Vietnam’s central bank held 95.3 percent of BIDV’s shares. BIDV is a state-run commercial bank, with brokerage, insurance and asset management units.
It is one of Vietnam’s four major commercial banks, along with Vietcom Bank, Vietin Bank and Agri Bank.
Established in 1957, the bank had 66.3 trillion won in assets as of the end of 2018 and the bank posted 381 billion won in net profit.
Hana held a ceremony in Hanoi, Monday, where Hana Financial Group Chair Kim Jung-tai, KEB Hana Bank CEO Ji Sung-kyoo and BIDV Chair Duc Tu Phan attended.
Other dignitaries present included South Korea’s ambassador to Vietnam Park Noh-wan, Vietnam’s deputy prime minister Vuong Dinh Hue and the State Bank of Vietnam’s Governor Le Minh Hung.
Hana Bank said it plans to transfer its risk management and retail finance knowhow to BIDV, which has focused on corporate finance.
“We hope that based on the two banks’ partnership, they can offer leading financial services to local companies and Korean firms in Vietnam, and play a bridging role in finance so that both countries can grow together,” Hana Financial Group Chair Kim said.
Hana Bank has two branches each in Hanoi and Ho Chi Minh. Based on its partnership with BIDV it will now be able to provide services through the latter’s network of 1,000 bank branches and 58,000 ATMs.
Competition among Korean banks in Vietnam is set to heat up, as most of them have sought to expand their presence there.
Woori Bank opened its 10th branch in Danang, Friday, and plans to open three more by the end of the year, and five next year.
Shinhan, which entered Vietnam in 1993, currently has 36 branches there.
https://www.koreatimes.co.kr/www/biz/2019/11/126_278615.html
