Krungsri Bank from Thailand has announced to postpone the business expansion plan in Vietnam after conducting market survey in Vietnam for two years.
This information has recently released in the latest newsletter of the Vietnam Trade Office in Thailand. Accordingly, after a two-year survey in the market of Vietnam, Krungsri Bank found that the cost of conducting mergers and acquisitions (M&A) is higher than expected.
In addition, regulations, licenses, people, and business environment in Vietnam are also the disadvantages. “With the number of consumer banks with limited licenses in Vietnam, the M&A cost will be high. Vietnam no longer prioritise the business expansion in the region”, the Vietnam Trade Office in Thailand cited the words of Krungsri.
Despite postponing the business expansion plan in Vietnam, the parent bank of Krungsri BankTokyo Mitsubishi (BTMU) is still holding 19.73 percent stake of the Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank).
It is known that BTMU is the subsidiary of Mitsubishi UFJ Financial Group (MUTG) the largest financial group of Japan, and one of the five largest financial organisations in the world with over 2,000 branches in more than 50 countries.
In addition to the banking sector, many big Thai corporations in the recent time have been planning to expand their business in Vietnam, such as SCG Group, TTC Holdings, and Thai Electricity Company AGAT, etc.
