Vietnam is an important part of a new “Asia-centric” strategy which Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is pursuing to strengthen its business in Asia, said Shosuke Mori, SMBC’s Asia Pacific Division.
As the government of Vietnam has been restructuring the local banking system, SMBC wants to contribute to the process by sustainably developing Eximbank and supporting other local banks’ reforms in the near future, Mori said.
SMBC, one of the largest and oldest banks in Japan, expects its clients worldwide to invest in Vietnam and hopes to contribute to the development of the country’s banking sector with its new banking management system, he said.
Receiving Mori in Hanoi on Monday, deputy prime minister Vuong Dinh Hue described the bank as an effective credit channel and gateway for foreign investors, including those from Japan, to enter Vietnam.
Hue welcomed the presence of SMBC in Vietnam and the role it was playing to restructure Eximbank.
He said a new scheme for restructuring credit institutions was adopted to improve the capacity of commercial banks and accelerate the resolution of non-performing loans (NLPs).
He, however, noted that even though the restructuring process had harvested some positive outcomes, many challenges remained. The government was committed to continue improving the local business climate and providing favourable conditions for both domestic and foreign investors, adding it would do its best to support SMBC in Vietnam.
SMBC has been present in the country since 1994 with a branch each in Hanoi and HCM City. Last year, both the branches posted zero NLPs and a total net profit of VND291.6 billion (over $12.8 million). SMBC is also Eximbank’s strategic investor and currently holds 15 per cent of the Vietnam-based bank’s charter capital.
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