South Korea’s KEB Hana Bank aims to promote its investment in the local Bank for Investment and Development of Vietnam (BIDV) into a strategic partnership and make it an example of Vietnam-South Korea economic cooperation.
|Deputy Prime Minister Le Minh Khai (r) presents a souvenir to KEB Hana Bank President Park Sung-Ho. Source: VGP|
President of KEB Hana Bank Park Sung-Ho stressed the view in a meeting with Vietnam’s Deputy Prime Minister Le Minh Khai today [April 27], expecting to further contribute to bilateral relations.
At the meeting, Khai noted South Korea remains a top partner for Vietnam in various economic fields, for which the country aims to deepen the relations, especially in economy, trade, and investment.
He said Vietnam’s economy rebounded strongly in the first quarter following the severe impacts of the Covid-19 pandemic last year.
This has contributed to a stable macro-economic foundation and put inflation under control, Khai said, referring to the consumer price index (CPI)’s expansion at a modest rate of 1.92% in the January-March period.
“The business community, including the foreign-invested sector with Hana Bank being an example, has contributed to this encouraging economic performance,” Hai added.
Khai also welcomed Hana’s business results in Vietnam and called for the South Korean bank to continue expanding investment activities in Vietnam beyond the banking sector.
“The Vietnamese Government is willing to create favorable conditions for South Korean companies, including Hana Bank, to commit to long-term business in the country,” Khai said.
With 2022 marking the 30th anniversary of Vietnam-South Korea diplomatic relations, Khai called for Hana Bank and BIDV to strengthen the partnership and contribute to deepening relations between the two countries.
In late 2019, KEB Hana Bank became the first foreign strategic shareholder of Vietnam’s leading bank BIDV with a 15% stake worth nearly VND20.3 trillion (US$875 million).
The deal, seen as the biggest in Vietnam’s banking industry, marked the first acquisition by a foreign financial institution of a considerable stake in a state-owned Vietnamese bank.
As part of the deal, KEB Hana Bank would own a 15% stake in BIDV with a holding period of at least five years. At the same time, BIDV receives long-term technical assistance from Hana Financial Group and KEB Hana Bank, including but not limited to six areas: strategic corporate governance; technology and digital banking; retail banking development; diversified asset portfolios; risk management; human resources training and development.