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| The potential strategic investor of Bank for Investment and Development of Vietnam is Korea’s KEB Hana Bank. - Photo BIDV |
Viet Nam News
HÀ NỘI — The potential strategic investor of Bank for Investment and Development of Vietnam (BIDV) is Korea’s KEB Hana Bank, reported Viet Capital Securities Company (VCSC).
In a report on BIDV, which is one of Việt Nam’s four largest State-run commercial banks, VCSC said the prospect of finding strategic investors of BIDV after eight years was gradually clear, adding that the transaction, if successful, will be an important factor to bring BIDV closer to Basel II standards as required by the central bank.
Earlier, Business Korea reported that KEB Hana Bank had decided to expand its business in Việt Nam by acquiring a stake in BIDV. KEB Hana Bank is going forward with the acquisition and is reportedly close to signing a deal.
The deal will proceed in a way that BIDV will raise new capital through a capital increase to improve its financial structure, and Hana Bank will purchase the new shares. According to a source, the only remaining process is the approval of State Bank of Việt Nam while the work is being finalised.
BIDV started as Vietnamese Construction Bank in 1957. Until 1994, it was operated mainly by the Government. Since 1995, the bank has been actively offering financing, credit, financial and non-financial services as a commercial bank. It has played the role of an agency for the management of funds with domestic and foreign financial institutions.
Earlier this year, KEB Hana Bank chairman Kim Jung Tai met Deputy Prime Minister Vương Đình Huệ. Tai emphasised the need for co-operation between Hana Bank and BIDV and said the two banks would create good business opportunities if they continued to maintain a partnership in financial technology and mobile payment, among others, in Việt Nam. — VNS
