BIDV sets up strategic partnership with Korean partner
18:36 | 13/11/2019
 VGP - The Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV) has officially signed the strategic cooperation agreement and announced KEB Hana Bank of the Republic of Korea as its foreign strategic shareholder who owns 15% of BIDV’s charter capital.

At the signing ceremony. Photo: VGP

Present at the signing ceremony include Deputy Prime Minister Vuong Dinh Hue, leaders of several Vietnamese agencies and Korean Ambassador in Viet Nam.

KEB Hana Bank officially became the first BIDV’s foreign strategic shareholder after the latter issued over 603.3 million shares as a private placement to the former with a total value of nearly VND20,300 billion.

After issuing shares to KEB Hana Bank, BIDV's charter capital increases from VND34,187 billion to VND40,220 billion - the highest in the Vietnamese banking system.

At the same time, BIDV receives a long-term technical assistance from Hana Financial Group and KEB Hana Bank, including but not limited to 6 areas: strategic corporate governance; technology and digital banking; retail banking development; diversified asset portfolios; risk management; human resources training and development.

This is the biggest M&A deal with a strategic investor in Viet Nam's banking industry and is a double transaction.

Addressing the ceremony, Ms. Nguyen Thi Hong, Deputy Governor of the State Bank of Viet Nam said cooperation between the two leading financial institutions of the two countries not only brings benefits to the two banks but also the business community of Viet Nam and the RoK.

KEB Hana Bank's large investment in Viet Nam is a clear testament to the optimism and confidence in the stability and development potential of Viet Nam’s economy and the finance and banking industry in general and BIDV in particular, Hong said.

Meanwhile, Korean Ambassador to Viet Nam Park Noh Wan expressed his belief that with this good start, the strategic partnership between BIDV and KEB Hana Bank will be fruitful and generate a great source of strength for the development of both sides.

The event is also a clear evidence of the increasingly better cooperation between Viet Nam and the ROK, he added.

Mr. Phan Duc Tu, Chairman of BIDV Board of Directors, said: The strategic partnership with Hana Financial Group is of great significance for BIDV, marking an important milestone in the bank’s development and international integration.

Established in 1957, BIDV is the largest lender in Viet Nam by total assets. The bank covers a wide range of operations including banking, insurance, securities and financial investment with a network of more than 1,000 branches and transaction offices and commercial presence in 6 countries and territories.

BIDV, currently serving 11 million customers, has established partnerships with 2,300 financial institutions around the world.

As of 30 September 2019, BIDV’s total assets hit VND1.43 quadrillion (equivalent to US$61 billion).

BIDV has made the list of Top 2,000 world largest companies (Forbes) for years; Top 500 world’s most valuable banking brands (Brand Finance); Best retail bank in Viet Nam for 5 consecutive years (The Asian Banker); Best SME bank in Viet Nam and many other awards./.

By Quang Minh

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