VID Public to become foreign-owned
VID Public to become foreign-owned
The State Bank of Vietnam (SBV) has in principle given the greenlight to Public Bank Berhad (PBB) to turn VID Public, its joint venture in Vietnam co-owned with the Bank for Investment and Development of Vietnam Joint Stock Companay (BIDV), into a 100 per cent Malaysian-owned bank after acquiring BIDV’s stake.
PBB will become the sixth 100 per cent foreign-owned bank in Vietnam after HSBC Vietnam, Standard Chartered Vietnam, Shinhan Vietnam, ANZ Vietnam and Hong Leong.
Starting operation in May 1992, VID Public is one of the first joint-venture banks in Vietnam. As of now, it has the total chartered capital of $62.5 million and is present in major cities and provinces throughout the country. BIDV has previously owned a 50 per cent stake in the company. However, in July 2014, BIDV agreed to sell its entire stake in VID Public to PBB.
The divestment by BIDV complies with the current state policy initiative to restructure the banking sector. However, PBB’s purchase of the stake shows that foreign banks are interested in breaking into Vietnam.
Previously, Maybank, the biggest bank in Malaysia, became a strategic shareholder in An Binh Bank. Maybank currently has two branches, one in Hanoi and the other in Ho Chi Minh city.
According to SBV statistics, as of now, beside the above-mentioned six foreign-owned banks, Vietnam hosts four joint-venture banks, 51 branches and 51 offices of foreign banks.
