Measuring the potential of foreign banks, the surprising position of two 'new recruits'

Besides 35 domestic commercial banks, according to statistics, there are 9 100% foreign-owned banks and 2 joint venture banks operating in Vietnam.

There are 9 100% foreign-owned banks operating in Vietnam, including: Woori Bank, HSBC, Standard Chartered, ANZ, Hong Leong, Shinhan, Public Bank, CIMB and UOB Vietnam.

In addition, there are two joint venture banks: Indovina Bank (IVB) and Vietnam - Russia Bank (VRB).

The total charter capital of the above banks is about more than 65,000 billion VND. Of which, the bank from Korea, Woori Bank , is leading in charter capital scale with 12,500 billion VND.

Starting to establish its headquarters in Hanoi in 2017 under the legal name of Woori Bank Vietnam Limited, with a charter capital of 3,000 billion VND, by 2024, Woori Bank has become the bank with the largest charter capital among foreign banks in Vietnam after increasing its capital to 12,500 billion VND.

This "giant" from Korea is also showing its ambition to expand its market share, especially retail banking market share, in Vietnam after establishing headquarters in both Hanoi and Ho Chi Minh City.

Along with that, Woori Bank has established branches and transaction offices in localities attracting many Korean FDI enterprises such as Da Nang, Ha Nam, Bien Hoa, Vinh Phuc, Thai Nguyen, Bac Ninh, Binh Duong ...

HSBC is one of the foreign banks operating in Vietnam for a long time. Photo: HSBC

Ranked second in terms of charter capital is UOB Vietnam Bank Limited. This bank has been operating as an independent bank in Vietnam since 2018 and is a subsidiary of UOB Bank in Singapore.

By 2023, the State Bank of Vietnam approved UOB Vietnam to increase its charter capital to VND8,000 billion.

The third bank with charter capital of VND 7,528 billion is HSBC Vietnam .

This British bank became the first bank to establish a subsidiary in Vietnam in 2009, headquartered in Ho Chi Minh City.

In fact, HSBC opened its first office in Saigon (now Ho Chi Minh City) in 1870, and in 1995, the branch in Ho Chi Minh City was licensed to operate and provide full banking and financial services. HSBC opened its second branch in Hanoi and established a representative office in Can Tho City in 2005.

Similar to HSBC, its "compatriot" Standard Chartered set foot in Vietnam in 1904.

In 2009, Standard Chartered Bank (Vietnam) Limited - a 100% foreign-owned bank under Standard Chartered, officially came into operation.

In 2023, Standard Chartered Vietnam will increase its charter capital to VND6,954.9 billion, ranking fourth among foreign banks in Vietnam in terms of charter capital size.

Meanwhile, Public Bank Vietnam - a bank from Malaysia, ranked fifth in terms of charter capital with VND6,000 billion.

Public Bank Vietnam was converted from VID Public Joint Venture Bank - one of the first joint venture banks in Vietnam, established in 1992 with a capital contribution ratio of 50:50 between BIDV and Public Bank Berhad, Malaysia.

Public Bank Vietnam currently has a network of 40 branches and transaction offices, with a staff of up to 1,000 people, becoming the bank with the largest network of branches and transaction offices among foreign banks.

Another bank from Korea is Shinhan Vietnam . The bank has a charter capital of VND 5,709.9 billion and operates under a group model.

Like Woori Bank, Shinhan Vietnam is known as a foreign bank with strength in the retail banking sector in Vietnam.

Previously, in 2017, Shinhan Vietnam received the transfer of retail banking services from ANZ Bank Vietnam.

Regarding ANZ Vietnam , in September 2024, this bank from Australia and New Zealand was approved to increase its charter capital to VND 5,000 billion.

Despite its modest charter capital, ANZ is one of the first foreign banks to operate in Vietnam since 1993. In 2008, the State Bank of Vietnam granted ANZ a license to establish a 100% foreign-owned commercial bank in Vietnam.

After transferring the entire retail banking segment to Shinhan Bank, ANZ Vietnam only provides financial services to multinational enterprises, large domestic enterprises and financial institutions.

Behind ANZ Vietnam in terms of charter capital is CIMB Vietnam - a bank belonging to Malaysia's CIMB Financial Group, established in Vietnam since 2016.

In 2024, CIMB Vietnam will increase its charter capital to VND 4,013.2 billion, operating in the field of providing banking services to individual and corporate customers.

Last on the list is Hong Leong Vietnam , also a bank from Malaysia, with a charter capital of 3,000 billion VND.

In December 2008, Hong Leong became the first bank in Malaysia and Southeast Asia to be granted a license to establish a 100% foreign-owned commercial bank in Vietnam.

In addition to the 9 100% foreign-owned banks mentioned above, there are two joint venture banks in Vietnam, Indovina (IVB) and Vietnam - Russia Bank (VRB), with charter capital of VND 3,377.5 billion and VND 3,008.4 billion, respectively (data as of September 30, 2024 according to the State Bank).

In which, IVB is a joint venture between VietinBank and Cathay United Bank (CUB) of Taiwan with a capital contribution ratio of 50:50 (each side contributes 96.5 million USD).

VRB is a joint venture between three parties, including BIDV and VTB Bank (formerly Vneshtorgbank, the Russian Foreign Trade Bank) with equal capital contributions (both 49.5% of charter capital) and Equipment and Communications Joint Stock Company (NGS) with a capital contribution of 1% of charter capital.

Source: https://vietnamnet.vn/do-tiem-luc-ngan-hang-ngoai-bat-ngo-vi-the-hai-tan-binh-2413369.html