Cashing in: Vietnamese bank buys out Australian partner in Saigon

By Le Chi   July 3, 2017 | 05:40 am PT
Cashing in: Vietnamese bank buys out Australian partner in Saigon
People walk past an office of VIB in Vietnam. Photo by VnExpress
VIB's deal with the Commonwealth Bank of Australia is the first of its kind in the country.

The Vietnam International Commercial Joint Stock Bank (VIB) and Commonwealth Bank of Australia (CBA) signed a deal on Monday for  VIB to take over the Ho Chi Minh City branch of CBA.

Without revealing any information regarding the value of the deal, VIB said that the transfer will be completed in the next few months.

CBA currently holds a 20 percent stake in VIB, so the deal is expected to benefit customers of both banks.

Han Ngoc Vu, CEO of VIB, said the system and staff at the CBA-HCMC branch would remain the same to allay concerns of its 22,000 customers in the city.

With 160 branches in 27 cities and provinces across Vietnam, the deal should allow more people outside HCMC to access CBA's services, such as opening accounts to study in Australia and transferring money between the two countries, he said.

According to the State Bank of Vietnam, this is the first time a local lender has taken over a branch belonging to a foreign bank.

The Australian bank entered Vietnam in 1994 with a representative office, before opening the HCMC branch in 2008.

According to data posted on its website, VIB has become one of the leading commercial joint stock banks in Vietnam, with total assets of more than VND100 trillion ($4.4 billion).

The bank’s charter capital stands at VND5.64 billion, while its shareholders’ equity is worth nearly VND9 trillion.

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