Banks of the Republic of Korea (RoK) are accelerating efforts to capture business opportunity in Viet Nam – a fast-growing market.

Illustrative image (Source: Internet)

The country’s four major banks, namely Shinhan, KB Kookmin, KEB Hana and Woori, reported a total net profit of 132 million USD from business in Viet Nam last year.

Shinhan has led efforts to establish a presence in Viet Nam, entering the country in 1993. It now has 32 branches in Vietnam – the largest number among foreign banks in the country.

The bank generated 96.6 billion won (81.7 million USD) in net profit in 2018, which was 26 percent of Shinhan's global net profit.

KB Kookmin Bank has two branches in Viet Nam and Woori Bank nine.

The banks, which mainly offer corporate loans, are seeking to expand into retail finance. They are also planning to increase the portion of Vietnamese customers, as they have mainly been tending to Korean customers there.

Meanwhile, KEB Hana Bank said recently that it acquired 15 percent of the Bank for Investment and Development of Viet nam (BIDV)'s shares, at a cost of 1.25 trillion won. BIDV is Viet Nam's largest bank by assets.

KEB Hana Bank's investment is set to help expand its business into retail finance, as well as boost its digital banking and risk management capabilities.

It has two branches in Viet Nam ― one in Ha Noi and the other in Ho Chi Minh.

(Source: VNA)