Shinhan Financial Group decided to purchase 100% of Prudential’s consumer finance business Prudential Vietnam Finance Company (PVFC) for Won161.4 billion (US$150.8 million).
Prudential decided to sell its finance business unit in Vietnam.
|
PVFC is a wholly foreign-owned company and operating in Vietnam since October 2017. In 2016, the company reached revenue of Won77.15 billion (US$72 million) and profit of Won13.15 billion (US$12.27 million).
Prudential is known as one of the leading life insurers in Vietnam. It entered Vietnam in 1995 with a representative office and began operations in 1999. Apart from the insurance sector, Prudential also operates in the field of asset management.
Since October 2017, Prudential has been negotiating on a potential sale of its finance business unit in Vietnam. After selling PVFC, Prudential remains fully committed to the Vietnamese market through its life insurance business, Prudential Vietnam Assurance Private Limited, and asset management business, Eastspring Investments Fund Management Company (Vietnam).
Prudential’s life insurance business is considered at a small scale compared to other countries such as Hong Kong, Singapore, China and Indonesia.
The move is in line with strategies of some global insurance companies, including AXA (France) in selling non core business units in Asia to focus on insurance market, which has high potential and is under fierce competition.
PVFC is one of 4 companies dominating the credit consumer market in Vietnam, along with FE Credit, HomeCredit and HDSaison. By the end of 2016, total outstanding loans of these companies are VND56 trillion (US$2.4 billion), according to StoxPlus’ report.
In 2017, Military Bank (MB) announced the decision of selling 49% shares at Mcredit to Japanese Shinsei Bank for VND615 billion (US$27 million) in return. Mcredit has chartered capital of VND500 billion (US$22 million) which was later renamed to MB Shinsei. At present, MB still holds 50% of chartered capital at MB Shinsei.
Previoiusly, Techcombank also decided to divest all fund at TechcomFinance. Lotte Card, a subsidiary of Lotte Group has agreed to purchase shares of TechcomFinance, according to Korean media. This deal will help Lotte Card to tap in Vietnam’s financial market.
On February 2018, Vietnam Posts and Telecommunication Group (VNPT) set to sell its finance subsidiary Post and Telecommunication Finance Company (PTF) through an auction for an initial price of VND500 billion (US$22 million).
Korean Shinhan Financial Group is present in Vietnam with Shinhan Bank. Shinhan Card is the global top-five credit card company. It was established in 1990 as a technical and business company licensed by Shinhan Bank.
