The State Bank of Vietnam (SBV) – Ho Chi Minh Branch has allowed Kookmin Bank – Ho Chi Minh Branch to raise its registered capital from US$70 million to US$100 million, raising the total amount the South Korean bank pumped into its two branches in Vietnam to nearly US$100 million.
| South Korea-based Kookmin Bank pumped nearly US$100 million into its two branches in Vietnam. |
Previously, the SBV, the country’s central bank, had approved of Kookmin Bank – Hanoi Branch increasing its registered capital from US$35 million to US$100 million after one year of operation.
Kookmin Bank’s decision to raise its branches’ registered capital in just a short period of time indicates the bank’s optimism about business prospects in Vietnam.
Among foreign banks currently operating in Vietnam, South Korean banks have been actively expanding investment and operations, due to growing investment capital from South Korean firms to Vietnam.
In the first four months of 2020, South Korea took the first spot with regard to the number of investment projects in Vietnam with 265, followed by China with 135 and Japan with 116.
In early 2020, the Korea Chamber of Business in Vietnam (KorCham) requested the SBV to issue licenses for more South Korean banks to operate in Vietnam.
According to Korcham, a steady provision of capital from South Korean lenders is necessary for South Korean investors to invest in the country.
At a national online dialogue between Prime Minister Nguyen Xuan Phuc and the business community on May 9, Korcham Vice President Hong Sun said that South Korean enterprises held high regards for Vietnam’s efforts in improving the business environment.
Hong Sun said the Kocham is committed to encouraging high quality FDI inflows from South Korea to Vietnam.
“South Korean and Vietnamese firms would foster a stronger bond in establishing new supply chains amid the Covid-19 pandemic,” stated Hong Sun, adding South Korean firms would join Vietnam in its economic recovery efforts.
