Australian bank to buy 15 percent stake in VIB
Under the agreement, the Commonwealth Bank (CBA) will take a 15 percent stake in the Vietnam International Bank (VIB). The CBA intends to request an increase in investment to 20 percent at its earliest opportunity.
The investment is important to the development of the relationship between VIB and CBA. Under a technical support programme reached previously, CBA has sent banking experts to VIB to identify skills gaps and opportunities in critical business areas, including retail banking, rish management, human resources, IT, treasury and finance.
As part of the strategic partnership, a longer-term capitality transfer programme (CTP) will be established to further enhance the operational and commercial capabilities of VIB.
The two sides will also engage in an ongoing working partnership to investigate other business opportunities. CBA has extensive experience in CTP with a strong track record of commitments in China.
Han Ngoc Vu, Chairman of VIB, said, “The Commonwealth Bank’s track record in China is a great indication of how it works with strategic partners in Asia to create long-term sustainable value to a business.”
“For VIB, a strategic partnership and CTP with such a strong and trusted financial institution as the Commonwealth Bank, will help us improve our competitiveness in the fast growing financial service industry in Vietnam .”
VIB achieved a compound annual asset growth rate of more than 40 percent in the past five years and branches have grown from 30 to 117, said Vu.
Simon Blair, Head of International Financial Services at CBA, said that despite several years of challenging economic times around the world, Vietnam had remained in a good position for long-term growth. “We wanted to participate in and support that growth,” he said./.