Singapore’s third largest lender, United Overseas Bank, has received preliminary approval from the State Bank of Vietnam to establish a foreign-owned subsidiary bank in the country.
The preliminary approval is a coup for United Overseas Bank (UOB) who will be the first bank from Singapore to be granted a foreign-owned subsidiary bank licence. UOB made a commitment to Vietnam over 22 years ago and looks bound to benefit from that early move.
Vietnam, a rapidly growing country with a population in excess of 91 million, and an increasingly significant manufacturing hub for global firms, could prove to be a significant hinterland for the Singaporean bank.
In 2013, UOB set up a dedicated Foreign Direct Investment (FDI) Advisory Unit in Vietnam, to offer seamless and integrated services to its clients expanding their businesses within the country.
Branch Network to Come
The announcement of the preliminary approval was made by the State Bank of Vietnam during an official visit to the country by Singapore’s Prime Minister, Lee Hsien Loong.
«We were the first Singapore bank to open a foreign bank branch in Vietnam in 1995 and since then have maintained an unwavering commitment to the country,» said Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB.
The State Bank of Vietnam has said it will issue UOB an in-principle approval for the FOSB licence by June 2017. Under the licence, the Bank will be able to expand its branch network in Vietnam.
