South Korean commercial banks are making aggressive moves to expand business in Vietnam where demand for financial service has been growing amid booming economy. Vietnam’s economy has expanded by an annual average of 5 percent in recent years, drawing over 6,500 Korean companies to launch business in the Southeast Asian country.

Shinhan Bank Vietnam, a local subsidiary of Shinhan Bank that acquired Australia-based ANZ’s retail business in Vietnam last year, said on Thursday that it has recently opened four more branches to increase its outpost to 30. The lender with 1,500 on the payroll plans to open up five more outlets next year with an aim to bolster the share of consumer financing from current 45 percent to 50 percent.

Shinhan Bank Vietnam, which raised $56 million in net profit last year, also plans to expand its personal wealth management service in the country as part of localization efforts.

Woori Bank Vietnam, which established a local corporation in January, last year, will open six additional branches this year in addition to the three that are currently under operation. Woori Bank Vietnam will expand its personal financial service on top to corporate finance service by managing 20 branches in the mid- to long-term.

Industrial Bank of Korea, which has a branch each in Hanoi and Ho Chi Minh, will establish a local entity in the country to go aggressive.

KB Kookmin Bank, which manages a branch in Ho Chi Minh, is also planning to upgrade its office in Hanoi into a branch. The bank is reportedly considering acquiring a local bank to localize its overseas entity.

NH Nonghyup Bank, which has a branch and office in Hanoi, is also considering opening a branch in Ho Chi Minh and localizing the entity into a corporation in the long term. BNK Busan Bank and DGB Daegu Bank are also planning to open branches in Hanoi.

By Kim Tae-sung and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]