Vietnamese banks remain attractive to investors

HANOI: Vietnamese banks are still attractive to foreign investors thanks to the country’s economy and its strong resilience to the unprecedented difficulties and challenges caused by the Covid-19 pandemic.

With Fitch Ratings dropping Vietnam’s overall outlook from “stable” to “positive”, several Vietnamese banks were also rated positively by the international rating agency.

The rating confirmed the strength of Vietnamese banks to adapt and maintain stability even in difficult times.

Despite the hardships caused by the pandemic, Vietnam is still viewed as a bright spot in the global economy. According to a recent analysis, the Asian Development Bank estimated that the Vietnamese economy will experience strong growth this year at 6.7% and 7% in 2022 despite the resurgence of Covid-19.

Many Vietnamese banks have also become more active in seeking foreign partners in order to achieve their goals and strategies.

VPBank signed a deal in April to sell a 49% stake in FE Credit to Japanese group Sumitomo Mitsui Finance (SMFG) in a deal that values ​​the non-bank lender at $ 2.8 billion (RM 11.6 billion) .

Through this transaction, FE Credit is expected to benefit from support in terms of capital resources, management capacity and experience in the consumer credit sector in Asia from the SMBC group, in particular SMBCCF – a credit company consumer leader in the Japanese market.

At the same time, this transaction will add a large amount of capital to VPBank, helping to improve the financial potential of the bank to seize new investment opportunities in the market.

At SHB, to find and select foreign investors capable of supporting and bringing the best benefits to the bank as well as to its shareholders and clients, the general meeting of shareholders of SHB recently approved the fixing of the ownership rate. 10% foreign exchange to find and select strategic partners. .

The bank also approved that the bank’s foreign strategic investor ownership ratio should not exceed 20% of the registered capital.

Nguyen Van Le, managing director of SHB, said that there are now several financial groups, banks and large investment funds around the world who want to become investors in SHB.

SHB also planned to issue international bonds with a total value of US $ 500 million (RM 2.1 billion) with a term of three to five years.

According to Lê, for shareholders, issuing bonds in the international market not only increases profit margins and adds value to shareholders through the dividend plan, but also helps improve the value of each shareholder over the long term. – Viet Nam News / ANN

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