A number of banks and wealth managers, including those from outside the Asia region, have pushed into the Vietnam market in recent years. The country has been one of the brighter stars of emerging markets in Asia.
United Overseas Bank is boosting its charter capital for its Vietnam operations to VND5 trillion ($219 million) from VND3 trillion following clearance from regulators in the Southeast Asian nation.
The Singapore-based bank said that the charter capital increase was part of its “long-term commitment” to Vietnam’s economic growth. Approval for the move was granted by the State Bank of Vietnam.
“We have grown from a representative office in 1993 to a wholly-owned subsidiary bank in 2018. Over the last three years, UOB Vietnam has grown steadily and achieved a 53 per cent compounded annual growth rate in assets. The increased capital base will enable us to support existing and new customers in Vietnam through our progressive solutions and the connectivity we offer across UOB Group’s regional network,” Wee Ee Cheong, deputy chairman and chief executive, UOB, said.
As reported earlier this year, UOB Asset Management has completed its purchase of VAM Fund Management. The deal was another case of financial firms pushing into the Southeast Asian country, seen as one of the brighter stars in the region.
For its work with individuals, UOB has a strategic bancassurance alliance with Prudential Vietnam Assurance, offering Prudential’s life insurance products. For small- and medium-sized enterprises, the bank’s digital unsecured lending programme, UOB BizMerchant, offers online merchants access to collateral-free loans.
In 2021, UOB Vietnam also launched its inaugural Management Associate Programme to nurture the next generation of banking leaders in Vietnam.