Shinhan consolidating presence in Vietnam

By Kim Bo-eun

Shinhan Financial Group Chairman Cho Yong-byoung

Shinhan Bank is showing prominence as the top foreign bank in Vietnam, as it continues to expand there.

Shinhan Bank recorded 95 billion won in net profit last year, which is similar to the scale of net profit of Shinhan group's affiliate companies.

Shinhan Bank's Vietnamese subsidiary, Shinhan Bank Vietnam, opened a branch in Ha Nam, south of Hanoi, this week.

It now has 32 branches in Vietnam, the largest number among foreign banks in the Southeast Asian country.

Shinhan plans to open four more by the end of this year, in the provinces of Ninh Binh, Nam Dinh and Thai Binh.

Earlier this month, Shinhan Bank Vietnam opened a private wealth management center in the Phu My Hung district of Ho Chi Minh City.

The PWM Phu My Hung Center is Shinhan's first branch that will focus solely on wealth management.

Shinhan became the first Korean bank to set up in Vietnam in 1993, when it opened an office there. Shinhan made the office its first subsidiary in 2009.

“Due to the long presence of Shinhan in Vietnam, we were able to accumulate experience and develop know-how and this was possible due to the efforts of Korean and Vietnamese employees there,” a Shinhan official said.

Shinhan aims to go beyond being the No.1 foreign bank and compete with major local banks.

Another Shinhan group affiliate, Shinhan Card, is also performing well in Vietnam. It is the seventh-largest player in the country's credit card market, up from 12th in 2011. Shinhan Card aims to become the fifth largest by 2020.

The card firm is readying for a new chapter after changing its name to Shinhan Vietnam Finance Company, following approval to acquire the Prudential Vietnam Financial Company earlier this year.

It is seeking to create synergy by cooperating with Shinhan Bank Vietnam in the consumer financial services sector.