Shinhan Card expanding business in Vietnam

Shinhan Financial Group Chairman Cho Yong-byoung, fourth from left, poses with Shinhan Card CEO Lim Young-jin, fifth from left, and other Korean and Vietnamese officials, at Shinhan Vietnam Finance's launching ceremony in Ho Chi Minh City, Tuesday. / Courtesy of Shinhan Card

By Kim Bo-eun

Shinhan Card is accelerating its business in Vietnam, holding a launching ceremony for Shinhan Vietnam Finance Company (SVFC), Tuesday.

Shinhan Financial Group Chairman Cho Yong-byoung and Shinhan Card CEO Lim Young-jin were present at the event in Ho Chi Minh City.

SVFC is Shinhan Financial Group's global business division's first successful overseas M&A.

In January 2018, Shinhan received approval from Vietnam's financial authority to acquire 100 percent of Prudential Vietnam Finance Company (PVFC). PVFC was the U.K.-based Prudential financial services group's Vietnam unit, the first foreign consumer finance firm in Vietnam established in 2006. It had $270 million in assets, posted net profits of $11 million and had 300,000 customers as of the end of 2017.

Shinhan's expansion into Vietnam's consumer finance market comes in addition to its businesses in Kazakhstan, Indonesia and Myanmar.

SVFC currently ranks fourth in Vietnam's finance firm market.

Shinhan Card plans to expand SVFC's business to retail finance, with its non-banking financial institution license.

Shinhan also plans to apply its card unit's mobile platform, digital technology and big data-based marketing to SVFC. It is set to establish partnerships with local digital firms to expand its new project base.

SVFC is set to work with Shinhan's other units in Vietnam, including Shinhan Bank Vietnam ― the largest foreign company there.

“We are aiming to set up diverse business models through cooperation among group units, and continue to offer our utmost support to make Shinhan Financial Group Vietnam's best financial group,” Cho said.

Shinhan began its card business in Vietnam through its bank unit in 2011. At the time, it ranked 12th in Vietnam's credit card market but jumped to seventh. It is aiming to become fifth in the market by 2020.

Shinhan Card has 210,000 members in Vietnam, mostly Vietnamese, but also Koreans there.

It has been conducting marketing in partnership with 180 businesses where purchases can be made via Shinhan Card, including Vietnam's no. 1 online mall Shopee.

Shinhan Card has been utilizing not only existing channels such as bank branches, card sales personnel and telemarketing but also digital channels including Vietnam's no. 1 social media platform, Zalo.