Shinhan, Woori, Mirae Asset help virus-hit Vietnam

Shinhan Bank Vietnam's main branch in Ho Chi Minh City / Courtesy of Shinhan Financial Group

By Park Jae-hyuk

Shinhan and Woori banks and Mirae Asset Capital have had their names added to a list of 50 financial companies that are helping their customers in Vietnam overcome difficulties from the COVID-19 pandemic, according to the State Bank of Vietnam (SBV), Monday.

The Vietnamese central bank recently published the list of domestic and foreign banks, and leasing companies that have made efforts to support customers affected by the coronavirus.

The list included the three Korean financial services firms, along with large domestic banks ―Vietcombank, VietinBank, Agribank and BIDV ― and global financial giants ― Citibank, Standard Chartered and BNP Paribas.

According to the SBV, the Southeast Asian country has suffered a growing loan balance since the outbreak of the pandemic.

In response, the central bank urged both domestic and foreign banks to take measures to support virus-hit businesses and individuals. It specifically called for the banks to defer principal and interest repayments, cut interest and commission rates and maintain their asset quality.

“We also required credit institutions to cut costs and reduce salaries and bonuses, without paying cash dividends, in order to reduce lending interest rates and share difficulties with businesses,” SBV Governor Le Minh Hung was quoted as saying by Vietnamese news outlets.

Although the Korean financial firms have offered a massive amount of financial support to businesses in Korea, they decided to comply with the SBV's request in order to fulfill their social responsibility in Vietnam where they have made handsome profits.

As the foreign bank with the largest number of branches there (36), Shinhan Bank Vietnam posted a 124.3 billion won ($102 million) net income in 2019, up 30.9 percent from a year earlier.

Woori Bank Vietnam's net profit soared 30.7 percent to 14 billion won last year.

Mirae Asset Finance Company, the Vietnamese subsidiary of Mirae Asset Capital, has also seen rapid growth in its assets ― from 40 billion won in 2016 to 280 billion won in 2019.

In addition to financial support for enterprises, Shinhan donated 5 billion dong ($214,000) to the Vietnamese government. It also bought 7,000 watermelons from Vietnamese farmers and gave protective gear to medical workers and service members there.

“Not only in Korea but also in other countries, we are continuously making efforts to become a well-respected bank that supports a country's development,” a Shinhan official said.

Their efforts are expected to consolidate ties between Korea and Vietnam, which have weakened since the spread of the coronavirus worldwide.

In both countries, public sentiment has worsened toward each other, after Korean tourists complained about the quality of food served to them when they were quarantined there in February, and Vietnamese internet users retaliated with a deformed image of the Korean national flag reminding people of the coronavirus.