Shinhan Financial units to reside under one roof in Vietnam
Jae-Won Park
Jun 11, 2024 (Gmt+09:00)
Shinhan Financial Group's headquarters building (Courtesy of Shinhan Fiancial) Shinhan Financial Group Co. is upping the ante in the Vietnamese financial market to further widen the gap with rivals as the country’s leading foreign bank by grouping its core five units under one roof in Ho Chi Minh.
According to the financial industry on Monday, Shinhan Financial will relocate its five businesses into a major office building in Thu Duc City, the financial district in Ho Chi Minh.
Shinhan Bank Vietnam Ltd. already moved into the building in April, and four other Shinhan units – credit card, securities, life insurance and digital solution (DS) – will join the banking unit in the building by July.
The five operations are currently spread over different locations in Vietnam.
With the new home for its units, Shinhan Financial hopes to create greater synergy among the affiliates by reinforcing their collaboration in Vietnam, its key overseas market, said an official from Shinhan Financial.
Shinhan Bank Vietnam logo VIETNAM’S NO. 1 FOREIGN BANK
The leading Korean financial group advanced into the Southeast Asian country in 2009 with the establishment of Shinhan Bank Vietnam.
It is considered the most successful Korean financial company in terms of attracting local customers, instead of just catering to Korean clients operating in the country. It is the country’s No. 1 foreign bank.
The Korean financial group also launched Future Bank Group, its local digitalization service in Vietnam, which can make independent decisions about digital strategies, accelerating the digitalization of its business in the country.
It was the first such Korean financial company in overseas markets.
Shinhan Bank Co. acquired Shinhan Vina Bank in Vietnam in 2011 to become Shinhan Bank Vietnam, and Australia-headquartered ANZ’s retail banking operations in 2017, solidifying its leading position in the Southeast Asian country.
(Graphics by Sunny Park) Shinhan Bank Vietnam operates 50 branches across Vietnam, and it hires a local staff of 4,000, including those working for securities and credit card services, Shinhan Financial Chairman Jin Ok-dong said last month.
The Vietnamese unit's net profit reached 232.8 billion won ($169.1 million) in 2023, marking the biggest profit for Shinhan Financial’s offshore entity. This was also an 82% jump from 2021.
Shinhan Bank Vietnam is also expected to report stellar performance this year, given its net profit of 66.4 billion won in the first three months of this year.
With the five affiliates in one place, Shinhan Financial will foster the growth of its overall business in Vietnam by repeating the success of its banking unit partnering with other non-banking siblings.
Shinhan Card Co. will foray into the retail finance sector with a license obtained through its acquisition of Prudential plc’s consumer finance business in Vietnam, Prudential Vietnam Finance Company Ltd. (PVFC), in 2018.
Shinhan Securities Co., which focuses on investment banking in Vietnam, will also expand its footing into the country’s retail stock market.