AsemconnectVietnam - UOB Vietnam Bank has increased its charter capital from VND5,000 billion to VND8,000 billion through capital injection from parent bank UOB in Singapore.

This charter capital increase has been approved by the State Bank of Vietnam according to Official Dispatch No. 9150/NHNN-TTGSNH dated November 28, 2023.
This is the second charter capital increase in the past 3 years of UOB Vietnam Bank, demonstrating the Bank's strong commitment to investing for long-term growth in Vietnam and contributing to development of the economy. This capital increase will also contribute to helping the Bank achieve its strategic goals over the next five years, with a specific focus on promoting retail banking business in addition to wholesale banking services.
Mr. Victor Ngo, General Director of UOB Vietnam, said: "Vietnam is a strategic market for UOB in ASEAN. The decision to increase capital is a testament to our long-term commitment to Vietnam's prosperous development as well as our belief in the country's great potential. With this additional capital, we are better able to support the growth of our retail business as well as drive sustainable development and continue to deliver outstanding value to our customers. This will help us realize our ambition of becoming one of the leading retail and foreign banks in Vietnam."
2023 marks UOB's 30th year of presence in Vietnam. The Bank has grown from a representative office of only 3 employees to a 100% foreign-owned subsidiary bank with more than 1,300 employees and 5 branches in Ho Chi Minh City and Hanoi. Despite the challenges caused by the pandemic, UOB Vietnam Bank still maintains a stable growth rate, with total assets reaching a growth rate of over 30% over the past 5 years (2018-2022).
In March 2023, UOB completed the acquisition of Citigroup's retail banking business in Vietnam, thereby doubling outstanding loans and deposits, tripling the Bank's retail customer base. This strategic deal also helps the Bank provide a comprehensive set of unsecured lending products to customers, including credit cards and personal unsecured loans, in addition to existing secured loans such as home loans and car loans. The bank also expanded its partnerships globally to deliver enhanced benefits to a broader customer base across the region.
This increase in charter capital will help UOB Vietnam accelerate growth in the retail segment, expand its customer base and increase market share. In addition, the capital increase will also create favorable conditions to promote business activities in the wholesale segment, supporting business customers throughout their supply chain to capture business opportunities as well as as promoting their sustainable development goals.
Since signing a Memorandum of Understanding (MOU) with the Foreign Investment Agency, Ministry of Planning and Investment of Vietnam in April 2015, UOB's Foreign Direct Investment Advisory (FDIA) unit has supported More than 290 companies invested in Vietnam, contributing an estimated investment of about 6.3 billion Singapore dollars (equivalent to VND113,866 billion) and creating conditions to create about 57,000 job opportunities in Vietnam.
In the coming time, UOB Vietnam Bank said it will continue to support foreign investment businesses and local businesses, to create favorable conditions for the growing flow of commercial capital and investment into Vietnam. Recently, UOB extended the MOU with the Foreign Investment Agency, focusing on attracting high-quality FDI capital into Vietnam, promoting job creation, especially in the fields of high technology, digitalization, green and sustainable growth, new energy, semiconductors and finance.
With Vietnam's commitment to achieving net zero emissions by 2050, UOB aims to support green projects, accelerating the transformation of the domestic economy. By providing green financial solutions and accelerating the transition to a circular economy, UOB aims to contribute to helping Vietnam achieve its net zero emissions target by 2050.
UOB Vietnam Bank is committed to contributing to the community while focusing on developing business activities in Vietnam over the past 30 years and beyond.
N.Nga
Source: VITIC/Tinnhanhchungkhoan