Shinhan targets merging of 2 Vietnamese units

The bank to tap Vietnam’s high growth potential in terms of financial services as 15% of its population has bank account.

Shinhan Financial Group has decided to merge two subsidiaries in Vietnam as it expands its overseas business.

Shinhan Financial approved a plan to merge Shinhan Bank’s two subsidiaries in Vietnam - Shinhan Vietnam Bank and Shinhan Vina Bank - during a recent board meeting.

Shinhan Bank has reported the plan to the Financial Services Commission and plans to seek approval from the Vietnamese government.

Shinhan Vietnam Bank is a 100 percent subsidiary of Shinhan Bank. Shinhan Vina Bank is jointly owned by Shinhan Bank and the state-run Vietcombank in a 50/50 joint venture.

Shinhan Bank will acquire the 50 percent stake held by Vietcombank in Shinhan Vina Bank and then merge it with Shinhan Vietnam Bank.

An official at Shinhan Bank explained that the merger of the two banks will result in cost savings due to a reduction in the labor force, while speeding up the decision-making process.

View the full story in JoongAng Daily.