Representatives of BIDV and Public Bank Berhad conclude a stake transfer contract in Ha Noi on July 15. — Photo thoibaonganhang.vn

HA NOI (Biz Hub) ─ The Bank for Investment and Development of Viet Nam (BIDV) will transfer its 50 per cent stake at the VID Public Bank to Malaysia's Public Bank Berhad.

Representatives of BIDV and Public Bank Berhad signed a contract for this at the development bank's headquarters in Ha Noi on Tuesday, and they will soon send the contract to the State Bank of Viet Nam for approval.

The VID Public Bank, with US$62.5 million in equity, was established in 1992 as a 50/50 joint venture between BIDV and the Malaysian bank, as the two nations aimed to foster economic cooperation, especially in areas of trade and investment.

The stake transfer was approved in principle by the Government late last year, in line with the national plans to restructure the financial system. After the transaction is completed, the joint venture will become a wholly-Malaysian invested institution.

BIDV chairman Tran Bac Ha said the VID Public Bank has shown sustained growth and helping bridge businesses in the two countries, and the BIDV and the Public Bank Berhad will continue to spur comprehensive and long-term cooperation in providing payment and other financial services.

The VID Public Bank has total assets of over $356 million with outstanding loans of over $222 million. It has the largest network among joint venture banks in Viet Nam, according to a BIDV news release. ─ VNS