The Hana Financial Group has decided to expand its business in Viet Nam by acquiring a stake in Bank for Investment and Development of Vietnam (BIDV).

BIDV is one of Viet Nam’s four State-run commercial banks.

Business Korea quoted a local financial official that KEB Hana Bank was going forward with the acquisition and was reportedly close to signing a deal.

The deal will proceed in a way that BIDV will raise new capital through capital increase to improve its financial structure, and Hana Bank will purchase the new shares. According to a source, the only remaining process was to receive the approval of the State Bank of Viet Nam while the work was being finalised.

BIDV started as Vietnamese Construction Bank in 1957. Until 1994, BIDV was operated mainly by the Government. Since 1995, the bank has been actively offering financing, credit, financial and non-financial services as a commercial bank. It has played the role of an agency for the management of funds with domestic and foreign financial institutions.

In fact, earlier this year, KEB Hana Bank chairman Kim met Vietnamese Deputy Prime Minister Vuong Dinh Hue, local media reported. Kim emphasised the need for co-operation between Hana Bank and BIDV and said the two companies would create good business opportunities if they continued to maintain partnership in fintech and mobile payment, among others, in Viet Nam. — VNS