The State Bank of Viet Nam (SBV) on Tuesday gave its in-principle approval for expansion of leasing business between the Bank for Investment and Development of Viet Nam (BIDV) and Sumitomo Mitsui Trust Bank (SMTB).

The SuMi TRUST will invest 49 per cent of the total equity of its subsidiary BIDV Financial Leasing Company (BLC).

The new joint venture will be called BIDV-SuMi TRUST Leasing Company (BSL).

SMTB was the largest trust bank in Japan with total assets of US$585.4 billion by the end of September 2016. Its owner equity is $19.9 billion.

BIDV and SMTB have co-operated since 2013 to study and develop many business projects, training and technological transfer.

On April 29, 2016, the two sides signed an agreement in the financial leasing sector to transfer BLC into BSL, while increasing charter capital from its current VND448 billion to VND896 billion to improve financial ability and meet development demands.

BSL is expected to provide competitive, attractive and convenient financial leasing products to the market, thanks to SMTB’s support by establishing relationships with Japanese suppliers, as well as BIDV’s nationwide network.

BSL is the first financial leasing company in Việt Nam to apply a joint venture model between a local commercial bank and a foreign financial institution.

BSL will contribute to BIDV’s diversified products to better serve customers’ demand in credit, insurance and security financial leasing. — VNS