The State Bank of Viet Nam has licensed for BIDV-SuMi TRUST Leasing Company, the first finance leasing joint venture between a local bank and a foreign financial institution in the country.

This was stated by SBV on its website on Monday.

BIDV-SuMi TRUST Leasing Company has charter capital of VND895.6 billion (US$39.28 million). It will provide all products and services of a finance leasing company according to the current legal regulations.

BIDV-SuMi TRUST Leasing Company is the conversion of BIDV Financial Leasing Co (BLC) into a joint venture. BLC was wholly owned by BIDV with charter capital of VND447.8 billion, and headquartered in HCM City.

The capital of the joint venture has been doubled to VND895.6 billion and the headquarters are in Ha Noi. BIDV holds 50 per cent stake, Sumitomo Mitsui 49 per cent and Sun Group 1 per cent.

BIDV said it has been in a strategic partnership with Sumitomo Mitsui since 2013. The two sides reached an agreement on co-operation in finance leasing in April 2016, under which BIDV would sell 49 per cent of its finance leasing arm to the Japanese partner.

With the joint venture, BIDV would be able to roll out financial packages that meet diverse needs of customers for credit, insurance, finance leasing and securities.

Sumitomo Mitsui is Japan’s largest trust bank with total assets of nearly 59.5 trillion yen ($585.4 billion) and equity of some 2.02 trillion yen ($19.9 billion) up till September 30, 2016. — VNS