The presence of Daegu Bank in HCM City is welcome as a large number of Korean businesses invest in the southern metropolis. — Photo dgb.co.kr

Daegu Bank of the Republic of Korea (RoK) is preparing to open a branch in HCM City after getting the green light from the State Bank of Viet Nam (SBV).

Under a document released late last week, SBV approved in principle the establishment of Daegu Bank’s HCM City branch.

The Korean bank is responsible for completing procedures in accordance with the SBV’s regulations and instructions to submit to the SBV’s Governor for consideration and decision on licensing the establishment of the branch, the SBV stated in the document.

The presence of the bank in HCM City is welcomed as a large number of Korean businesses invest in the southern metropolis.

Korean investment in Viet Nam has expanded over the years with a rise of 37 per cent each year, making Korea the largest foreign investor among the 132 countries and territories investing in Viet Nam, at US$80 billion by the end of November 2019. Viet Nam is also the biggest investment recipient among ASEAN countries.

The Korea Trade and Investment Promotion Agency (KOTRA) forecast the wave of Korean investment in Viet Nam is continuing as the Southeast Asian nation is considered a favourable investment destination for Korean investors.

KOTRA reported that Korean firms have high hopes for Viet Nam’s growth potential and highly evaluate the skills and diligence of workers.

Besides Korean banks, foreign finance institutions from other countries are also promoting their in-depth development in the Vietnamese market. The country currently houses nine foreign-owned banks, about 50 foreign bank branches, more than 50 representative offices of foreign credit institutions and many foreign-owned finance companies. — VNS