CIMB Group to set up network in Vietnam

CIMB has presence in most of the Asean countries. Shown here is the Singapore branch.

KUALA LUMPUR: CIMB Group Holdings Bhd plans to set up a branch network in Vietnam, with the first branch in Hanoi expected to be fully operational by the third quarter of next year.

The financial services group told Bursa Malaysia that it had received in-principle approval from the central bank, the State Bank of Vietnam, to offer banking services in the country.

The approval allows it to establish and operate a 100%-owned subsidiary, offering a comprehensive range of wholesale, commercial and consumer banking products and services to the nation of over 90 million people and its clients across Asean.

It expects to secure its full operating banking license by the third quarter of 2016.

With the approval, CIMB will be present in nine out of 10 Asean nations, the only exception being the Philippines. The group currently has over 44,000 employees located in 17 countries. 

CIMB group chief executive Tengku Datuk Zafrul Abdul Aziz said in a press statement: “We are delighted to receive the go-ahead from The State Bank of Vietnam. This approval allows us to expand our presence in Vietnam, a country that has shown resilient growth, backed by a large young population and growing middle class.

“With this foray into Vietnam, we will be able to further solidify our position as the leading Asean bank and offer the much needed regional connectivity to intermediate trade and investment flows.

“We also believe that the addition of a full banking license in Vietnam is timely as the region welcomes the commencement of the Asean Economic Community later this year.”

CIMB shares gained 1 sen to close at RM5.30 on Friday.