The bank will establish Hong Leong Bank Vietnam with a capital base of Vnd1 trillion ($58 million).
Group managing director Yvonne Chia said in a statement the group plans to expand its branch network over the next few years and ôgrow Hong Leong Bank Vietnam into an embedded local bank in Vietnamö.
The bank added that it wanted to tap into the promising and expanding Vietnamese market, which has a population of over 85 million people.
Of course, the timing of touting Vietnam's economy is a touch odd, as Vietnam has been battling an economic downturn for most of the past year. Indeed, some analysts expect gross domestic product to grow by just 5% this year, down from an estimated 6.2% in 2008.
But Hong Leong's plans appear to be to build up now, counting on an economic recovery later on down the pike.
"Our initial focus will be on building the infrastructure quickly, including people, systems and technology, and leveraging on the strengths of the group to open for business and provide banking services to both the personal and commercial segments," Chia said in the statement.
Hong Leong is not alone in seeing Vietnam as a regional opportunity for investment. Last year Maybank, Malaysia's largest bank by assets, bought a 15% stake in Vietnam's An Binh Bank for M$327.1 million ($92 million).
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