more-foreign-banks-buy-into-vietnam

More foreign banks buy into Vietnam

UOB increases its investment in Southern Commercial Joint Stock Bank, while SG receives approval to buy a stake in Southeast Asia Commercial Joint Stock Bank.

By Lara Wozniak

July 28, 2008

The State Bank of Vietnam, which is the nation's central bank, has approved the purchase of a 5% stake in Phuong Nam Southern Commercial Joint Stock Bank by the United Oversea Bank UOB of Singapore, its foreign strategic shareholder. The purchase price was not disclosed.

The purchase will increase UOB's holding in Southern Bank to 15% from the current 10% that UOB bought in December 2007 for Vnd480 billion $30 million. A 15% stake is currently the maximum amount that a foreign strategic investor is allowed to hold in a domestic financial institution in Vietnam.

Southern Bank was established in 1993 with an initial charter capital of Vnd10 billion. The Ho Chi Minh...

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