Press Release 2017
In-principle foreign-owned subsidiary bank licence positions UOB to provide stronger support for Vietnam's businesses and consumers
UOB is the first Singapore bank to receive in-principle licence in Vietnam
Kuala Lumpur, Malaysia, 21 July 2017 - United Overseas Bank Limited (UOB), the parent company of United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has announced that it will be better positioned to broaden and to deepen its support for businesses and consumers in Vietnam as well as its regional clients investing in the country. This follows the Bank's receipt of the in-principle foreign-owned subsidiary bank (FOSB) licence from the State Bank of Vietnam. UOB is the first Singapore bank to receive the in-principle licence.
The FOSB licence would enable the Bank to extend its branch network beyond Ho Chi Minh City and to offer its products and financial solutions to businesses and consumers located in other cities. The Bank will also consider opening a branch in Hanoi which is Vietnam's gateway to fast-developing cities in the north such as Hai Phong, Quang Ninh and Hai Duong.
Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB, said that the in-principle licence marks the start of a new chapter for UOB in Vietnam.
"We have had a longstanding presence in Vietnam and given our regional network, have over the past two decades helped our clients across Asia to identify and to invest in business opportunities in the country. With the in-principle FOSB licence, we look forward to helping our clients realise the business potential in Vietnam, which is one of the fastest developing countries in Asia," Mr Wee said.
Vietnam continues to be an attractive investment destination for many businesses. FDI flows to Vietnam rose to a new record US$12.6 billion in 2016, up 6.8 per cent from the year before1.
Since 2013, UOB has facilitated more than US$3 billion of foreign direct investment from Asia into Vietnam. UOB's regional clients have invested in industries such as construction, real estate, manufacturing and fast-moving consumer goods, all of which have been helping to drive Vietnam's economic growth.
Mr Wee said, "With the FOSB licence, UOB will be able to support more Vietnamese companies in their domestic and regional growth by connecting them to cross-border opportunities throughout our extensive network."
UOB will also be able to deepen its support of more Vietnamese companies in their expansion plans through business advisory services and financial solutions such as trade finance, cash management and project financing.
To help nurture the development of Vietnamese financial technology (FinTech) start-ups, UOB will be able to draw on its expertise in the area of business development and innovation. One way in which the Bank will do this is through The FinLab , a joint venture between UOB and SGInnovate set up to promote the growth of FinTech start-ups in Asia. UOB, in collaboration with The FinLab, will organise knowledge-sharing and networking sessions between promising Vietnamese start-ups and potential investors and industry experts.
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1 Source: World Investment Report 2017, United Nations Conference on Trade and Development, http://unctad.org/en/PublicationsLibrary/wir2017_en.pdf