Under a document released late last week, the 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 Vietnam has expanded over the years with a rise of 37 percent each year, making the RoK the largest foreign investor among the 132 countries and territories investing in Vietnam, at 80 billion USD by the end of November 2019.
The Korea Trade and Investment Promotion Agency (KOTRA) forecast the wave of Korean investment in Vietnam 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 Vietnam’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.