In a meeting with Deputy Prime Minister Ho Duc Phoc on 23/9, Kim Sung Tae, Chairman and CEO of the Industrial Bank of Korea (IBK), expressed his hope that IBK would contribute to Vietnam's economic development, particularly by supporting small and medium-sized enterprises, participating in infrastructure projects, and investing in finance.

Mr. Kim also announced IBK's plan to establish a wholly foreign-owned bank in Vietnam.

Deputy Prime Minister Ho Duc Phoc supported IBK's idea of establishing a new legal entity in Vietnam. He affirmed that the government facilitates foreign businesses, including South Korean companies, to manufacture and conduct business effectively and sustainably.

Deputy Prime Minister Ho Duc Phoc receives Mr. Kim Sung Tae, Chairman and CEO of the Industrial Bank of Korea (IBK), on 23/9. Photo: VGP

Deputy Prime Minister Ho Duc Phoc receives Mr. Kim Sung Tae, Chairman and CEO of the Industrial Bank of Korea (IBK), on 23/9. Photo: VGP

Established in 1961, IBK is 68.5% owned by the South Korean government. As of mid-this year, the bank has about 14,000 employees, 625 branches in South Korea, and 60 overseas branches, including two in Vietnam (Hanoi and Ho Chi Minh City). In 2024, IBK's total assets reached 320 billion USD, with a net profit of 1.9 billion USD.

Deputy Prime Minister Ho Duc Phoc expressed his admiration for South Korea's experience in developing small and medium-sized enterprises, some of which have become large corporations with international brands.

Vietnam has more than 98% small and medium-sized enterprises out of a total of over 940,000 operating businesses. The government has introduced several solutions to promote the sustainable development of this economic sector. Therefore, the Deputy Prime Minister hopes that IBK will continue to contribute further to the Vietnamese economy.

According to the (amended) Law on Credit Institutions and its guiding documents, to establish a wholly foreign-owned bank in Vietnam, a foreign credit institution must meet certain financial conditions, such as profitable operations for five consecutive years and total assets equivalent to at least 10 billion USD. They must also ensure capital adequacy ratios, risk management regulations, and provisioning requirements.

In addition to 35 domestic commercial banks, there are currently 9 wholly foreign-owned banks operating in Vietnam: Woori Bank, HSBC, Standard Chartered, ANZ, Hong Leong, Shinhan, Public Bank, CIMB, and UOB Vietnam.

Besides, there are two joint venture banks: Indovina Bank (IVB) and Vietnam-Russia Bank (VRB).

Phuong Dung