South Korea’s Kookmin Bank injects $100mln into Vietnam’s branches

Xuan Thinh Tuesday | 05/26/2020 10:06

South Korea’s Kookmin Bank injects $100mln into Vietnam’s branches. Photo: SBV

Lender got Vietnam central bank's approval to increase capital at its Hanoi and Ho Chi Minh City branches by $100 million, showing the Korean bank is still optimistic on Vietnam's market prospects.

The State Bank of Vietnam said its Ho Chi Minh City chapter approved Kookmin Bank – Ho Chi Minh Branch to increase its registered capital to $100 million from $70 million.

Earlier, Kookmin Bank – Hanoi Branch had been approved by the central bank to raise its registered capital to $100 million from $35 million after one year of operation.

Among the foreign banks currently operating in Vietnam, South Korean banks have been actively expanding their investment and operations due to growing investment capital from South Korean firms to Vietnam.

South Korea is among the biggest investors in Vietnam. As of end-March, the country took first place in terms of the investment capital in Vietnam at $68.6 billion, accounting for 18.5% of total investment capital, followed by Japan at $59.7 billion.

Last year, the country led foreign investors in Vietnam, injecting $7.92 billion into the country, accounting for over one-fifth of the total flow of foreign direct investment into Vietnam during the year.

A total of $38.02 billion of foreign direct investment was poured into Vietnam last year to December 20, a 10-year high, according to the Foreign Investment Agency under the Ministry of Planning and Investment.