UOB to Inject Fresh Capital of 2 Trillion Dong into Vietnam Unit

Asean Business

Friday, 8.30 am

UOB Injects Additional Capital into Vietnam Subsidiary

[SINGAPORE] United Overseas Bank (UOB) said on Tuesday (Apr 8) that it will inject additional fresh capital of two trillion dong (S$104 million) into its Vietnam subsidiary, bringing its total charter capital of the unit to 10 trillion dong.

Largest Capital Injection to Date

Since 2021, UOB has made three capital injections into UOB Vietnam. Its total charter capital of 10 trillion dong upon the latest injection represents a doubling from its 2021 levels, making it the second-largest foreign-owned bank in Vietnam in terms of charter capital.

UOB’s Commitment to Vietnam

UOB is the only Singapore bank with a subsidiary in Vietnam, having set up UOB Vietnam in 1993. The bank was also the first Singapore bank to set up a branch in Ho Chi Minh City in 1995. Today, UOB Vietnam has five branches in Ho Chi Minh City and Hanoi with around 1,500 employees.

New Headquarters in Ho Chi Minh City

To “reaffirm its strong commitment” to Vietnam, UOB Group will invest in a new headquarters in Ho Chi Minh City’s business district. The new UOB Vietnam Plaza will house most of its employees and form the base for the bank’s future business growth in Vietnam. The building will also incorporate sustainable features.

UOB’s Asean Strategy

UOB deputy chairman and chief executive Wee Ee Cheong said Vietnam is a key market in UOB’s Asean strategy, with the bank committed to deepening its presence there for the long term. In 2022, UOB acquired Citigroup’s consumer banking businesses in Indonesia, Malaysia, Thailand, and Vietnam. It expects the integration of Vietnamese customers to be completed by this year.

Strengthening Competitiveness and Accelerating Growth

To better serve the changing needs of retail and wholesale customers, UOB Vietnam is also “strengthening its competitiveness and accelerating growth in digital banking”. For the retail segment, the subsidiary is making significant investments in digital technology and artificial intelligence to develop a new digital banking platform, which is set to launch this year. Meanwhile, it will support corporate clients across their supply chains and enable them to “seize new opportunities and to advance their sustainability goals”.

Conclusion

UOB’s latest capital injection into UOB Vietnam demonstrates the bank’s commitment to the country’s growing economy and its expansion plans in the region. The new headquarters and investments in digital banking will enable UOB Vietnam to better serve its customers and support the bank’s long-term growth strategy in Vietnam.

FAQs

Q: What is the total charter capital of UOB Vietnam after the latest capital injection?

A: The total charter capital of UOB Vietnam is 10 trillion dong, a doubling from its 2021 levels.

Q: What is the significance of UOB Vietnam’s new headquarters?

A: The new UOB Vietnam Plaza will house most of its employees and form the base for the bank’s future business growth in Vietnam. The building will also incorporate sustainable features.

Q: What are UOB’s plans for digital banking in Vietnam?

A: UOB Vietnam is making significant investments in digital technology and artificial intelligence to develop a new digital banking platform, which is set to launch this year.