[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.
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 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.
To “reaffirm its strong commitment” to Vietnam, UOB Group will invest in a new headquarters building 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.
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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.
To better serve the changing needs of retail and wholesale customers, UOB Vietnam is also “strengthening its competitiveness and accelerating growth in digital banking”, said the bank.
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”.
With the completion of UOB Vietnam’s headquarters, UOB will have local headquarters buildings across all five of its key Asean markets, including Singapore, Malaysia, Indonesia and Thailand.
Shares of UOB were down S$1.10 or 3.3 per cent at S$32.13 on Tuesday, before the announcement.
