Hanoi (VNA) – The State Bank of Vietnam (SBV) has granted a licence for the establishment of a wholly foreign-owned bank to the Industrial Bank of Korea (IBK), marking a new step forward in attracting international financial investment and expanding the presence of Korean financial institutions in Vietnam.

The information was announced during a working session between SBV Deputy Governor Nguyen Ngoc Canh and Chang Min Young, Chairman and CEO of IBK, as part of President of the Republic of Korea Lee Jae Myung's ongoing state visit to Vietnam.

At the meeting, the SBV leader congratulated IBK Vietnam on receiving its licence, noting that the RoK currently has the largest number of financial institutions and banks operating in Vietnam.

According to the SBV, licensing IBK to establish a wholly foreign-owned bank will not only help diversify the credit institution system but also promote capital flows to the business sector, particularly small- and medium-sized enterprises (SMEs), one of the key growth drivers of the economy. Demand for capital in this sector remains significant in Vietnam, especially amid efforts to support recovery and expand production and business activities.

With more than 60 years of operational experience, IBK is expected to provide comprehensive financial solutions for the Korean business community in Vietnam, while also expanding support to domestic SMEs. The IBK representative said the bank has strong expertise in SME financing, with around 75% of its credit portfolio focused on this segment.

IBK pledged that, following the granting of the licence, the bank will quickly stabilise its organisation and operate effectively, thereby making positive contributions to the development of Vietnam’s banking and financial market as well as strengthening economic cooperation between the two countries.

The SBV also called on IBK to continue playing its role as a bridge supporting business connectivity between the two countries, promoting supply chain financing programmes and helping Vietnamese enterprises participate more deeply in global value chains./.