CIMB obtains approval to open in Vietnam

PETALING JAYA: CIMB Group has obtained, in-principle, approval to offer banking services in Vietnam from the State Bank of Vietnam.
The approval allows CIMB to establish and operate a 100%-owned subsidiary, offering a comprehensive range of wholesale, commercial and consumer banking products and services to the over 90 million people in Vietnam and its clients across Asean.
The bank said in a statement last Friday that it will embark on its plans to establish a branch network in Vietnam, with its first branch in Hanoi expected to be fully operational by the third quarter of 2016. It expects to secure its full operating banking licence then.
"We are delighted to receive the go-ahead from The State Bank of Vietnam. This approval allows us to expand our presence in Vietnam, a country that has shown resilient growth, backed by a large young population and growing middle class. With this foray into Vietnam, we will be able to further solidify our position as the leading Asean bank and offer the much needed regional connectivity to intermediate trade and investment flows," said its group chief executive Tengku Datuk Zafrul Abdul Aziz.
"We also believe that the addition of a full banking licence in Vietnam is timely as the region welcomes the commencement of the Asean Economic Community later this year," he added.