UOB receives FOSB licence to set up subsidiary bank in Vietnam

UNITED Overseas Bank Limited (UOB) on Wednesday received an in-principle foreign-owned subsidiary bank (FOSB) licence from the State Bank of Vietnam to set up a subsidiary bank in Vietnam, making it the first Singapore bank to have received this licence.

In a Singapore Exchange filing on Thursday, the bank said that this move will help it to be "better positioned to broaden and to deepen its support for businesses and consumers in Vietnam as well as its regional clients investing in the country".

The FOSB licence will enable the bank to extend its branch network beyond Ho Chi Minh City and offer its products and financial solutions to businesses and consumers located in other cities, UOB said. It is also considering opening a branch in Hanoi.

Wee Ee Cheong, deputy chairman and CEO of UOB, said that the licence marks the start of a new chapter for UOB in Vietnam.

"With the FOSB licence, UOB will be able to support more Vietnamese companies in their domestic and regional growth by connecting them to cross-border opportunities throughout our extensive network."

UOB added that the licence will help it to support more Vietnamese companies in their expansion plans through business advisory services and financial solutions such as trade finance, cash management and project financing.