UOB expands in Vietnam with Hanoi branch

Singapore

UNITED Overseas Bank (UOB) continues to deepen its presence in Vietnam with the opening of its Hanoi branch on Thursday - the bank's first beyond Ho Chi Minh City.

The expansion comes a year after the incorporation of UOB's fully- owned subsidiary in Vietnam, reflecting the bank's commitment to provide its financial services and solutions to more customers across the country, said UOB in a statement.

The branch opening in Hanoi was officiated by UOB chief executive officer Wee Ee Cheong and Catherine Wong, Singapore's ambassador to Vietnam, on Thursday.

"Our new branch reflects our continued confidence in the country as we seek to serve more customers in both the northern and southern parts of Vietnam.

"It will enable us to connect customers to the opportunities that Vietnam offers and to support Vietnamese companies in seizing opportunities across Asean and further afield," said Mr Wee.

Thanks to its strategic location, Vietnam has become Asia's bright spot amid US-China trade tensions, touted as one of the key destinations for foreign manufacturers relocating their production facilities.

In the last year, Vietnam's economy was boosted by almost 8 per cent on the back of supply chain shifts, according to Japanese investment bank Nomura.

For land transport, Vietnam benefits from bordering Laos, Cambodia and especially China, the region's key supplier of products and raw materials, said UOB in a note on Tuesday.

As for sea transport, eastern Vietnam is a coastal area stretching from the north to the south, with three major port cities in its northern, central and southern regions.

Vietnam's economy expanded 7.1 per cent in 2018, the fastest growth in 11 years. UOB is projecting growth at 6.7 per cent and inflation of around 3.4 per cent for 2019.

This will rank Vietnam as one of the fastest growing economies in the world, said the bank.

UOB was the first Singapore bank to establish a branch in Vietnam in 1995, operating under a branch licence before the incorporation of UOB Vietnam in August last year.

Said Ms Wong: "The bank has supported many companies in their expansion into Vietnam, providing connectivity and facilitating investment flows into the country. UOB's expansion in Vietnam also represents our evolving bilateral ties, as Singapore partners with Vietnam in its next phase of growth."

UOB shares closed on Thursday at S$24.82, up six Singapore cents.