UOB Vietnam bank raises charter capital by 60%

UOB Vietnam, wholly owned by Singapore’s United Overseas Bank (UOB), has increased its charter capital by 60% to VND8 trillion ($329 million) through a capital injection from its parent bank.

This is the second capital boost in the last three years, reinforcing its commitment to Vietnam, the bank said in a Tuesday release.

This infusion of capital will help it accelerate growth in the retail segment, expand its customer base and increase its market share. It will also facilitate the promotion of business activities in the wholesale segment, the bank said.

“Vietnam is a strategic market for UOB in ASEAN. Our decision to bolster our capital is testament to our enduring commitment to Vietnam’s prosperity and our belief in the nation’s vibrant potential,” said Victor Ngo, CEO of UOB Vietnam.

After 30 years in Vietnam, the bank has five branches in Ho Chi Minh City and Hanoi with over 1,300 employees. It has maintained a steady growth rate, witnessing 30% plus growth in total assets between 2018 and 2022.

In March, UOB completed the acquisition of Citibank Vietnam’s consumer banking business in the country, doubling its loans and deposits and tripling its retail customer base.

Since entering a memorandum of understanding (MoU) with the Foreign Investment Agency (FIA) under Vietnam’s Ministry of Planning and Investment in April 2015, UOB has supported over 290 companies in investing in Vietnam, contributing an estimated VND113.87 trillion ($4.7 billion) in investment and facilitating the creation of about 57,000 jobs.

UOB Vietnam said it will continue to support foreign investment and local enterprises; and facilitate growing trade and investment flows into Vietnam.

The bank renewed its MoU with the FIA recently, focusing on attracting high-quality foreign direct investment (FDI) into Vietnam and bolstering the creation of jobs, especially in high-tech applications, digitalization, green growth, sustainability initiatives, new energy, semiconductors and finance.