UOB is the first Singapore bank to have received this licence. In a Singapore Exchange filing on July 20th, 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.
UOB is expected to expand the branch network to other cities, beside Saigon; especially consider to launch a branch in Hanoi – the capital city of Vietnam.
In advance, UOB used to eye purchasing share of Global Petroleum Bank (GPBank) in large number. The deal was reported to Prime Minister by SBV, however failed then. GPBank merged to SBV with 0-VND price.
Since 2013, UOB has supported Asian customers to invest more than $3bn in Vietnam. Most of them pour money in infrastructure, real estate, production and fast consume good.
As expected, UOB will be the 9th 100-percent foreign owned bank in Vietnam, following Woori Bank (Korea); Public Bank Berhad (Malaysia); ANZ Vietnam; Hong Leong Vietnam; HSBC Vietnam; Shinhan Vietnam, Standard Chartered Vietnam và CIMB Bank Berhad (Malaysia).