Commonwealth Bank of Australia sells HCM City branch to VIB
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The Vietnam International Bank (VIB) and Commonwealth Bank of Australia (CBA) announced on Monday that CBA’s HCM City branch would be sold to VIB.
The sale was approved by the State Bank of Viet Nam last week, the two sides said.
They however refused to disclose the value of the transaction.
VIB has a network of 160 branches and more than 400 ATMs across Viet Nam.
CBA said its HCM City branch has around 20,000 customers.
“This decision signifies our commitment to the Vietnamese market as we strengthen our partnership with VIB,” Steve Ellis, general manager of CBA in Viet Nam, said.
“It demonstrates the confidence CBA has in VIB to continue to provide high-quality service to our customers.”
CBA said it would retain the representative office in Hà Nội, which it had opened in 1995, to liaise with Government agencies, financial institutions and corporations.
Han Ngoc Vu, chief executive officer, VIB, said: “We value our partnership with CBA and have always looked to strengthen our partnership to bring the capabilities of CBA’s HCM City branch together with VIB’s.”
He added that the two banks will be working closely with customers in the coming weeks to ensure a smooth transition of their banking relationship to VIB.
The two banks expect the sale to be completed in the third quarter of this year.
CBA had opened the branch in 2008.
It has a 20 per cent share in VIB, which it had bought in 2009-10.
Questions & Answers
Q.When is the sale of the HCM City branch expected to be finalised?
When is the sale of the HCM City branch expected to be finalised?
The two banks anticipate that the sale of the HCM City branch will be completed sometime within the third quarter of the current year. This timeframe allows for the necessary transitional arrangements to be put in place for customers.
Q.How many customers currently use CBA’s HCM City branch?
How many customers currently use CBA’s HCM City branch?
CBA has stated that its HCM City branch currently serves approximately 20,000 customers. These customers will be transitioning their banking relationships to VIB following the completion of the sale.
Q.Will CBA entirely withdraw from Viet Nam after this sale?
Will CBA entirely withdraw from Viet Nam after this sale?
No, CBA will not entirely withdraw. It plans to retain its representative office in Hà Nội, which was established in 1995. This office will continue to manage relationships with Government agencies, financial institutions, and corporations.
Q.What is CBA’s existing relationship with VIB?
What is CBA’s existing relationship with VIB?
CBA holds a 20 per cent share in VIB, an investment it made between 2009 and 2010. This long-standing stake underscores their existing partnership, which both banks aim to strengthen further through this transaction.
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