Foreign investors’ continuous investment in Vietnam has shown their optimistic about the country’s economic outlook, the Vietnam News Agency (VNA) reported. Recently, Vietnam’s VPBank announced that it has entered into an agreement with Japan’s Sumitomo Mitsui Banking Corporation (SMBC) – a subsidiary of Sumitomo Mitsui Financial Group, Inc (SMFG) – to issue 15% of equity stake at a value of US$1.5 billion through a private placement. The deal saw the record value in the financial sector of Vietnam so far, breaking VPBank’s own record in the US$1.4-billion deal with FE Credit. In the context that the banking system of the US and Europe is facing difficulties, the event has an important meaning, reflecting the attractiveness of the Vietnamese economy. Following the latest SMBC strategic investment, VPBank will become Vietnam’s second largest in terms of owner equity. Meanwhile, the deal will enable the SMBC to strengthen its presence in Vietnam and have a chance to provide capital to Vietnamese projects. With a population close to 100 million, strong digitalisation process and bright GDP outlook as well as the “go green” infrastructure development trend, Vietnam is an attractive financial market in the region and a favourable destination for foreign investors. Esraa Esmail/ Rola AlGhoul
Source: Emirates News Agency