Deutsche Bank eyes 20 percent stake in Vietnamese bank
HANOI - Deutsche Bank plans to buy up to 20 percent of Vietnam's Habubank, pending state approval, becoming the third foreign bank in a week to announce plans to increase its presence here, according to officials.
If the contract is approved, Deutsche Bank will become the largest shareholder in the Ha Noi Building Joint Stock Commercial Bank and be entitled to join its board of directors. No financial terms of the deal were disclosed.
"Deutsche Bank believes in the growth potential of Vietnam," said Rainer Neske, global head of private and business clients of the top German Bank.
"In a partnership approach with Habubank, we will leverage our retail banking expertise to participate in the further development of this market."
The banks will cooperate in the areas of credit cards, wealthy clients and the development and distribution of investment products, Deutsche Bank said.
Habubank, founded in 1988, has 21 branches with 560 employees providing retail and business services.
Singapore's United Overseas Bank (UOB) and London-based giant HSBC late last week also said they wanted to increase their presence in Vietnam.
The communist country, which booked over 8.0 percent economic growth last year, in January joined the World Trade Organisation.
The banking community expects Vietnam to soon allow foreign shareholders to own up to 20 percent of joint stock commercial banks, up from 10 percent.
UOB late last week acquired a 10 percent stake in Vietnam's Southern Commercial Joint Stock Bank for 30 million dollars.
HSBC agreed to double its stake in Vietnam's Techcombank to 20 percent in an 85-million-dollar deal, pending government approval.
Agence France Presse - February 2, 2007.
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