return icon Vietnamnet.vn

Korean banks focus more on Vietnam for impressive growth

The Republic of Korea’s banks are focusing more on Vietnam as the market emerges as a major source of earnings for them amid their slowdown from China.

 

{keywords}

Korean commercial banks are showing a steady growth in Vietnam (Photo: vietnambiz.vn)

 

 

RoK banks are seeing their earnings in China decrease due to the prolongedtrade between China and the US and the slowdown in economic growth rates.However, they are showing higher profits in the Southeast Asian region,including Vietnam, thanks to the RoK government’s New Southern Policy, the BusinessKorea newspaper reported.

Korean commercial banks are showing a steady growth in Vietnam. Their netprofits in Vietnam came to 131.80 million USD in 2018, showing a 116 percentrise (70.80 million USD) from 61 million USD in 2017, according to the datafrom the Financial Supervisory Service (FSS).

Woori Bank Vietnam also saw itsnet profits surge 130 percent year-on-year to 8.17 billion won (6.83 millionUSD) in the first half.

Meanwhile, the net profits of Chinese subsidiaries of the RoK’s top fourcommercial banks, including Shinhan, Kookmin, Woori and Hana Bank, came to45.20 billion won (37.81 million USD) in the first half of this year, down 44percent, or 36.30 billion won (30.36 million USD), from a year ago.

The returnon assets (ROA) also stood at 0.58 percent, falling short of 1 percent ofChinese banks as well as 0.75 percent of foreign banks in China.

According to Lee Chi-hoon, a researcher at the Korea Center for InternationalFinance, the business environment in China has worsened as a whole amid theslowing Chinese economy.

Furthermore, Korean conglomerates’ investment in Chinahas shrunk after the Terminal High Altitude Area Defense (THAAD) issue. Asa result, the Korean banks’ strategy of focusing on firms operating in China has reached its limits.

Accordingly, Hana Bank, which suffered the biggest drop in net profits amongcommercial banks, has closed down some branches.

After the net profits of theChinese subsidiary of Hana Bank plunged 68 percent on year to 14.40 billion won(12.04 million USD) in the first half, the bank has reduced the number of itsbranches in China from 30 to 27.

Some analysts pointed out that Korean commercial banks need to come up with anew strategy for China as their earnings gap between China and Vietnam has beennarrowed to 22 million USD./. VNA

Vietnam: a top choice for South Koreans

Vietnam: a top choice for South Koreans

Vietnam is among the top three overseas travel destinations for South Koreans in 2019, a new report says.

Korean firms pour millions into Vietnam

Korean firms pour millions into Vietnam

KorCham, the association of South Korean enterprises in Vietnam, estimates that about three South Korean businesses are inaugurated each day in Vietnam.

MORE NEWS

Corporate bond issuance drops sharply after arrest of Tan Hoang Minh chair

After the cancelation of nine corporate bond issuances of three companies related to Tan Hoang Minh, the volume of private offerings fell sharply by 33 percent to VND30 trillion in April.

Why the stock market sell-off when VN’s economy is strong?

Vietnam’s benchmark VN-Index sold off 11 per cent last week and was down 21 per cent in the year to date at the end of last week after being nearly flat until March end.

Two Vietnamese beauties among Top 50 of Miss Grand Slam 2021

Miss Grand Slam, Nguyen Thuc Thuy Tien, Miss Grand International, Nguyen Huynh Kim Duyen, Top 16 finish in Miss Universe

Vietnamese banks expected to get better credit ratings

Ratings of Vietnamese banks are expected to be continually improved thanks to Vietnam’s positive sovereign credit rating.

Vingroup completes issuing international bonds worth US$525 million

Vingroup Joint Stock Company (Vingroup) has completed its bond issuance on the international market with a total value of US$525 million, according to details given by the Hanoi Stock Exchange (HNX).

Deputy Finance Minister Nguyen Duc Chi takes charge of State Securities Commission

Minister of Finance Ho Duc Phoc had assigned Deputy Finance Minister Nguyen Duc Chi to directly take the charge of the State Securities Commission (SSC) from May 19.

Hanoi approves more than 1 billion USD for Ring Road No. 4 project

The Hanoi People's Council for the term 2021 - 2026 on May 20 agreed to spend 23.5 trillion VND (over 1 billion USD) from the city budget for the Ring Road No. 4 project.

Gov't may recall unused funds for public investment projects

Undisbursed funds for public investment projects could be recalled if local governments failed to implement the projects for an extended period of time,

VIETNAM BUSINESS NEWS MAY 20

CPTPP helps leverage Vietnam-Australia investment cooperation

FDI quality in need of fresh policy boost

Despite good performance in foreign investment attraction over the past year, the number of high-tech projects from developed countries investing in Vietnam is modest as compared to the incentives set forth.

VIETNAM NEWS HEADLINES MAY 20

Singapore parliament speaker wraps up visit to Vietnam

HCM City to launch Saigon River cruise

Ho Chi Minh City Department of Tourism is planning to launch a three-hour cruise tour along the Saigon River that is expected to be among key tourism products in the area this year.

Online gambling results in huge losses for many players

Online gambling is increasing, with many websites allowing players to place bets. Such gambling has led to real life tragedies.

An unusual cemetery where pets can be remembered

Thousands of pets have been laid to rest in the burial ground of Tề Đồng Vật Ngã Pagoda. Founded 50 years ago, it is a peaceful place in downtown Hanoi where animal lovers can pay their last respects to their beloved pets.

Hanoi examines, revokes pending projects

Hanoi needs to remove barriers and obstacles preventing growth.
back_to_top