MB completes selection of strategic partner for commercial joint venture in Cambodia

MB and Shinsei Bank are opening their first joint venture in a third country

Accordingly, the parties agreed that after MB obtains the approval of the relevant state agency on the establishment of a commercial bank solely by MB in Cambodia with a minimum charter capital of $75 million, MB will transfer up to 49 per cent of the shares to a strategic partner and launch Vietnam's first joint venture bank abroad.

MB is known for its rich experience in successfully developing digital banking in Vietnam, as well as its solid business foundation and remarkable market understanding during 10 years of operating banking activities in Cambodia as a branch.

Shinsei Bank, Ltd. (Shinsei Bank) which has more than 50 years of banking experience in Japan, has outstanding achievements in retail banking and consumer finance. Hence, the joint venture bank that is built on the collaboration of these two financial groups is expected to become a leading digital-retail bank in Cambodia.

To realise that goal, both parties agreed to invest substantially and systematically in resources and nominate high-quality personnel to build outstanding business strategies, models, and solutions to enter the dynamic financial and banking market in Cambodia.

MB and Shinsei Bank have a successful joint venture in MB Shinsei Finance LLC (MCredit). After five years of cooperation, MCredit is currently ranked among the four most prominent consumer finance companies in Vietnam in terms of outstanding loans, with returns on equity performance at about 30 per cent.

The joint venture in Cambodia is a watershed moment in the cooperative relationship between Vietnam's and Japan's financial groups. Furthermore, the joint venture in a third country demonstrates the two groups' willingness and dedication to work together on a long-term basis.

This also indicates MB’s strategic vision and great expectations to gradually improve the position and foster the business development of MB Group in Asia.