VPBank announces SMBC as foreign strategic investor

The investment from SMBC will help the bank raise almost VND36 trillion, or approximately $1.52 billion, of Tier 1 capital, increasing its owner equity from $4.5 billion to approximately $6.1 billion

This comes as part of capital raising plans that VPBank has been implementing over the last year to strengthen its long-term finances and support its ambitious growth strategy over the next five years.

Ngo Chi Dung, chairman of the Board of Directors of VPBank (right) and Masahiro Yoshimura, CEO, Chief Investment Officer, SMBC Bank

Following this latest investment from SMBC, VPBank now becomes Vietnam’s second-largest bank in terms of owner equity, which allows it to serve a wide range of customer needs in various segments, including retail banking, corporate banking and small- and medium-sized enterprises.

The robust capital stance will also help VPBank to serve large-scale enterprises, particularly multinational companies and foreign firms that are already investing or considering investment in Vietnam.

The new funding also underlines a strong and trusted collaboration between SMBC and VPBank, since the two parties entered into a Business Partnership Agreement in May 2022.

Previously, in 2021, SMBC Consumer Finance, a subsidiary of SMFG, also acquired a 49 per cent equity stake in FE Credit, a wholly owned subsidiary of VPBank.

SMBC will contribute towards VPBank’s growth by leveraging its know-how and business expertise accumulated in other Asian markets. SMBC is also expected to help accelerate the digital transformation at VPBank that will deliver customer-centric banking products and services alongside a superior customer experience.

Furthermore, thanks to the great reputation of a large financial institution like SMBC, the strategic deal is anticipated to attract and encourage potential foreign direct investment (FDI) from the 200,000 corporate clients of SMBC to come and expand their investment in Vietnam. Businesses that potentially enter Vietnam through SMBC will also be likely to become clients of VPBank.

For SMBC itself, through the rapport built with a local bank like VPBank, the group will be able to strengthen its foothold in the country and exploit opportunities for local ventures, particularly those in infrastructure construction and green and sustainable growth that the group has been focussed on recently.

VPBank is now among the top players in Vietnam’s financial and banking area, with a strong presence in retail and SME segments. It is also a digital pioneer, implementing end-to-end digitisation to deliver a distinctive customer service experience.

Sumitomo Mitsui Banking Corporation (SMBC) is one of the largest commercial banks in Japan. With offices in 39 countries and regions including the Americas, Europe, Middle East, Africa, Asia, and Oceania, SMBC has an extensive global network and growing international presence.

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