The Bank for Import and Export of Vietnam (Eximbank) on February 8 signed a deal to sell a 6.42 per cent stake, or US$90 million, to the Kinh Do Corporation, Vietnam’s leading confectionery maker.
Under the agreement, Kinh Do will become a key strategic stakeholder in the lender.
Eximbank managing general director Pham Van Thiet said the decision to choose Kinh Do as a business partner is a new strategic step of his bank.
The cooperation will generate chances for development of both firms amid Vietnam’s integration into the global playing field, he said.
Eximbank is one of the leading commercial banks in Vietnam, so “we have to take prudent steps in choosing a collaboration partner,” Thiet added.
Kinh Do is a giant confectionery maker with a distribution network across the country. Eximbank can supply services via Kinh Do’s distribution network.
Kinh Do is boosting its investment in the real estate sector including apartments, office buildings and commercial centers, so the bank finds good conditions to broaden its customer base by giving loans to property buyers.
“We will lend to Kinh Do customers to buy and lease property developed by the confectionery maker,” Thiet said.
Tran Le Nguyen, general director of Kinh Do, said the partnership would give priority for Kinh Do in obtaining finance to invest in real estate and other sectors in the coming years.
The investment into Eximbank is also part of Kinh Do’s strategy in boosting investment in the finance and banking industry. Kinh Do Group will become the single largest shareholder of Eximbank.
Kinh Do will maintain its stake for least three years in Eximbank, whose chartered capital is VND2,800 billion.
Eximbank is also discussing a cooperation plan with the Saigon Trading Group (Satra), making the two parties strategic partners.
Eximbank has total assets of VND18.33 trillion, deposits of VND13.47 trillion and pre-tax profit of VND358.6 billion as of late 2006.
This year, the bank targets to increase total assets to VND31.68 trillion, deposits to VND18.9 trillion and pre-tax profit to VND605 billion. (Saigon Times Daily, VietNamNet)
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