CIMB Group today announced it has obtained in-principle approval to offer banking services in Vietnam. The approval by the central bank, the State Bank of Vietnam allows CIMB to establish and operate a 100%-owned subsidiary, offering a comprehensive range of wholesale, commercial and consumer banking products and services to the nation of over 90 million people and its clients across ASEAN.
With this approval, CIMB will embark on its plans to establish a branch network in the country. Its first branch in Hanoi is expected to be fully operational by the third quarter of 2016 as it expects to secure its full operating banking license then.
Tengku Dato' Zafrul Aziz, Group Chief Executive, CIMB Group said, "We are delighted to receive the go-ahead from The State Bank of Vietnam. This approval allows us to expand our presence in Vietnam, a country that has shown resilient growth, backed by a large young population and growing middle class. With this foray into Vietnam, we will be able to further solidify our position as the leading ASEAN bank and offer the much needed regional connectivity to intermediate trade and investment flows.
"We also believe that the addition of a full banking license in Vietnam is timely as the region welcomes the commencement of the ASEAN Economic Community later this year," added Tengku Zafrul.