SHINHAN VINA BANK: Firm Support for S. Korea Investors

Shinhan Vina Bank was set up in December 1992 under the name of First Vina Bank, one of the first joint ventures of South Korea in Vietnam in the doi moi (renovation) period, in which Vietcombank held 50 per cent stake, Korea First Bank 40 per cent and Daewoo Security 10 per cent. In the initial stage, the bank played a very active role in supporting South Korean investors in Vietnam. Total investment capital in the first phase was US$10 million. In 1994, the bank opened its branch in Hanoi.

 

The 1997 Asian financial crisis directly impacted bank operations. This was the most difficult time, nearly all South Korean companies in Vietnam were affected by the crisis, leading to stagnancy or business closure. In 1999, South Korea overcame the crisis and the investment flow into Vietnam recovered. In 2000, First Vina Bank was renamed to Chohung Vina Bank. The bank thrived in this period thanks to diversified services and expansion. In 2004, the bank introduced ATM payment service through the Vietcombank ATM network. In 2005, it opened its branch in Binh Duong Province. In 2006, the South Korea-based Shinhan Bank acquired Chohung Bank and renamed it Shinhan Vina Bank. At present, the combined investment capital of Shihan Vina Bank is US$30 million and it is rated one of the best joint venture banks in Vietnam. In 2007, Shinhan Vina Bank will open its branch in Dong Nai Province where a lot of South Korea enterprises are investing.