President Lim Yong-jin of Shinhan Card, left, holds an agreement to take over 100 pct of the stake in Prudential Vietnam Finance signed early in January with Wilson Guig, the top strategist for Prudential Vientman Finance.

Shinhan Financial Group acquired 100 percent of Prudential Vietnam Financial Co. (PVFC) for 160 billion won recently. The move will allow its affiliate Shinhan Card to engage in the credit card market, including card loans, in Vietnam’s financial market, the group said on Jan. 23.

Shinhan Card said it signed an agreement with Prudential Vietnam Finance Co. to take over the whole company  for $151 million. PVFC, set up in 2006, was the first foreign credit provider in the S.E. Asian country. The company netted 10 billion won in profit in 2016 to rank 4th among financial companies in Vietnam.

The personal loan market in Vietnam expanded 63 percent in the past three years and its prospect for growth looks very strong. The Vietnamese economy is projected to grow 6 percent per year in the coming years, the credit card firm stated as part of its rationale for the takeover of the smaller loan firm and to enter the credit card market in Vietnam. The financial group had been planning to enter Vietnam’s financial market, which is already contested by 178 financial firms from 20 countries. 

A number of the financial group’s affiliates have already been engaged in the country, including Shinhan Financial Investment and Shinhan Life through a local subsidiary. Shinhan Vietnam Bank took over the Vietnam operations of Australian ANZ in April last year to rank as the top retail bank among all foreign banks operating there.

As of the end of 2017, Shinhan Vietnam had total assets of $3.3 billion with 240,000 people holding Shinhan credit cards. The number of customers totaled 900,000.

The group has its eye set on the non-banking side of its operation, with Shinhan Card taking over Prudential Vietnam Financial Corp. The move is expected to give a big boost to Shinhan Financial Investment and Shinhan Vietnam Bank in expanding the number of customers from the synergy created from its takeover of PVFC. President Lim Young-jin said the credit card firms will have a diverse operation in cooperation with its affiliates to work for “a global Shinhan” as an integrated financial group. 

 A group of officials cut the opening tape for Shinhan Bank Vietnam at a ceremony on Dec. 18 in Ho Chi Minh City after integrating 8 networks from ANZ Vietnam Retail led by President Shin Dong-min of Shinhan Bank Vietnam and Korean Gen.-Counsel Park No-wan.(Photos: Shinhan Card)