Today marks another major milestone in CIMB's growth story. We have received an Approval In Principle to offer banking services in Vietnam by the governor of the State Bank of Vietnam, His Excellency, Nguyen Van Binh. This historic ceremony was witnessed by H.E. Nguyen Tan Dung, Prime Minister of Vietnam and Dato' Sri Najib Tun Razak, Prime Minister of Malaysia.
The approval 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 plans to establish its first branch in Hanoi to be ready in 2016 and thereafter gradually expand its branch network across the country.
We are excited to receive the go-ahead from The State Bank of Vietnam. The country has experienced resilient economic growth and macroeconomic stability. Vietnam’s GDP grew 5.9% in 2014 and we expect this growth to continue in 2015. In addition, the large young population and growing middle class presents an opportunity to capture market share in an under-banked economy.
As the 5th largest bank in ASEAN, one of the most connected investment bank in Asia and one of the fore runners in internet banking in ASEAN we are strategically positioned to facilitate our regional client’s entry and expansion into Vietnam, as well as extend quality, innovative banking products and services in line with the growing sophistication of the Vietnamese population.
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. 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.
While we continue to recalibrate our existing platform, we have not lost sight of the need to selectively invest and grow in key geographies central to our aspirations to be a leading ASEAN franchise. Vietnam represents a dynamic new market for the Group and a key milestone in our T18 strategy. I am excited at the prospect of participating in this vibrant economy.
As we commence our set up plans over the next few months, there may be exciting opportunities for staff to participate in our new venture. Please do look out for further details – I look forward to a fruitful journey in Vietnam with #teamcimb.