November 22, 2024

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Shinhan Financial Group Chairman Jin Ok-dong (fourth from right) and Shinhan Bank CEO Jung Sang-hyuk (fourth from left) pose with local subsidiary heads at the opening ceremony of the group's new Vietnam headquarters on Thursday. (Shinhan Financial Group)

South Korea’s Shinhan Financial Group has opened its new Vietnam headquarters in Ho Chi Minh City’s Thu Thiem financial district, bringing its subsidiaries together under one roof, the company said Sunday.

On Thursday, Shinhan’s five Vietnamese subsidiaries — Shinhan Bank, Shinhan Finance, Shinhan Life, Shinhan Securities and Shinhan DS — relocated to The Mett Building, a landmark in the new urban area of Thu Thiem.

The opening ceremony was attended by key executives, including Shinhan Financial Group Chairman Jin Ok-dong and Shinhan Bank CEO Jung Sang-hyuk.

This relocation marks a significant milestone in Shinhan's over-30-year presence in Vietnam. In 1993, Shinhan Bank became the first Korean commercial bank to enter the Southeast Asian market by opening a local office.

Shinhan Bank further expanded its footprint by establishing a local corporation in 2009 and taking over ANZ Vietnam's retail segment in 2017. The launch of Shinhan Vietnam Financial Co. in 2019, through the acquisition of Prudential Vietnam Financial Co., further deepened its involvement in Vietnam's retail banking and microfinance sectors.

Shinhan Securities entered Vietnam in 2016 through the acquisition of Nam An Securities, followed by tech solutions provider Shinhan DS in 2018 and insurer Shinhan Life in 2022.

"Shinhan Financial Group has delivered unique financial solutions in Vietnam through seamless collaboration among its subsidiaries," Jin said. "By consolidating our operations into a single headquarters, we reaffirm our commitment to customer-centric values and aim to strive for even greater success in Vietnam."

Shinhan has established itself as a leading foreign financial institution in Vietnam, with its presence continuing to grow. As of last year, the company has operated 51 local branches and currently employs around 1,200 staff members, 98 percent of whom are Vietnamese.

The company reported a record-high global profit of 410.8 billion won ($304 million) in the first half of this year, with 35 percent — 142.7 billion won — attributable to its Vietnamese operations, the highest among Korean financial firms in the region during this period.

Meanwhile, Thu Thiem, a new urban area in northeast Ho Chi Minh City, is poised to become Vietnam's next central financial and business district, with a strong focus on fintech and digital banking. The local government is actively developing the area, aiming to transform Ho Chi Minh City into a global financial hub by 2030.

By Choi Ji-won (jwc@heraldcorp.com)