[Sponsored Report] Shinhan Financial Group prevails in VietnamShinhan Financial Group has been enjoying newfound success in Vietnam through its strategy of localization, by which the company tailors its products, services and business process to each local market.
Their goal is not merely to install offices overseas but to ensure that the group’s affiliates lay deep roots in new markets by introducing banking and non-banking services.
The success of Shinhan group’s overseas expansion is best illustrated through Shinhan Bank Vietnam. Starting in Ho Chi Minh as an overseas office in 1993, Shinhan Bank Vietnam was fully transferred into a local subsidiary in 2009.
Shinhan Card subsequently joined the Vietnamese financial market in 2011, and the two currently produce a net income of approximately 40 billion won ($33.4 million) annually, ranking second among foreign bank brands operating in Vietnam.
Along with Shinhan Card, Shinhan Investment and Shinhan Life Insurance are also seeking opportunities to effectively collaborate with Shinhan Bank in Vietnam.
Shinhan Investment advanced into Vietnam in 2010 by establishing an overseas office for market research.
In February, it signed a contract for the purchase of a local stock company and in July got primary approval from the State Securities Commission of Vietnam.
It is currently waiting for second and third approval, while at the same time preparing a new business model for the imminent Vietnamese branch.
In July, Shinhan Life Insurance set up an overseas office in Vietnam; likewise, it is contacting financial authorities and preparing operational plans with the goal of launching a local subsidiary by 2017.
With the entry of non-bank affiliates, Shinhan Finance Group will be able to provide well-balanced composite portfolios to customers in Vietnam.