VietinBank & MUFG Bank celebrate 10 years of strategic alliance
Two sides commemorate alliance on May 19 that has enabled both to support the growth of Vietnam’s banking sector and foster deeper Vietnam-Japan business and knowledge exchanges.
A strategic alliance spanning the last decade was celebrated by VietinBank and MUFG Bank at a gala ceremony in Hanoi on the evening of May 19, with senior executives from Vietnam’s business community and senior government officials from Vietnam and Japan in attendance.
The partnership officially began in May 2013, when MUFG, the banking entity of one of the world’s largest financial groups, purchased a 19.73 per cent stake in VietinBank, one of Vietnam’s leading banks. The strategic investment and comprehensive cooperation agreement was regarded then as an unprecedented merger and acquisition (M&A) investment in the history of Vietnam’s banking industry. Since then, both organizations have leveraged their respective strengths to better serve clients and connect them to opportunities both within Vietnam and across Asia.
Ten years of progress together
Over the past ten years, the synergy of VietinBank and MUFG’s combined network and expertise have allowed both to not only expand their business franchise but also provide comprehensive solutions targeting diverse financial needs across the entire customer value chain.
Under the strategic partnership, MUFG has cooperated with and supported VietinBank in various areas, such as promoting retail banking and corporate banking as well as the sharing of best practices in risk and compliance and strategic planning.
Mr. Tran Minh Binh, Chairman of VietinBank, said that the partnership has developed continuously over the last ten years, not only limited to predefined cooperative areas but also comprehensive coverage of MUFG’s strategic partner banks in ASEAN - Bank of Ayudhya (Krungsri) in Thailand, Security Bank in the Philippines, and Bank Danamon in Indonesia - as well as subsidiaries in VietinBank Group’s ecosystem.
Similarly, Mr. Yasushi Itagaki, Head of MUFG’s Global Commercial Banking (GCB) Business Group, noted that MUFG’s partnership with VietinBank was the first strategic investment that kickstarted the growth of an unrivaled Asia-Pacific network comprising some of Southeast Asia’s top financial institutions. “As such, it serves as both a cornerstone of our regional franchise and a special reminder of our strategic intent and commitment to Asia,” he said. “Our core strategy has been to leverage the capabilities of both banks to contribute to the growth of our customers in Vietnam and the country’s economy.”
“Over the course of the past ten years, we have made great progress in furthering not just the partnership but also in fostering Japan-Vietnam bilateral ties and the growth of the local banking sector,” he continued. “As Vietnam’s ascendancy in ASEAN gains momentum and it is further integrated into global supply chains, we remain committed to deepening our partnership with VietinBank to further contribute to the next chapter of the country’s success story.”
Speaking at the ceremony, Mr. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam (SBV), expressed his appreciation of the strategic alliance, which has successfully synergized the two banks’ potential and strengths to record remarkable achievements, supporting the two business communities and promoting bilateral investment and trade ties between Vietnam and Japan. “The SBV acknowledges the start of cooperation between VietinBank and MUFG in the area of environmental, social, governance (ESG), and hopes that VietinBank can leverage MUFG’s experience in this area to become a leader in sustainable finance in the country,” he said.
Deepening Japan’s ties with Vietnam
Over the last ten years, the VietinBank-MUFG alliance has demonstrated the role of supporting and connecting the two business communities. Since 2013, they have jointly organized conferences for the Vietnamese Prime Minister to meet senior executives of Japan’s leading corporates during official visits to the country, and business matching fairs that open up new business opportunities for corporate clients in both countries.
At the ceremony, H.E. Yamada Takio, Ambassador of Japan to Vietnam, expressed his hope of the VietinBank - MUFG Bank strategic alliance growing further and more deeply, to connect the two business communities while continuing to contribute to the economic development of both countries.
In a strong show of support for the community as well as Vietnam-Japan bilateral ties, VietinBank and MUFG have jointly provided financial aid to primary and nursery schools in the Mekong Delta’s Dong Thap and northern Hung Yen provinces and a childcare center in the capital Hanoi, and helped Vietnamese students in Japan make it through the economic difficulties during the Covid-19 pandemic, with sponsorship of VND32 billion ($1.36 million).
“These achievements are the result of our two banks’ efforts to overcome cultural and language barriers, geographic distance, the pandemic, and the challenges of an unpredictable global economy, showing our commitment to a long-term and sustainable partnership,” Mr. Binh said.
Looking forward, he believes that the two will conduct more cooperative initiatives, contributing to the promotion of economic and trade ties between Vietnam and Japan, in commemoration of the 50th anniversary of the establishment of Vietnam-Japan diplomatic relations (1973-2023).
Mr. Kojima Masao, Country Head of MUFG Vietnam, said it has worked closely with VietinBank to nurture greater friendship between Japan and Vietnam through business cooperation and contributions to the community. “We remain committed to empowering a brighter and more sustainable future for Vietnam and look forward to working with VietinBank towards achieving this shared vision,” he said.
