The Commonwealth Bank of Australia
(ASX:CBA) and Vietnam International Bank have entered into agreements to form a strategic partnership which will see CBA take a 20% stake in the Vietnamese bank.
As part of the strategic partnership, a longer-term ‘Capability Transfer Program’ will be established to further enhance the operational and commercial capabilities of Vietnam International Bank.
CBA says the banks will also engage in an ongoing working partnership to investigate other business opportunities moving forward.
Head of international financial services at the Commonwealth Bank, Simon Blair, says despite several years of challenging economic times around the world, Vietnam is well positioned for long-term growth and the CBA wants to support that growth.
Mr Blair says the bank is confident that it can help Vietnam International Bank become one of the best performing banks in Vietnam and in turn form a long lasting commercial relationship between the two organisations.
Upon completion CBA expects to hold two seats on an expanded Vietnamese banks board of directors.
For the 2009 financial year the Commonwealth Bank posted profit of $4.7 billion.
