The Financial Services Commission announced on the 8th that the Central Bank of Vietnam has issued a receipt for the Korea Development Bank's application for a branch establishment in Hanoi. It has been about six years since the Korea Development Bank applied for the approval in July 2019.
The receipt is the first official document publicly announcing that the submission of documents required for review has been completed by the Vietnamese financial authorities.
The Vietnamese side is reported to have withheld the issuance of approvals for a considerable period, judging that the number of banks is excessive compared to the size of its economy. Domestic banks have continuously requested the establishment of additional branches in Vietnam, but these requests have not been accepted for years.
The Financial Services Commission noted, "The government created a friendly atmosphere through financial diplomacy, including bilateral summits, prime ministerial meetings, and high-level meetings between financial authorities and the Ministry of Foreign Affairs," and evaluated that "the Korea Development Bank has also achieved results from diplomatic efforts by putting in maximum effort."
The Korea Development Bank stated, "We will do our best to proceed with the remaining procedures for the approval as swiftly as possible."
Currently, 55 Korean financial institutions operate branches in Vietnam. This is the second largest number of overseas branches after the United States, which has 62 branches.