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Japan's Sumitomo Mitsui Eyes Vietnam Asset Management Entry
25 Aug
Summary
- Sumitomo Mitsui Trust Group plans Vietnam entry next year.
- Joint venture with Bank for Investment and Development of Vietnam.
- Targeting $1.9bn assets under management initially.
Sumitomo Mitsui Trust Group is preparing to launch operations in Vietnam's asset management sector, with an entry anticipated in the coming year. This strategic move will be realized through a joint venture established in partnership with Bank for Investment and Development of Vietnam (BIDV).
The proposed venture will see Sumitomo Mitsui Trust hold a 49% stake, while BIDV will own the remaining 51%. The company's services will encompass offering investment funds and managing client assets, with investments restricted to the Vietnamese domestic market.
Initially, the venture aims to manage around $1.9 billion in assets. Sumitomo Mitsui intends to utilize BIDV's vast customer base, comprising approximately 1,100 branches nationwide, to propel the business forward and establish it as one of Vietnam's prominent asset managers.
This expansion into Southeast Asia aligns with Sumitomo Mitsui Trust's broader strategy to increase its presence in the region, complementing its existing operations in the US, Europe, and Singapore. The group's move follows similar expansions by other Japanese financial institutions like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.
