Prime Minister Nguyen Xuan Phuc (r) and MUFG Bank’s President Kanetsugu Mike on February 22. Source: VGP
The move would contribute positively to Vietnam’s economic development, which requires strong support from the Vietnamese government for this matter, stated Mike in a meeting with Prime Minister Nguyen Xuan Phuc on February 22.
As of present, VietinBank has met requirements on capital adequacy ratio (CAR) following Basel II standards, playing a major part in the country’s high economic growth rate, Mike continued, adding that with MUFG Bank as its strategic investor, the capital mobilization capability of the Vietnamese lender would be improved.
Over the past five years, the number of Japanese companies investing in Vietnam, many of which are MUFG’s customers, has increased sharply, Mike informed.
Mike stated that Vietnam’s economy under the government’s leadership would continue to maintain its strong growth momentum, expecting government agencies to create favorable conditions for international banks and financial institutions investing in the country’s banking sector.
The MUFG Bank’s executive said Vietnam’s previous investment cooperation events held in Japan have been essential facilitating the capital inflow from Japan to Vietnam. Mike hoped the Vietnamese government would continue to organize similar events with larger scale.
At the meeting, Prime Minister Nguyen Xuan Phuc said as Vietnam and Japan have forged a extensive strategic partnership, cooperation in the finance-banking sector is also strong.
Under this context, Vietnam’s government is committed to supporting foreign enterprises, including MUFG to do business in the country, Phuc said.
Recently, Vietnam has issued the development strategy for Vietnam’s banking sector, aiming to join top 4 countries in ASEAN. This would require significant contribution from VietinBank, Phuc stated.
Phuc highly regarded Japan’s ODA and the investment capital inflow from Japanese companies to Vietnam.
Disbursement of FDI projects in Vietnam in 2018 jumped to a record high of US$19.1 billion, representing an increase of 9.1% year-on-year despite the ongoing trade tensions between the United States and China,
Among 112 countries and territories that have invested in Vietnam this year, Japan took the lead with US$8.59 billion, accounting for 24.2% of total investment. South Korea came second with US$7.2 billion or 20.3% of total investment, while the third place belonged to Singapore with US$5 billion or 14.2%.
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