[Bank Southeast Asia Expansion Record] 'Number One' Shinhan Captivates Even Vietnam's Wealthy

1993 Local Entry
Top Foreign Bank in Assets and Channels
VIP Tax and Wealth Management Consultation
Popular Asset Management Service Center
Favorable Due to Strong Hallyu Wave

Korean banks have primarily expanded overseas into Southeast Asia. While advanced countries with developed financial sectors leave little room for entry, Southeast Asia offers great growth potential and a high favorability toward Korea. Employees dispatched locally are struggling through difficult life abroad. We examine the current status of banks’ expansion into Southeast Asia and hear their stories of market pioneering. [Editor’s note]

Photo by Shinhan Vietnam Bank, Ho Chi Minh City Headquarters. Shinhan Vietnam Bank operates its local branches and counters in a manner similar to those in Korea.

Shinhan Bank turned its eyes to the global market early on and has focused on Vietnam. Since entering the local market in 1993, 29 years ago, it now ranks first among foreign banks in Vietnam in both assets and number of channels. In particular, Shinhan Bank operates a PWM center (Private Wealth Management service) locally, securing even the demanding wealthy Vietnamese customers and solidifying its position.

On the 13th, Lee Daegun, Head of Strategy at Shinhan Vietnam Bank, told Asia Economy in an interview, "By operating PWM branches, we are recruiting many wealthy Vietnamese clients." Shinhan Bank runs PWM branches similarly to those in Korea. The VIP standard in Vietnam is a deposit amount of 50 million KRW. Last year, the average monthly income of Vietnamese citizens was about 230 USD (approximately 270,000 KRW). Due to the severe wealth gap in Vietnam, VIPs are mainly high-ranking government officials, and there are also asset owners worth hundreds of billions of KRW. Shinhan Bank gains favor by providing tax and financial consulting services to Vietnamese VIP clients. Especially since the number of channels is not as diverse as local banks, they also offer non-face-to-face consultations through video systems.

Lee Dae-gun, Head of Strategy Division, Shinhan Vietnam Bank

In particular, due to the strong Korean Wave (Hallyu) in Vietnam, perceptions of Korean banks are generally favorable. Lee explained, "As a foreign bank, there may be disadvantages such as language compared to local banks, but we leverage the Korean Wave as an advantage." Wealthy Vietnamese and the younger generation show considerable interest in Korea. Shinhan Bank is also focusing on attracting Vietnam’s MZ generation (Millennials + Generation Z) by partnering with institutions like Ban Nang University. Moreover, the characteristic kindness of Korean banks has moved the hearts of Vietnamese people. Lee said, "In Vietnamese society, banks tend to be authoritative or have certain barriers, but customer-centered friendly services stand out compared to local banks, becoming a strength."

Shinhan Bank has put effort into localization in Vietnam. Lee explained, "All retail-related branches are localized, with Vietnamese branch managers running operations." However, the composition of branch counters follows the Korean Shinhan Bank model. Shinhan Bank applies successful models experienced in Korea, such as mobile banking strategies, to Vietnam. Lee said, "While operations are conducted by locals, integrating Shinhan Bank’s successful models serves as an opportunity to spread advanced financial services."

Shinhan Vietnam Bank’s pride is the ‘Amazing Journey,’ a cultural program supporting local employees. The concept is to conquer the highest mountain, involving a 2-day, 1-night hike or trips to areas usually hard to visit, with the company covering expenses. Since Vietnam is long from north to south, many employees rarely travel, so the program is well received.

Having established its position as a foreign bank in Vietnam, Shinhan Bank aims to maintain an advantage in future competition with local banks. While focusing on localization, it also plans to emphasize becoming a ‘digital bank.’ The key is to successfully transfer and implement digital financial technologies and service products tried in Korea to Vietnam. Lee said, "We will emphasize Korea’s advanced financial image and provide convenient services to the Vietnamese people."

This content was produced with the assistance of AI translation services.