HSBC has acquired a 10% stake in the Vietnamese insurance company, Vietnam Insurance Corporation (Bao Viet) for US$225mn. This investment makes the bank the sole foreign strategic partner of Bao Viet.
Under the terms of the partnership, HSBC will offer the Vietnamese company technical assistance across all its businesses, with a focus on further enhancing its insurance capabilities. This will include the provision of training to Bao Viet employees and the secondment of specialists to work alongside them.
Bao Viet is based in Hanoi and has 126 branches and 400 sub-branches. As of the end of 2006, the Bao Viet group had total assets of US$1.039bn.
Stephen Green, group chairman of HSBC Holdings remarks: “This investment and strategic partnership with Bao Viet reflects a growing commitment to Vietnam, and is in line with HSBC’s stated strategy of targeting investment at high growth markets with international connections. Vietnam is one of the fastest growing economies in Asia, with average GDP growth of more than 7% in the past 10 years.”