Sumitomo Mitsui to Invest in Vietnam's Top Consumer Lender

Tokyo, April 29 (Jiji Press)--Japan's Sumitomo Mitsui Financial Group Inc. has announced a plan to take a 49 pct equity stake in top Vietnamese consumer lender VPBank Finance Co. as early as October. Through the deal, estimated at 100 billion to 150 billion yen, the megabank group aims to strengthen its operations in the Asia market with strong growth potential. According to Sumitomo Mitsui's announcement Wednesday, VPBank Finance is a wholly owned subsidiary of Vietnam Prosperity Joint Stock Commercial Bank, a major lender in the Southeast Asian country. VPBank Finance, which trades as FE Credit, controls about half of the country's consumer finance market. Sumitomo Mitsui will invest in the company through an affiliate in the hope of generating profits in the market, where double-digit annual growth is expected. The Japanese company is strengthening its financial operations in Asia, mainly in Indonesia, where it acquired a local bank. It also hopes to expand its businesses in the Philippines and India. END