Thailand’s Krungsri sets sights on Vietnam expansion with SHB Finance acquisition

Krungsri will acquire the 50% remaining shares of SHB Finance over the next three years.

Thailand’s Bank of Ayudhya, also known as Krungsri, is eyeing full operations in Vietnam through a full acquisition of SHB Finance.

In a press release, Krungsri revealed that it plans to complete acquisition of the remaining 50% of SHB Finance’s shares in the next three years. Krungsri currently holds 50% shares in SHB Finance.

Krungsri successfully completed the acquisition of SHB Finance, a consumer finance business in Vietnam, in May this year. It currently holds 50% shares in SHB Finance and will complete the remaining 50% in the next 3 years under the terms of agreement and subject to approval from the relevant regulators.

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Wanchairabin Jitwattanatam, Krungsri head of regional business division, noted Vietnam’s large population of 100 million people, its diverse workforce, and high economic growth rate of 8% as attractive particularly for foreign investors.

Krungsri’s acquisition of SHB Finance has the objective to reinforce its knowledge and expertise in consumer finance which will strengthen the capability of marketing, distribution channels and risk management so as to enable it to design the consumer finance products that meet the Vietnamese customer needs and bolster sustainable success of the business over there,” Jitwattanatam said in a statement.