This is part of the strategic cooperation agreement which was reached by both sides in Hanoi on April 21.

The CBA intends to request an increase in investment to 20 percent at its earliest opportunity. The investment is important to the development of the relationship between VIB and CBA.

Under a previous technical support programme, CBA has sent banking experts to VIB to identify skill gaps and opportunities in critical business areas like retail banking, risk management, human resources, IT, treasury and finance.

As part of the strategic partnership, a longer-term capitality transfer programme (CTP) will be established to further enhance the operational and commercial capabilities of VIB.

The two sides will also engage in an ongoing working partnership to investigate other business opportunities. CBA has extensive experience in CTP with a strong track record of commitments in China.

The Commonwealth Bank’s track record in China is a great indication of how it works with strategic partners in Asia to create long-term sustainable value to a business, said VIB Chairman Han Ngoc Vu, adding that a strategic partnership and CTP with such a strong and trusted financial institution as the Commonwealth Bank, will help VIB improve its competitiveness in the fast growing financial service industry in Vietnam.

VIB has achieved a compound annual asset growth rate of more than 40 percent in the past five years and branches have grown from 30 to 117, said Vu.

Simon Blair, Head of International Financial Services at CBA, said that despite several years of challenging economic times around the world, Vietnam has remained in a good position for long-term growth. “We want to participate in and support that growth,” he said.