Business

Techcombank expects to gain huge profit from the divestment in TechcomFinance to Korea-based Lotte Card

By Trung Ngoc March 02, 2018 | 08:27 AM GMT+7

The divestment in TechcomFinance is expected to help the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) record an extraordinary profit of more than VND1.1 trillion (US$48.4 million) in the first and second quarter of this year.

Lotte Card will enter Vietnam's vibrant consumer finance market.

The State Bank of Vietnam (SBV) has inked the decision on approving the transfer of the entire stake in TechcomFinance held by Techcombank to Korea-based Lotte Card, a subsidiary company of Lotte Group.

Accordingly, the deal will have to be completed within three months from February 12 to May 12 since the effective date of the decision. If deal misses the deadline, the decision will automatically become void.

Previously, on January 19, SBV approved in principle the transfer of all Techcombank’s stake in TechcomFinance in accordance with the policy approved on May 22, 2017, by Techcombank’s Board of Directors.

The Investor (Korean) revealed, at that time, the deal price was estimated at 87.5 billion won, equivalent to VND1.73 trillion (US$76.3 million), 2.89 times higher than TechcomFinance's charter capital of VND600 billion (US$26.4 million).

If the deal succeeds, Lotte Card will enter Vietnam's vibrant consumer finance market. The consumer lending market has grown by 30 per cent in recent years and is now dominated by four companies including FE Credit (VPBank), Home Credit, HDSaison and Prudential Finance.

TechcomFinance was acquired by Techcombank in 2015. It used to be known as Viet Nam Chemical Finance Joint Stock Company.

According to the bank's report, in 2016, TechcomFinance focused on strengthening the operation, consolidating the system of policy documents, reporting system and maintaining existing business activities.

The total revenue of TechcomFinance reached VND33 billion (US$1.5 million); the total operating cost at VND6 billion (US$264,000) while its total pre-tax profit reached VND28 billion (US$1.23 million).

Vietnam's opportunity in a shifting global EV market

Vietnam's opportunity in a shifting global EV market

Business -  4 day

The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.

Maersk expands northern Vietnam operations with first bonded warehouse

Maersk expands northern Vietnam operations with first bonded warehouse

Business -  2 week

A.P. Moller–Maersk has launched its first bonded warehouse in Vietnam, situated in the SLP Park in Nam Dinh Vu Industrial Park, Haiphong.

T&T Group unveils $4.5 billion sports complex and theme park project in Hanoi

T&T Group unveils $4.5 billion sports complex and theme park project in Hanoi

Business -  3 week

Vietnam's T&T Group and Qatar’s JTA investment group have unveiled plan to develop a $4.5 billion international-standard sports complex and Disneyland-style theme park in Hanoi’s Dong Anh district.

Quang Nam’s mountain produce makes its debut at Mena Gourmet Market

Quang Nam’s mountain produce makes its debut at Mena Gourmet Market

Business -  3 week

This initiative aims to bring unique agricultural products from the region to visitors and consumers in Vietnam.

MiLAW Project: A breakthrough in space exploration

MiLAW Project: A breakthrough in space exploration

Business -  1 month

Michelin has been selected by NASA to participate in the research team for phase 1 of the Artemis project. The company's task involves researching and developing specialized airless wheels intended for lunar rovers.

Why the principle of “Trust” drives Bcons Group’s success

Why the principle of “Trust” drives Bcons Group’s success

Business -  1 month

Bcons Group has been leaving a lasting impression on the southern Vietnam’s real estate market. At the core of its achievements lies a single principle - “Trust” - the foundation that has propelled the company toward success and accelerated its transformation into a multi-industry conglomerate.