KDB wins Vietnam approval to open Hanoi branch after six-year wait

The headquarters of Korea Development Bank in Yeongdeungpo District, Seoul. (KDB)

State-run Korea Development Bank said Tuesday it received final approval from Vietnam’s central bank to open a Hanoi branch, securing a long-sought foothold in the Southeast Asian market.

KDB said the license was granted on Jan. 14, more than six years after it first submitted the application in July 2019. It also marked the first such approval issued to a foreign bank since 2021, the lender said.

“The approval was secured despite Vietnam’s conservative licensing stance, driven by a combination of South Korea’s diplomatic support — including two bilateral summits, prime ministerial talks, and high-level meetings involving financial regulators and the Foreign Ministry — and Korea Development Bank’s sustained efforts," the bank said.

With the Hanoi branch, KDB said it plans to leverage its strengths as a policy lender to provide services in corporate finance, investment banking and project finance, while helping deepen the practical foundation for financial and industrial cooperation between South Korea and Vietnam.

“This license marks a decisive milestone beyond simply opening a branch, signaling the bank’s formal entry into Vietnam’s financial market as a long-term institutional partner,” a KDB official said.

"Through the Hanoi branch, KDB will support the Korean companies' overseas expansion and contribute to Vietnam’s economic development as a responsible financial partner."