Sumitomo Mitsui Trust Group is preparing to enter Vietnam's asset management industry as early as next year through a joint venture with state-owned lender Bank for Investment and Development of Vietnam, according to a Nikkei report. Under the proposed structure, Sumitomo Mitsui Trust will own 49% of the venture and BIDV will hold 51%, with the business expected to offer investment funds and manage money entrusted by clients, limited to domestic assets under Vietnamese rules. Sumitomo Mitsui Trust is targeting about $1.9 billion in assets under management in the early phase and plans to develop the business into one of Vietnam's bigger asset managers by using BIDV's customer network of roughly 1,100 branches nationwide. The move comes as Japanese lenders in Southeast Asia have traditionally concentrated on financing Japanese companies and supporting merger and acquisition activity, while Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group have been expanding through stakes in local financial institutions. Sumitomo Mitsui Trust's overseas operations are focused on the US, Europe and Singapore, but the group is increasing its efforts across Southeast Asia, including Vietnam.
Sumitomo Mitsui Trust Group, Inc.Entering Vietnam asset management via JV with BIDV, targeting $1.9B AUM, expanding Southeast Asia presence.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Mitsui Financial Group, Inc.
