Sumitomo Mitsui Financial Group Inc. said Monday it plans to invest 35.9 trillion dong ($1.5 billion) in Vietnam's VP Bank as part of its efforts to seek growth opportunities in Southeast Asia.

The investment by the Japanese group will make it a leading shareholder in the bank, with a 15 percent stake. VP Bank, the second biggest private lender in Vietnam known for its competitiveness in loans for smaller businesses, will become an affiliate of Sumitomo Mitsui.

SMFG plans to expand VP Bank's business by matching it with Japanese companies that have ventured into Vietnam. It is also considering putting its officials on the bank's board.

VP Bank, which owns around $23 billion in assets, posted a net profit of $707 million in 2022, up 55 percent from the previous year.

In 2008, SMFG invested in Vietnam's Eximbank to own 15 percent of it, but said in January this year that it ended the capital tie-up due to a lack of synergy.

==Kyodo

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