Sumitomo Mitsui Trust Group is preparing to move into Vietnam’s asset management industry, with the entry expected as early as next year through a joint venture with a state-owned lender, reported Nikkei.
The planned company will be set up with Bank for Investment and Development of Vietnam.
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Under the proposed structure, Sumitomo Mitsui Trust will own 49% of the venture and BIDV will hold 51%, the report said.
The business is expected to offer investment funds and manage money entrusted by clients.
In line with Vietnamese rules, its investments will be limited to domestic assets.
Sumitomo Mitsui Trust is targeting about $1.9bn 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.
The bank has roughly 1,100 branches nationwide.
Japanese lenders in Southeast Asia have traditionally concentrated on financing Japanese companies and supporting merger and acquisition activity, noted Nikkei.
Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group have been expanding their presence in the sector 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.
In April, Sumitomo Mitsui Trust Bank (SMTB) and Hunter Point Capital (HPC) agreed a partnership aimed at expanding access to alternative investment solutions in Japan.
HPC is an independent investment firm that provides strategic capital and partnership support to alternative asset managers.
Through the platform collaboration, Japanese investors will have an opportunity to gain exposure to ownership stakes in a portfolio of “category-leading” alternative asset managers.
