United Overseas Bank Limited has received preliminary approval from the State Bank of Vietnam to establish a foreign-owned subsidiary bank in Vietnam.

UOB will be the first Singaporean bank to be granted a foreign-owned subsidiary bank license. The announcement was made by the State Bank of Vietnam during an official visit to the country by Singapore’s Prime Minister, Le Hsien Loong.

“We were the first Singapore bank to open a foreign bank branch in Vietnam in 1995 and since then have maintained an unwavering commitment to the country,” says Wee Ee Cheong, deputy chairman and chief executive officer at UOB.

The State Bank of Vietnam has said it will issue UOB an in-principle approval for the FOSB license by June 2017. Under the license, the bank will be able to expand its branch network in Vietnam, thereby enabling UOB to extend financial support and to offer best-in-class products and service to consumers and businesses beyond Ho Chi Minh City.