Prudential plc has agreed to sell Prudential Vietnam Finance Company Ltd to Shinhan Financial Group for US$151 million while establishing a new bancassurance partnership to enhance their operations in Vietnam and Indonesia.

Information on the Target

Prudential Vietnam Finance Company Limited (PVFC) has been a significant player in Vietnam's financial landscape since its establishment in 2006, being the first foreign non-bank financial institution licensed for consumer finance lending in the country. As of now, it ranks as the fourth-largest consumer finance entity by outstanding loan balance. This strategic positioning makes it an attractive acquisition target as it demonstrates both growth and stability in the consumer finance sector.

The sale of PVFC, which is set for a total consideration of US$151 million, is part of Prudential plc's broader strategy to refine its focus in Vietnam, where it remains dedicated to its life insurance and asset management operations through Prudential Vietnam Assurance Private Limited and Eastspring Investments Fund Management Company.

Industry Overview in Vietnam

The consumer finance industry in Vietnam has been witnessing significant growth driven by a rising middle class and increasing demand for personal loans. Over the past few years, the sector has expanded rapidly due to the younge