Vietnamese state lender MB Bank, also known as Military Commercial Joint Stock Bank, will launch a mobile app for South Korean nationals living in the country in August, seeing potential in the strengthening ties between the two countries.

“Vietnamese banks are yet to offer specialized service for Koreans living in the country, making them rely on the branches of Korean banks,” MB Bank Chairman Luu Trung Thai said during an interview in Seoul on Tuesday.

Luu Trung Thai was in Korea with Vice Chairman Vu Thanh Trung as they joined Vietnamese Prime Minister Pham Minh Chinh’s visit to Seoul to deepen the business relationships between the two countries. As of 2023, over 175,000 Korean nationals are residing in Vietnam, while around 270,000 Vietnamese are in Korea.

“From August, MB Bank will offer tailored service for Koreans by launching a Korean language banking app as it sees opportunities in the growing number of Korean nationals and companies in the country,” he said, adding the app would allow automatic payments of electricity or water bills for Koreans.

MB Bank was established in 1994 by the Defense Ministry to support financing for Vietnamese defense companies. It currently serves over 20 million clients, both individual and corporate customers. It has over 300 branches across Vietnam and overseas, including Laos, Cambodia and Russia.

The state bank has also joined hands with Lotte Department Store, under Korean retail giant Lotte, which has extensively expanded in Vietnam. Customers can use the bank’s quick response code for payments at Lotte Department Stores.

“The QR code payment market has been showing sharp growth, expanding by around 30 percent in the past three years. Companies can cut down on costs with QR code payment when compared to card transactions,” MB Bank Vice Chairman Vu Thanh Trung said.

The bank further hopes to join hands with Korean commercial lenders to expand the QR code payment system in Vietnam.

“If we connect the upcoming MB Bank app for Koreans with Korean banks, Koreans who are visiting Vietnam would be able to use our QR code system through their bank apps. We are currently searching for partners,” he explained.

It has also partnered with S-tec System, a security solutions provider here. Having signed a memorandum of understanding in November, the two entities expect further cooperation to come this year.

Seeing room for further growth, the Korean and Vietnamese governments have pledged to raise bilateral trade volume to $100 billion next year. Luu Trung Thai sees a future in financing small- and medium-sized Korean enterprises in Vietnam, having worked with more than 100 Korean companies through corporate banking.

“Over the years, Korea has been proactively investing in Vietnam. We see more opportunities for the financial market. With more companies investing in Vietnam, there will be more Koreans in the country, meaning MB Bank could expand services for the population,” he said.