UK-based HSBC Holdings has entered into an agreement to acquire a 10% stake in Vietnam Insurance (Bao Viet) for approximately $255 million, as a result of which HSBC will become the company's sole foreign strategic partner.

Under its partnership with Vietnam Insurance (Bao Viet), HSBC will offer the Vietnamese company technical assistance across all of its businesses, with a focus on further enhancing its insurance capabilities. This will include the secondment of specialist employees and the provision of training to Bao Viet.

Stephen Green, group chairman of HSBC, said: This investment and strategic partnership with Bao Viet reflects a growing commitment to Vietnam, and is in line with HSBC’s stated strategy of targeting investment at high-growth markets with international connections. Vietnam is one of the fastest growing economies in Asia, with average GDP growth of more than 7% in the past 10 years.

We are honored to be able to play a leading role through this landmark transaction in the first equalization of a major state-owned enterprise in Vietnam. The deal also complements HSBC’s growing presence in the country’s banking sector – where we were the first foreign bank to receive approval for a 15% strategic investment in a domestic Vietnamese bank, Techcombank – and reinforces our commitment to build presence in emerging markets.

Le Quang Binh, chairman of Bao Viet, said: Our vision to remain the leading insurance and financial services company in Vietnam has now been strengthened by our strategic partnership with HSBC, one of the world’s major financial services companies. Together with HSBC, we plan to expand our product and service scope, further strengthen our staff qualifications and explore the use of bancassurance to increase our business.