CBA plays in Vietnam sandpit 22 April 2010 4:43PM Ian Rogers Commonwealth Bank continues to find merit in minority investments in banks in Asia. CBA last night said it had agreed to enter a "strategic partnership" with Vietnam International Bank.CBA left the timing, and to some extent the terms, of the agreement and partnership vague in the media release published through the Australian Securities Exchange. This referred only to plans for CBA to take a 20 per cent stake in VIB "at the end of completion".A more detailed statement released by VIB in Vietnam and reported by Reuters makes clear that this investment is planned to occur by the end of 2011. It appears the plan is to invest up to the usual ceiling of 15 per cent for foreign investors (under local law) as soon as the two banks obtain regulatory approval, and to increase that to 20 per cent under a second stage approval process.Reuters also reported that VIB has a market capitalisation of US$235 million, based on its share price in the unofficial and unregulated securities market. This suggests the CBA investment will be in the order of US$50 million.Current shareholders in VIB include Bank for Foreign Trade of Vietnam and Vietnam Bank for Rural and Agricultural Development.Eleven other foreign banks hold minority stakes in banks in Vietnam.VIB has 400,000 personal banking customers and 10,000 business customers, CBA said.The bank put the "unbanked" percentage of the population in Vietnam at 85 per cent, while income per capita is less than US$900 per year according to the World Bank; and both statistics tend to imply limits to profit potential from the investment rather than opportunity. (VIB and CBA no doubt plan to solicit growth among families and businesses with connections outside the country.)