Commonwealth Bank of Australia (CBA) and Vietnam International Bank (VIB) have completed arrangements for a strategic partnership, after regulatory approvals were confirmed in Vietnam.

CBA said on Tuesday that it had taken a 15 per cent stake in VIB.

CBA will help VIB enhance its operational and commercial capabilities, risk management and competitiveness.

The arrangements, spanning the next five years, include shared business initiatives, which are expected to see VIB emerge as a full service bancassurance group.

As part of the strategic partnership, VIB will expand its board to include two CBA representatives.

VIB will also appoint CBA executives to several management positions as it undergoes a major transformation to cope with growth and increasing competition.

CBA said that consistent with the strategic partnership agreement signed earlier this year, CBA will request an increase in the VIB investment to 20 per cent - the maximum investment allowed by the State Bank of Vietnam - at the earliest opportunity.