Australia's ANZ bank has announced plans to sell its retail banking operations in Vietnam to South Korea's Shinhan Bank.

ANZ said the move would assist its strategy to simplify operations and improve capital efficiency.

Farhan Faruqui, the CEO of ANZ's International Banking division, said the sale would allow the company to pay more attention to institutional banking, which is the group's largest business area in Asia. 

ANZ's sale in Vietnam is expected to go through later this year.