Foreign banks keen on firm niche in Viet Nam
07/02/2008 11:21 am
UB.News/Hanoi - A
bevy of foreign banks would flock to Viet Nam in the coming time, as
they find the market attractive thanks to a high growth rate in exports
and rises in foreign investment capital flow, international payment and
foreign arrivals, financial experts have predicted.
ANZ bank, which opened its first branch in Ha Noi in 1993, has unveiled a plan to open between 10 and 12 more branches in Viet Nam by the end of this year after it receives permit to become a wholly foreign-invested bank here.
ANZ General Director Dam Bich Thuy said her bank’s focus will be the credit market due to its untapped potential.
Meanwhile, Standard Chartered Bank and HSBC have revealed their intention to set up branches in major urban areas this year to bring their financial services to local clients.
For its part, the State Bank of Viet Nam (SBV) has moved to facilitate foreign banks’ opening of their wholly-foreign-invested branches in line with the country’s commitment to the World Trade Organisation.
Viet Nam has committed to the world’s largest trade body that foreign banks have been allowed to establish wholly foreign-invested banks in the country as from April 1, 2007.
Since then, foreign banks enjoy the same treatment and are allowed to offer the same financial services as Vietnamese banks do, including opening branches, mobilising money in the Vietnamese dong from Vietnamese entities, and issuing unlimited credit cards.
Recently, the SBV has given the green light, though in principle, to the Commonwealth Bank of Australia , the IBK of the Republic of Korea and the Fubon bank of Taiwan to open their own branches in Viet Nam .
At the Viet Nam Business Forum late last year, Director of the Citigroup Bank in Viet Nam Charly Madan, who is also Head of the Working Group on Banking, commented that though Viet Nam’s roadmap for implementing its WTO commitments was proper, it still remained slow.
Eager to take part in the financial market in Viet Nam , President of the Europe Chamber of Commerce Alain Canny also urged “We want Viet Nam to implement its commitment as soon as possible,” expressing.
Currently, 35 branches of foreign banks are operating in the Southeast Asian country.
While waiting for Viet Nam to open up the banking sector, many foreign banks have moved to seal their presence in the country’s financial market by contributing capital to local banks.
ANZ presently owns 10 percent of the Saigon Thuong Tin Joint Stock Commercial Bank’s shares and 10 percent of the stake of other securities companies.
Currently possessing 14.5 percent of charter capital of the Viet Nam Bank for Technology and Trade (Techcombank), HSBC has asked to raise its stake to 20 percent.
Though their scope of operation has not been expanded widely yet, foreign banks and credit organisations still reaped successes in 2007, with their total assets totalling over 215 trillion VND, an 8 percent rise over 2006 and a 60 percent jump from 2005.
By the end of 2007, these foreign financial institutions net 2.4 trillion VND in pre-tax income, representing a surge of 41 percent over 2006 and accounting for 18 percent of the Vietnamese banking system’s pre-tax income.
ANZ bank, which opened its first branch in Ha Noi in 1993, has unveiled a plan to open between 10 and 12 more branches in Viet Nam by the end of this year after it receives permit to become a wholly foreign-invested bank here.
ANZ General Director Dam Bich Thuy said her bank’s focus will be the credit market due to its untapped potential.
Meanwhile, Standard Chartered Bank and HSBC have revealed their intention to set up branches in major urban areas this year to bring their financial services to local clients.
For its part, the State Bank of Viet Nam (SBV) has moved to facilitate foreign banks’ opening of their wholly-foreign-invested branches in line with the country’s commitment to the World Trade Organisation.
Viet Nam has committed to the world’s largest trade body that foreign banks have been allowed to establish wholly foreign-invested banks in the country as from April 1, 2007.
Since then, foreign banks enjoy the same treatment and are allowed to offer the same financial services as Vietnamese banks do, including opening branches, mobilising money in the Vietnamese dong from Vietnamese entities, and issuing unlimited credit cards.
Recently, the SBV has given the green light, though in principle, to the Commonwealth Bank of Australia , the IBK of the Republic of Korea and the Fubon bank of Taiwan to open their own branches in Viet Nam .
At the Viet Nam Business Forum late last year, Director of the Citigroup Bank in Viet Nam Charly Madan, who is also Head of the Working Group on Banking, commented that though Viet Nam’s roadmap for implementing its WTO commitments was proper, it still remained slow.
Eager to take part in the financial market in Viet Nam , President of the Europe Chamber of Commerce Alain Canny also urged “We want Viet Nam to implement its commitment as soon as possible,” expressing.
Currently, 35 branches of foreign banks are operating in the Southeast Asian country.
While waiting for Viet Nam to open up the banking sector, many foreign banks have moved to seal their presence in the country’s financial market by contributing capital to local banks.
ANZ presently owns 10 percent of the Saigon Thuong Tin Joint Stock Commercial Bank’s shares and 10 percent of the stake of other securities companies.
Currently possessing 14.5 percent of charter capital of the Viet Nam Bank for Technology and Trade (Techcombank), HSBC has asked to raise its stake to 20 percent.
Though their scope of operation has not been expanded widely yet, foreign banks and credit organisations still reaped successes in 2007, with their total assets totalling over 215 trillion VND, an 8 percent rise over 2006 and a 60 percent jump from 2005.
By the end of 2007, these foreign financial institutions net 2.4 trillion VND in pre-tax income, representing a surge of 41 percent over 2006 and accounting for 18 percent of the Vietnamese banking system’s pre-tax income.
Source: VNA
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