Vietnam may soon have 100% foreign owned bank
06/08/2010 - 76 Lượt xem
On the sideline of the 2nd annual Vietnam Investment Forum this morning, HSBC Chief Executive Officer (CEO) in Vietnam Alain Cany confirmed that the group was taking necessary steps to set up a bank in Vietnam.
HSBC hopes to open 5-10 branches in Vietnam within the next four or five years, Mr Cany said.
Under the commitments Vietnam made for joining the WTO, as of April 1, 2007, 100% foreign owned banks will be allowed to operate in Vietnam, and will receive the same treatment as domestic banks. These foreign owned banks will be allowed to provide nearly all the same services as domestic banks.
Foreign bankers must have the minimum assets of $10bil to be eligible to set up a bank in Vietnam. In order to set up a new branch, the parent banks must have assets of more than $20bil and the minimum capital of $15mil for every branch.
Soon after Vietnam joined the WTO, many foreign bankers expressed their desire to set up banks in Vietnam and asked about requirements and procedures. HSBC is the first bank to follow through with its plan to set up a subsidiary in Vietnam.
Mike Geoghegan, HSBC Chief Executive Officer, attended the Vietnam Business Forum this morning, and he is expected to have a meeting with Prime Minister Nguyen Tan Dung, Governor of the State Bank of Vietnam Le Duc Thuy and Minister of Finance Vu Van Ninh. The details of the meeting have not been revealed, but Mr Geoghean said that the topic would be the future of HSBC in Vietnam as well as the long-term investment commitments of the group in Vietnam.
Together with the plan to set up a bank in Vietnam, HSBC is also planning to double its capital contribution to Techcombank (the Vietnam Technological and Commercial Joint Stock Bank) as soon as the Government raises the ownership proportion foreign strategic partners can hold in a local bank from 10% to 20%.
HSBC would pay $85mil to buy another 10% in Techcombank, three-fold higher than the sum of $27mil it paid for 10% of Techcombank shares in 2005.
Source: VNE
