HCMC – Several local banks are readying themselves for strategic moves to invest in other countries, focusing first on neighboring markets and then on those destinations where their customers are moving to, said central bank officials.
Dang Thanh Binh, deputy governor of the State Bank of Vietnam, told the opening ceremony of the Military Bank’s branch in Cambodia’s Phnom Penh last week that several local banks were following suit.
“Several Vietnamese banks have been deploying their plans to expand their business overseas,” he said.
Some other banks that are speeding up their plans include Vietnam Maritime Commercial Bank (Maritime Bank) and Saigon-Hanoi Bank, the latter mulling a branch in Cambodia,said another central bank official.
According to a well-informed source, Maritime Bank has undergone necessary procedures to set up its wholly-owned bank in Cambodia. Also, it intends to establish other offshoots in Laos and Cambodia, including 100% foreign-invested branches, banks and affiliate companies active in securities, finance leasing, insurance and overseas remittances.
Le Cong, general director of Military Bank (MB), confirmed to the Daily that his bank’s next possible investment destinations are Africa or Eastern Europe.
Tran Bac Ha, chairman of Bank for Investment and Development of Vietnam (BIDV), asserted that the bank has been expanding its business activities to Laos, Cambodia, Czech and Myanmar.
Pham Huy Hung, chairman of Vietnam Bank for Industry and Trade, or VietinBank, informed his bank had established a representative office in Frankfurt in Germany last year and inaugurated the first branch there in September. In the long run, VietinBank will upgrade the Frankfurt branch into a full-service bank besides opening branches in Berlin, Czech, Poland, Britain and France, he added.
There are four domestic credit institutions operating in Cambodia for the time being. The Vietnamese Government always supports and encourages lenders to accelerate outbound investment while the Cambodian Government also applies incentive policies to lure investment from foreign investors, especially from Vietnamese enterprises.
In the meantime, a large number of Vietnamese firms are doing business in Laos, creating good opportunities for local lenders to develop their financial services there. MB’s CEO Le Cong reported his credit institution has achieved good growth performance for this year’s operation, with total outstanding balances of approximately US$100 million and a profit of US$500,000.
“We will regularly host customer conferences to share business experiences in Cambodia and Laos and will continue to invest in these markets when necessary,” noted Cong. He hinted at the need to upgrade a branch into the 100% Vietnamese-invested bank as only a 100% foreign-invested bank can legally serve its clients outside its location.
