The State Bank of Vietnam, the country’s central bank, Sept 8 issued licenses for two British banks, Hong Kong and Shanghai Banking Corp (HSBC) and Standard Chartered, to set up 100 per cent foreign owned banks in Vietnam.
These are first two foreign banks to win such permissions in Vietnam, indicating Vietnam's strong commitments to WTO accession.
HSBC Vietnam and Standard Chartered Vietnam will be established under the form of one-member liability limited firms.
HSBC Vietnam has a registered capital of VND3 trillion, to be headquartered at No.235 Dong Khoi Street in Ho Chi Minh City, while Standard Chartered Vietnam has capital of VND1 trillion and based at No.49 Hai Ba Trung Street in Hanoi.
The two commercial banks, with lifespan of 99 years, are allowed to raise deposits, provide credit, payment, treasury and other services.
HSBC Vietnam and Standard Chartered Vietnam will receive the license Sept 9 on the occasion of the UK’s Prince Andrew to Vietnam. They must complete all necessary procedures to start operation within 12 months since being licensed.
Also Sept 9, Standard Chartered will launch online banking service in Vietnam with the witness of Prince Andrew.
Thomas Tobin, general director of HSBC in Vietnam said his bank will put the affiliate into operation as soon as possible.
HSBC hopes to open a new chapter in Vietnam’s banking history, with the acknowledgement and support from Vietnamese government, he said.
“This is a milestone in the 138-year history of HSBC in Vietnam,” he said, adding that the affiliate will enable HSBC to expand distribution network to the existing customers as well as the new ones.
HSBC is one of biggest foreign banks in Vietnam, with two branches based in Hanoi and Ho Chi Minh City and a representative office in Can Tho and more than 1,000 staff. It is holding a 10 per cent stake in Bao Viet Group and has got permission to raise ownership in Techcombank from 14.4 per cent to 20 per cent. (SBV, Local sources)
Vietnamese
