The Bank for Investment and Development of Vietnam (BIDV) and Phuong Nam Company July 26 jointly set up an investment and development company in Cambodia with a chartered capital of US$100 million.
The Investment and Development Joint Stock Company of Cambodia (IDCC) will focus on investment activities, merges and acquisitions.
IDCC is in negotiations to acquire a 90 per cent stake in a private Cambodian bank to form the Bank for Investment and Development of Cambodia (BIDC) with an expected chartered capital of US$50 million.
Currently, Cambodia has only 24 commercial banks with few services and this is a good opportunity for Vietnamese investors to enter the market, said Tran Bac Ha, BIDV chairman at a press conference in Hanoi on July 23.
About 400 Vietnamese enterprises that are doing business in Cambodia can be promising clients for BIDC, partly contributing to investment and trade promotion between the two countries, Ha added.
BIDV also plans to set up the Vietnam Cambodia Insurance Company (CVI), in which IDCC will hold a 90 per cent stake.
In addition, the bank plans to establish an association of Vietnamese investors in Cambodia by August to promote investment and trade between the two countries.
Last year, trade between Vietnam and Cambodia reached US$1.7 billion, according to the Ministry of Industry and Trade of Vietnam. The figure is expected to hit US$2 billion next year.
In terms of investment, Vietnamese companies are pouring money into hydropower, mining, telecommunications, tourism, trade, finance and banking.
The main investors are Viettel, Electricity of Vietnam, National Oil and Gas Group (PetroVietnam), Coal and Mining Industries Group (Vinacomin), Vietnam Rubber Group, Vinamilk, Sacombank, Logistics Germadept Corporation and Toserco Company. (Investment)
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