Sixth Taiwanese Bank Enters Vietnam
The State Bank of Vietnam (SBV), Vietnam’s central bank, has endorsed the Taiwan’s Taishin International Bank to open a representative office in Ho Chi Minh City, becoming the sixth Taiwanese bank to engage in the fast-growing economy of Vietnam.
According to the licence, Taishin International Bank’s rep office will operate in Vietnam for five years from January 11.
The Ho Chi Minh City office will act as a liaison point for conducting market research for future operations as well as implementing projects on behalf of the Taishin International Bank in Vietnam.
It will also promote and supervise the implementation of contracts, agreements and projects signed between the foreign bank and its Vietnamese partners.
However, as a representative office, Taishin International Bank is not allowed to offer other bank services in Vietnam under any form, and after five years can extend its licence with approval from the Vietnam’s central bank.
There are currently four Taiwanese banks with operating branches in Vietnam - Chinfon Commercial Bank, First Commercial Bank, Chinatrust Commercial Bank and the International Commercial Corporation - and five representative offices of five Taiwanese banks of Bank Sinopac, Chinatrust Commercial Bank, First Commercial, the Union Bank of Taiwan and Cathay United Bank Co., Ltd.
Vietnam now has five State-run commercial banks, 38 joint stock commercial banks, four joint venture banks, 28 foreign bank branches, and 45 foreign bank representative offices.
Vietnam’s economy posted an economic growth of 7.69 per cent in 2004, and the target for this year is 8.5 per cent.
Taiwan was the second largest foreign investor in Vietnam by value, with 1,259 licensed investment projects worth US$7.26 billion, of which more than US$3.1 billion was disbursed. Trade between Vietnam and Taiwan reached US$3.66 billion in 2003, up from US$3.35 billion in 2002.
Vietnamese
