Vietcombank Targets to Issue 1.2 Millionth Domestic Cards by End-2005

The Bank for Foreign Trade of Vietnam (Vietcombank) has announced that its mobilised capital has been growing well with total amassed capital as of the end of May reaching VND124 trillion (USUS$7.9 billion). Mobilised capital in Vietnamese dong totalled VND51.96 trillion (USUS$3.3 billion) and amassed capital in US dollars amounting to USUS$4.53 billion.

A strong increase in capital mobilised from local residents was attributed to the bank’s promissory note issuance with progressive interest rates and the saving promotion programme “Discovering the World with Vietcombank”. The programme has two special prizes both worth VND85 million (USUS$5,400) for a fully paid tour for two people to Europe.

Besides this, the headquarters of Vietcombank has raised interest rates on annual savings in Vietnamese dong from 0.36 per cent to 0.96 per cent and rates on savings in US dollars by 0.2-0.4 per cent per year.

Regarding credit activity, Vietcombank has been focusing on improving the quality of their lending with total outstanding loans as of the end of May amounting to VND51 trillion (USUS$3.2 billion) and an overdue debt ratio at 3 per cent. Branches of Vietcombank that have highest credit growth are Nha Trang, Vung Tau, Dak Lak and Binh Duong.

Vietcombank recently signed contracts financing huge projects such as the Haiphong Thermal Power Plant, Pleikroong, the purchase two A321 aircraft for Vietnam Airlines, assets purchasing for Vosco and Vietnam Maritime Corp., purchasing a 100,000-tonne oil vessel for Oil Transport Co., project building in the Viet Hung Urban Area and a project producing ingot steel.

Vietcombank has so far issued 700,000 domestic credit cards. The bank is building sales promotion programmes for welcoming the one-millionth cardholder. It is targeted to issue its 1.2 millionth domestic card by the end of 2005.

Lan Anh