The banking sector is witnessing fierce competition between commercial joint stock banks and State-run commercial banks and between domestic banks and foreign banks. The Vietnamese commitments to the WTO entry state that the government will put to an end the protection of the finance and banking sector. Small and medium-sized banks are facing huge challenges: either developing strongly to cope with competition or merging with other banks. Hence, domestic banks are renewing and adapting to this general trend. Like other banks, the Southeast Asia Bank (SeABank) is equipping necessary and sufficient conditions to stand firmly and develop in the international economic integration process.
Previously, SeABank was known as a small commercial joint stock bank in the financial, monetary and banking market of Vietnam. At that time, SeABank only operated in Haiphong City. After two years of consolidation and development, SeABank has now become a bank of public interest and support. At present, SeABank is one of the fastest-growing commercial banks in the country in both size and quality. The bank is offering the most attractive interest rates for savings deposits on the market. SeABank is now running 29 branches and transaction points throughout the country.
To prepare for the integration of SeAbank and approach to investment and business opportunities from APEC 2006 to be held in Vietnam, SeABank has been consolidating all aspects since late 2005 to become one of the top commercial joint stock banks in Vietnam in the coming time.
SeABank commenced the sprint with the purchase of a banking administration software package by Switzerland-based TEMENOS and expected to put this software into use by late 2006. Its investment in technology will enable the quicker speed of transactions, which can handle 1,000 transactions per second, concurrently receive 110,000 clients and administer 50 million client accounts. SeABank will develop modern transaction channels like Internet banking and E-banking for individuals and businesses to shorten at-the-counter transaction time. A series of banking products will be activated from the modern technological application, and SeABank has defined this as one of its competitive advantages.
In addition, SeABank has raised its chartered capital to VND500 billion (US$31.25 million) this year. The increase of chartered capital will allow SeABank to provide bigger loans for large firms. On the other hand, the capital scale-up will help SeABank have a strong foothold on the market. SeABank is trying to double its chartered capital to VND1,000 billion in the near future.
The market expansion will help SeABank to extend businesses and increase prestige of SeABank. The bank is expanding its branch network. Since the beginning of this year, SeABank has opened such new branches as SeABank Cho Lon in Ho Chi Minh City, SeABank Binh Duong in Binh Duong Province, and new transaction offices like SeABank Phu My Hung in Ho Chi Minh City. On September 22, 2006, SeABank inaugurated its new spacious and modern branch in Lang Ha, Hanoi to serve its clients to the most convenience. This is the 10th transaction locations of SeABank in Hanoi. In the early forth quarter of 2006, SeABank will open at least four branches and transaction offices. By the end of 2006, the bank will have 40 branches and transaction offices in Vietnam.
“In the future, SeABank pledges to be a bank of the highest service and quality and the most reliable partner of businesses and individuals,” SeABank’s general director Phan Thanh Tuyen said.
Le Hien
Vietnamese
