Foreign Banks Eye Setting up Branches in Vietnam
Foreign banks are seeking licenses to set up wholly-owned units in Vietnam, the Market Watch quoted a Vietnamese central bank official as saying.
The State Bank of Vietnam, or central bank, has received ten applications for setting up new banks or branches of foreign institutions. Of the applications, three ask for setting up new banks and seven for forming branches, the official said.
GE Money, a financial services unit of the US’s General Electric Co. (GE), and the Commonwealth Bank of Australia (CBA) are among the applicants seeking to open their own banks in Vietnam.
The foreign credit institutions are keen to take advantage of new rules, after Vietnam officially joined the World Trade Organization (WTO) earlier this month, that opened up the fast-expanding banking market to them.
Under WTO commitments, Vietnam will allow the establishment of banks that are 100 per cent foreign-owned from April. Foreign banks are required to have assets of at least $10 billion if they want to establish units in the country.
Vietnam now has 43 banks, plus 31 branches of foreign banks and five foreign joint venture banks. (Market Watch)
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