Foreign banks are racing to expand retail services by launching moreservices and subsidiaries as Vietnam approaches the time foropening the door to all banking services.
In line with thecountry’s WTO commitments, foreign banks operating in Vietnam willbe allowed to provide banking services and products on par with localbanks from January 1, 2011.
Hong Kong Shanghai Banking Corp(HSBC) inaugurated its fifth subsidiary in Vietnam in late September,while Citibank and Standard Chartered Bank launched their retail bankingservices in Hanoi in mid-October.
Foreign banks alsolaunched new products and services, with the aim of narrowing marketshare gaps with local banks that currently account for 90 percent ofretail market share.
US giant, Citibank introduced smart bankingservices aiming at young, high- tech customers and is aiming to provideinternet and mobile phone retail banking services.
StandardChartered Bank, along with seven-day services, plans to link to thelocal Smartlink’s ATM card alliance system from next January, becomingthe first foreign bank in Vietnam to make this connection.
Ashok Sud, Standard Chartered Bank Vietnam General Director,expressed his pleasure with establishing a “fair” market for both localand foreign banks. All products and services his bank wants to providehave received permission, he said.
Although possessing only amoderate retail market share, foreign banks treasure the most wealthyclient group, including individuals with monthly income of 10 millionVND (about 500 USD) or above.
According to Standard CharteredBank, Vietnam ’s per capita income is estimated to be 2,000 USD ayear by 2015, resulting in an increase in the use of banking services.
Butthere is a concern among financial experts that in the near future,local bank services such as international payments, trade assistance andproject investment could be taken over by foreign banks because oftheir superior capacity in technology and management as well asfinancial strength.
Therefore, apart from strengthening andimproving management and business capacity, local banks have invested inimproved technology, expanding services to the private business andforeign-invested business groups along with state-owned firms./.
In line with thecountry’s WTO commitments, foreign banks operating in Vietnam willbe allowed to provide banking services and products on par with localbanks from January 1, 2011.
Hong Kong Shanghai Banking Corp(HSBC) inaugurated its fifth subsidiary in Vietnam in late September,while Citibank and Standard Chartered Bank launched their retail bankingservices in Hanoi in mid-October.
Foreign banks alsolaunched new products and services, with the aim of narrowing marketshare gaps with local banks that currently account for 90 percent ofretail market share.
US giant, Citibank introduced smart bankingservices aiming at young, high- tech customers and is aiming to provideinternet and mobile phone retail banking services.
StandardChartered Bank, along with seven-day services, plans to link to thelocal Smartlink’s ATM card alliance system from next January, becomingthe first foreign bank in Vietnam to make this connection.
Ashok Sud, Standard Chartered Bank Vietnam General Director,expressed his pleasure with establishing a “fair” market for both localand foreign banks. All products and services his bank wants to providehave received permission, he said.
Although possessing only amoderate retail market share, foreign banks treasure the most wealthyclient group, including individuals with monthly income of 10 millionVND (about 500 USD) or above.
According to Standard CharteredBank, Vietnam ’s per capita income is estimated to be 2,000 USD ayear by 2015, resulting in an increase in the use of banking services.
Butthere is a concern among financial experts that in the near future,local bank services such as international payments, trade assistance andproject investment could be taken over by foreign banks because oftheir superior capacity in technology and management as well asfinancial strength.
Therefore, apart from strengthening andimproving management and business capacity, local banks have invested inimproved technology, expanding services to the private business andforeign-invested business groups along with state-owned firms./.
