Many Vietnamese banks have been racing to open branches in othercountries to increase their competitiveness and facilitate Vietnamesecompanies’ overseas investments, according to an article published onthe English language news portal DtiNews on August 19.
Aftergetting the approval from the State Bank of Vietnam (SBV), Ho Chi MinhCity Housing Development Bank (HDBank) said that it was competingprocedures to open a representative office in Myanmar, scheduled to beactive by the end of the year.
Myanmar promises to be anattractive place for investors, particularly for Vietnamese companiesthat are already doing business in the country. Not only HDBank, but anumber of others are making plans to expand into Myanmar.
VietnamBank for Investment and Development (BIDV) and Vietnam Joint StockCommercial Bank for Industry and Trade (Vietinbank) have both beenlicensed to set up their offices in Myanmar.
In September of2011, Vietinbank became the first Vietnamese bank to set up operationsin Germany. The bank also opened a branch in Lao, and has plans forfurther expansion this year.
Phan Huy Khang, General Director ofSaigon Thuong Tin Commercial Joint Stock Bank, was quoted as saying thatVietnamese banks are also open to certain risks when operating abroad.They must compete with local banks and even other Vietnamese banks inthe same country.
Experts say that expanding operations inforeign countries will help banks to open up new markets andopportunities as well diversify their products. This would also helpVietnamese companies, many of which are also expanding into neighbouringcountries.
Dr. Le Dang Dat, from University of Economics, Ho ChiMinh City, however, warned that the State Bank of Vietnam should keepclose scrutiny over the financial capacity of banks which invest abroadso as to mitigate risks for banks and their customers. Dat added thatVietnamese banks should improve their risk management systems ingeneral.-VNA
Aftergetting the approval from the State Bank of Vietnam (SBV), Ho Chi MinhCity Housing Development Bank (HDBank) said that it was competingprocedures to open a representative office in Myanmar, scheduled to beactive by the end of the year.
Myanmar promises to be anattractive place for investors, particularly for Vietnamese companiesthat are already doing business in the country. Not only HDBank, but anumber of others are making plans to expand into Myanmar.
VietnamBank for Investment and Development (BIDV) and Vietnam Joint StockCommercial Bank for Industry and Trade (Vietinbank) have both beenlicensed to set up their offices in Myanmar.
In September of2011, Vietinbank became the first Vietnamese bank to set up operationsin Germany. The bank also opened a branch in Lao, and has plans forfurther expansion this year.
Phan Huy Khang, General Director ofSaigon Thuong Tin Commercial Joint Stock Bank, was quoted as saying thatVietnamese banks are also open to certain risks when operating abroad.They must compete with local banks and even other Vietnamese banks inthe same country.
Experts say that expanding operations inforeign countries will help banks to open up new markets andopportunities as well diversify their products. This would also helpVietnamese companies, many of which are also expanding into neighbouringcountries.
Dr. Le Dang Dat, from University of Economics, Ho ChiMinh City, however, warned that the State Bank of Vietnam should keepclose scrutiny over the financial capacity of banks which invest abroadso as to mitigate risks for banks and their customers. Dat added thatVietnamese banks should improve their risk management systems ingeneral.-VNA
