Taiwan bank eyes foreign investment to Laos
Taiwan bank eyes foreign investment to Laos
The upward trend of ban king establishments in Laos is continuing despite a prohibition on new domestic banks, as foreign operators look at the promising outlook for the Lao economy .
In line with this trend, Tuesday saw the formal opening ceremony of Cathay United Bank in Vientiane, the leading bank based in Taiwan, aiming to contribute in this development period.
The opening ceremony was witnessed by Governor of the Bank of the Lao PDR Dr Somphao Phaysith, Deputy Governor of the Bank of the Lao PDR Ms Vatthana Dalaloy and other senior banking officials.
In his opening remarks, Chairman of Cathay United Bank Mr Chen Tsui Pei said the presence of the bank signals the first Taiwanese bank in Laos and it is also set to support the rapid growth of the Lao economy by bringing more investors from Taiwan.
“The bank has the largest banking network among Taiwan's private banks, however the overseas expansion was established worldwide, including in America, Mainland China, Hong Kong and some Asean countries,” he said.
Mr Chen said the Lao eco nomy has experienced robust growth in the recent years and the rate of economic growth was above 8 percent Laos, which is higher than mainland China and Taiwan .
“Laos is widely witnessed by investors all over the world after the country has become a member of the World Trade Organisation in early 2013,” he said, saying that the inauguration of the bank represents a strong interest in the Lao market.
He also unveiled that the trade between Laos and Taiwan was recorded at US$17 million in 2013, a 50 percent increased since 2012.
In 2014, the figure of trade is currently around US$19 million, showing the upward trend in the imminent economic and trade relations between the two countries.
Dr Somphao Phaysith also said “The presence of Cathay United Bank in Laos is on right track due to the country's economic environment.”
He added that this was a significant moment for commercial banking competition in Laos as the bank will serve as a bridge for bringing investors from Taiwan to Laos.
Laos has a total of 37 commercial banks, making it much easier for access to financial services, according to Dr Somphao.
