BIDV to invest in Myanmar, Czech

BIDV to invest in Myanmar, Czech

Bank for Investment and Development of Vietnam (BIDV) will promote the investment in the two new markets of Myanmar and the Czech Republic, said Chairman Tran Bac Ha on the bank’s road show to promote its initial public offering (IPO) on Sunday.

Representatives of BIDV’s board of directors answer the questionsraised by investors regarding the launch of its IPO

Ha deemed Myanmar a potential market with great economic openness after 30 years of underdevelopment. As for the Czech Republic, BIDV was now promoting a financial investment worth US$7 million, or some VND147 billion, with the contribution of the Vietnamese community in the foreign country.

BIDV has made strong outbound investments in recent years.

Previously in June 1999, BIDV cooperated with the Foreign Trade Bank of Laos to establish the Laos-Vietnam Joint Venture Bank. BIDV last year began taking profit in Laos, with the return on equity (ROE) ratio at 19% in both last year and this year. In the Cambodian market where it has been operating since 2008, the local bank also recorded profit albeit modest.

Also at the launching event on Sunday, investors expressed their concern over the rather low profit of BIDV in nine months. In response, a board member of the bank attributed it to the declining mobilized capital from economic organizations due to lower ceiling deposit rate, along with the thousands of billions of dong extracted for risk prevention.

Chairman Ha said this is the appropriate time to launch IPO as the macro-economic factors are recovering.

vietnamnet