New bank to help Lao and Chinese enterprise
New bank to help Lao and Chinese enterprise
The new La os-China Joint Venture Bank (LCNB) has been established to provide financial support to Chinese investors and Lao business people in their commercial activities.
The bank was officially launched in Vientiane on Wednesday by Deputy Prime Minister, Mr Somsavat Lengsavad and Chinese Ambassador to Laos, Mr Guan Huabing.
The launch was attended by the Governor of the Bank of the Lao PDR, Mr Somphao Phaysith, BCEL Managing Director Mr Vanhkham Voravong, LCNB Managing Director Ms Deng Yu, the Chairman of the B oard and the Managing Director of Fudian Bank, Mr Xia Shu and Mr Li Chun Hui.
They were joined by a group of other government officials alongside local and international business o perators.
The Lao bank BCEL signed a memorandum of understanding with Chinese Fudian Bank in 2009 to establish the joint venture. Fudian owns a 51 percent share in the bank, while BCEL's investment gives it 49 percent ownership of the 300 billion kip registered bank.
There are more than 30 commercial banks operating in Laos but the strong economic growth in the country means there is still room for more banks to compete.
The government is promoting the establishment of more commercial banks, aiming to help Lao people get better access to loans to expand their busi nesses.
This joint venture bank will boost trade and investment between Laos and China. Fudian is a well known Chinese bank recognised for its financial strength and technological approach to banking, while BCEL is the largest commercial bank in Laos.
This joint venture will be a model commercial bank bringing technical management and using new technology to create several products to service society.
Chinese banks now have a policy to expand business operations in L aos amid growing trade and economic cooperation between the two counties.
China is one of the top three investors in Laos, focused mainly on mining, hydropower and agribusiness.
vientiane times
