New VietinBank to expand investment, trade
New VietinBank to expand investment, trade
VietinBank has established VietinBank Lao Limited to attract more Vietnamese investors to Laos and increase trade between the two countries.
The official opening ceremony took place in Vientiane on Saturday and was attended by the Mayor of Vientiane, Dr Sinlavong Khountphaythoun, Governor of the Bank of the Lao PDR, Mr Somphao Phaysith, Minister of Industry and Commerce, Ms Khemmani Pholsena, Vietnamese Ambassador to Laos, Mr Nguyen Manh Hung, business operators and government officials from Laos and Vietnam.
The bank's headquarters are currently located on Khoun Boulom Street in Chanthabouly district, with a service unit in Pakxe district, Champassak province.
VietinBank has upgraded its subsidiary from being a branch of the main bank to a separate body incorporated under the name VietinBank Lao Limited after it had been operating here since 2012. The new bank currently has US$50 million of registered funds.
This improvement is just one of VietinBank's strategic development plans to boost its involvement in international business, its Managing Director Mr Le Duc Tho said at the ceremony.
VietinBank chose Laos to be its second expansion country after Germany on its way to developing an overseas network, because Vietnam and Laos have a special relationship, att achment and trust which are constantly developing in depth and breadth.
With the good cooperation and assistance of the government, especially the Bank of the Lao PDR and other sectors, the VietinBank has succeeded in achieving its business targets after it began operations in Laos in 2012.
Average assets of the Lao branch stood at US$41 million kip in 2012 which increased to US$114 million, while its loan portfolio increas ed at about the same rate.
Over three years of operation here the bank was able to develop a strategic plan for expansion which included establishing the bank in Laos as a separate entity to provide better conditions for development and a wider range of services for its customers.
With the suppo rt and assistance of the Lao and Vietnamese governments, VietinBank has completed all the application procedures to grow and develop its personnel as well as the provision of services.
Upgrading from being a branch of a f oreign bank to being a bank incorporated in Laos, VietinBank Lao Limited will now be able to a djust its range of services as well as establish branches of its own according to the needs of its customers.
The bank already has plans to seek approval for the establishment of branches in Savannakhet, Borikhamxay and Luang Prabang provinces.
The new headquarters now under construction on Lane Xang Ro ad in Vientiane will be completed in 2017 at a cost of US$25 million, and will show to potential customers the and significance of the bank and its plans for a long term future here.
VietinBank is committed to complying with the laws and regulations of the Lao PDR and the operation of the supe rvisory system here ensuring quality, safety, efficiency, sustainable growth and transparency in order to become an accredited bank in Laos, contributing to economic development.
The government believes the bank will form a bridge to enhancing cooperation and relationships with Vietnamese businesses interested in investment and commercial opportunities in Laos.
