Vietcombank plans to open subsidiary bank in Laos
Vietcombank plans to open subsidiary bank in Laos
The Commercial Joint Stock Bank for Foreign Trade of Viet Nam (Vietcombank) plans to set up a 100 per cent owned subsidiary bank in Laos with US$80 million charter capital.
According to Vietcombank, it has submitted the plan to its shareholders for approval. Under the plan, the subsidiary bank will be headquartered in capital Vientiane. It will provide finance and banking services such as deposit and credit, card payment, insurance and e-banking, besides supporting Viet Nam-Laos trade promotion and investment activities.
Vietcombank's managing board said Laos has relatively high economic growth and a large demand on capital and financial services. Besides this, trade turnover and the number of projects invested in Laos is quite significant.
Therefore, early participation in the Laos market will be a potentially useful investment opportunity for Vietcombank, the board said, adding that the plan has so far received the green light and support from Laos' relevant authorities.
In addition, the opening of the subsidiary bank in Laos is also in accordance with Vietcombank's strategies and demands to enlarge the market share.
Since 2014, Vietnamese banks such as Vietinbank, Bank for Investment and Development of Viet Nam, Agribank, Sacombank and SHB have opened subsidiaries and branches in Laos.
