EXIM Thailand seeks representative office in Viet Nam
The Export - Import Bank of Thailand (EXIM Thailand) is seeking the State Bank of Viet Nam (SBV)’s support to establish its first representative office in Viet Nam.
During a meeting with the SBV’s Deputy Governor Doan Thai Son on Tuesday, Warangkana Wongkhaluang, Vice President of EXIM Thailand, said her bank wanted to open the office in Viet Nam to boost its operations in the country.
At the meeting, Son said seven Thai credit institutions already have branches or representative offices in Viet Nam, noting that the presence of Thai banks in the country had contributed to the development of the local banking system and helped promote economic, trade and investment relations between Viet Nam and Thailand.
In recent years, economic and trade co-operation between the two countries has continued to develop and achieve positive results, Son said, adding that Thailand is currently Viet Nam's largest trading partner within in ASEAN while Viet Nam was Thailand's second largest trading partner and Thailand was among the 10 largest sources of foreign investment in Viet Nam.
Many foreign banks in Viet Nam have also expanded their transaction networks and increased their charter capital in recent years in a bid to increase market share, especially in the retail banking sector. Last year alone saw the total assets of joint venture banks and wholly foreign-owned banks in Viet Nam surge sharply by up to 19.12 per cent to VND1.13 quadrillion (US$48.50 billion), an SBV report showed.
ANZ, Hong Leong, HSBC, ShinHan, Standard Chartered, CIMB, Public Bank Berhad, Woori Bank and United Overseas Bank Limited have opened wholly foreign-owned banks in Viet Nam.
According to experts, more foreign banks are expected to enter Viet Nam’s market, which has major potential with a population of nearly 100 million.
They said that Vietnamese banks needed to operate on a larger scale with huge investments in technology and products through consolidation and mergers to create stronger institutions that could compete with foreign banks.
By 2020, in accordance with commitments to the World Trade Organisation, Viet Nam will have to completely open the doors to its banking sector.