The State Bank of Vietnam (SBV)’s Governor Nguyen Van Binh has approved
Sai Gon Thuong Tin Bank (Sacombank) opening a wholly-owned subsidiary
bank in Laos.
This will pave the way for the lender to further expand services into neighbouring countries.
The
new bank, named Sai Gon Thuong Tin Bank Lao Ltd. (Sacombank Lao), will
be headquartered in Vientiane’s Hengboun Street and have a charter
capital of 39 million USD.
Sacombank Lao will be part of the
transformation of the existing branch of Sacombank in Laos, which was
opened in late 2008. Under Laos’ regulations, foreign banks are allowed
to establish a wholly-owned subsidiary bank only after a year of its
branch being operational in Laos.
As per the SBV’s approval,
Sacombank will have to open its new bank in Laos within two years of the
approval. Sacombank Lao’s duration of operation would be defined as
long as the mother bank was still operated. It would be allowed to
execute banking activities in Laos in accordance with Lao and Vietnamese
laws.
In case Sacombank Lao received an investment licence
granted by Lao authorities, Sacombank would have to report to the SBV
within 14 days before the launch of the new bank.
Earlier,
Sacombank’s Director Phan Huy Khang said that Lao authorities also
approved in principle for Sacombank to set up a wholly-owned subsidiary
bank in Laos.
Sacombank is among Vietnam’s first banks to do
business in Laos. The other Vietnamese banks, which operate in Laos,
include Vietcombank, BIDV, Vietinbank and Sai Gon Hanoi Bank (SHB).
Apart
from Sacombank, the central bank in January allowed Vietinbank to set
up its wholly-owned bank in Laos by upgrading its existing branch.
SHB has also revealed its plan to open a wholly-owned unit in Laos.
Along
with Laos, Cambodia is also a target market for Vietnamese banks,
considering the current presence of BIDV, Sacombank, Agribank, Military
Bank and SHB in the country and owing to its potential for tourism,
mining, hydropower, oil and gas, and industrial plants.-VNA