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Domestic banks increase their presence overseas

In Uncategorized on July 2, 2010 at 6:19 pm




Domestic banks increase their presence overseas


QĐND – Friday, July 02, 2010, 21:55 (GMT+7)

Many local banks have been seeking opportunities to expand their businesses abroad, particularly in similar markets or with major trading partners.


After it started to operate in Laos and Cambodia in 2008 and 2009, the Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) drew up plans to penetrate China and expand its network in Cambodia ’s key economic provinces later this year or early next year.


In addition to Sacombank, in Cambodia , two other Vietnamese banks, the Bank for Agriculture and Rural Development (Agribank) opened its first branch on June 28 this year while the Bank for Investment and Development of Vietnam (VIDV) opened its first branch in the middle of last year.


This trend is continuing as the Military Commercial Joint Stock Bank has recently announced a plan to set up a branch in Laos in 2010.


Domestic banks are also seeking ways of expanding their business in Europe. For example, the BIDV-owned Vietnam-Russia Joint Venture Bank (VBR) officially opened in Russia late last year. This is also the first fully Vietnamese bank in Europe.


Earlier, the State Bank of Vietnam allowed the BIDV, the Vietnam Bank for Foreign Trade (Vietnambank) and the Asian Commercial Joint Stock Bank (ACB) to set up representative offices in the United States.


This is being applauded by Vietnamese businesses overseas because the banks can provide them with consultancies and information on investment opportunities, services on capital arrangement, guarantees and the appraisals of partners and projects.


However, entering major markets also means facing fiercer competition, and domestic banks need to prioritise urgent issues, such as risk and the use of modern technologies if they choose to venture overseas, say experts.

Source: VNA

Source: QDND

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