More 100% foreign-owned banks in Vietnam

The State Bank has just approved in principle to allow Public Bank Berhad to establish a 100% foreign-owned bank.

The State Bank of Vietnam has just issued a document approving in principle for Malaysia's Public Bank Berhad (PBB) to establish a 100% foreign-owned bank in Vietnam. This will be the 6th 100% foreign-owned bank operating in Vietnam, after HSBC, ANZ, Standard Chartered, Shinhan Vietnam and Hong Leong Bank.

Malaysia’s largest bank, Maybank, has also invested in the Vietnamese market. Maybank is currently a strategic shareholder of An Binh Bank (ABBank). This unit has also opened two branches in Hanoi and Ho Chi Minh City. In addition, in the middle of last year, CIMB - the country’s second largest bank - also announced that it would apply for a license to operate in Vietnam and Myanmar.

Previously, the Bank for Investment and Development of Vietnam (BIDV) transferred all its capital contributions at VID Public Joint Venture Bank to PBB. VID Public Joint Venture Bank was established by both parties with a capital contribution ratio of 50/50 since 1992. This is also one of the first two joint venture banks licensed in Vietnam. To date, after 3 capital increases, VID Public Bank has 62.5 million USD in charter capital.

According to Vnexpress