Bank of India's Kalamna Branch. (Photo: www.worldtravelserver.com)
Bank of India (BOI) last weekend opened its first branch in Vietnam, becoming the first Indian bank to make such a move in the Southeast Asian country, according to Ho Chi Minh City’s portal.
The branch, the 61th overseas one of BOI, is located in the center of Ho Chi Minh City and has a paid-up capital of $15 million. Its license will expire in 99 years.
Vietnam has emerged as an important highlight in India’s Look East policy and a large number of Indian companies are looking at Vietnam. Thus the opening of the Indian government-run bank is expected to boost trade and investment activities between the two nations, according to a BOI executive.
Vietnam-India trade surpassed $9 billion in fiscal year 2015, above the target of $7 billion set for that year, according to statistics of the Indian government’s statistics. The figure is aimed to reach $15 billion by 2020.
Indian firms have invested $1.1 billion in more than 100 projects in Vietnam.
Data of the State Bank of Vietnam shows that Vietnam is now home to 50 overseas bank branches and five wholly foreign-owned banks namely ANZ Vietnam, Hong Leong Vietnam, HSBC Vietnam, Shinhan Vietnam and Standard Chartered Vietnam.