Vietnam Licenses 7th Foreign Bank

Tuan Minh

16:35 03/09/2016

BizLIVE - The Vietnamese central bank has granted a license to Malaysia’s CIMB Bank to establish a wholly owned banking subsidiary in Vietnam.

Vietnam Licenses 7th Foreign Bank

CIMB Bank has received a license to open a wholly owned unit in Vietnam. Photo:

The State Bank of Vietnam (SBV), the country’s central bank, has licensed Malaysia’s second largest bank – CIMB Bank Berhad – to establish a wholly owned bank in Vietnam.
CIMB Bank (Vietnam) Limited will be addressed at Phan Chu Trinh Street No. 16, Hoan Kiem district, Hanoi, and has a registered capital of 3.2 trillion dong ($143.3 million).
The Malaysian bank is allowed to provide full banking services in Vietnam such as taking deposits, lending, banking guarantee, issuing credit cards and opening payment accounts for clients.
The Vietnamese banking authority in March this year granted a license to Malaysia’s Public Bank Berhad to operate a banking unit in Vietnam. The Malaysian bank earlier acquired the 50% stake in an equally-owned joint venture with state-owned Bank for Investment and Development of Vietnam (BIDV).
With the license, CIMB Bank (Vietnam) has become the seventh wholly foreign-owned lender in Vietnam.
At the start of August 2016, Seoul-based Woori Bank received preliminary approval SBV to establish a wholly-owned subsidiary in the Southeast Asian country.
Vietnam is now home to five operational banks, which are ANZ Bank Vietnam, Hong Leong Bank Vietnam, HSBC Vietnam, Shinhan Bank Vietnam, and Standard Chartered Bank (Vietnam). HSBC Vietnam is the largest overseas bank in the country with a registered capital of nearly $335 million.