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LienVietBank: The new kid on the block
LienVietBank signalled its arrival on the domestic banking market yesterday by signing a series of million-dollar contracts with both domestic and foreign partners.
Capitalised at VND3.3 trillion (US$206 million), LienVietBank has three founding shareholders of which Him Lam Ltd. Co is the largest with a 18 per cent stake, followed by the Saigon Trading Group (Satra) with 4.57 per cent and Southern Airport Services Company (Sasco) with 2.43 per cent.
At the inauguration ceremony, LienVietBank inked a contract with Credit Suisse. Under the deal, the two sides will mobilise $300 million for LienVietBank’s future projects. On the same day, the new bank also signed a contract with the Housing and Urban Development Corporation, in which both sides will co-operate to develop lending services and to boost each other’s trading activities.
Furthermore, LienVietBank also penned a deal with Agribank and Wachovia Group from the US to develop capital sources, administration, capital management and human resources.
The bank, headquartered in the southern province of Hau Giang, will soon operate two branches in HCM City and three branches in Ha Noi.
LienVietBank is the third largest joint stock bank in Viet Nam in terms of charter capital following by Vietcombank with VND15 trillion ($937 million) and Sacombank with over VND4.4 trillion ($278 million).
The new bank was granted its operating licence on Monday and plans to open for business next month.
By the end of 2010, the Hau Giang-based bank hopes to increase its charter capital to VND6.3 trillion ($393.75 million) while expanding to 20 branches and 40 transaction offices nationwide.
The arrival of LienVietBank brings the total number of joint stock commercial banks in Viet Nam to 35.
This year, the State Bank of Viet Nam plans to grant around five new joint stock commercial banks licences. LienVietBank is the first of the five to show its face which is predicted to stoke up competition on the local banking market.
At present, there are five State-owned banks in Viet Nam representing 57 per cent of the local market whereas foreign banks account for just 9.4 per cent. In addition there are 52 offices of foreign credit institutions, 989 people’s credit funds, nine financial companies,12 financial leasing companies, one social policy bank and one development bank.
VNS
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