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TAQ1109.003 UK paper: Vietnam bank sector remains attractive
Vietnam is attractive for the foreign financing circle after banks HSBC and Standard Chartered secured approval to be the first overseas banks to incorporate local operations in the fast-growing economy, a UK newspaper said.
“ Vietnam remains attractive for overseas banks because it represents on of the least penetrated markets in Asia , with just one in 10 of its 87 million population holding a bank account,” the Financial Times reported on September 10.
According to the paper, the government’s liberalisation of the banking sector makes the market more attractive.
Opening financing market is in Vietnam ’s commitment to join the World Trade Organisation (WTO) in 2007.
Both UK-listed banks boast long histories in the Southeast Asian country. HSBC opened its first branch in Vietnam in 1870 and Standard Chartered followed in 1904. Each bank has the maximum two branches in Vietnam , serving the wholesale banking requirements of Asia-based companies that are opening factories in the country.
HSBC aims to open at least 10 more branches in the next two years, while Standard Chartered has signalled plans to open up to 30 branches in the next four years, the paper added.
VNA
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