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Domestic banks branching out across nation
The banking industry is becoming busier to wards the end of the year as an increasing number of domestic banks open new branches and offices to increase their presence in the market.
Leading this trend, the Asia Commercial Bank (ACB) increased its network to 178 branches and transaction offices earlier this month after opening three offices in Rach Gia (Kien Giang province), Long Hoa (Tay Ninh province) and Vinh Long (Vinh Long province). The bank has ambitions of raising the number of its branches and offices to 186 by the end of this year.
The Tien Phong (Vanguard) Bank, which joined the domestic market only five months ago, has also opened two branches in Hanoi and Ho Chi Minh City . The bank will inaugurate an additional four offices in Hanoi during November, followed by more offices in HCM City , Da Nang , Can Tho and Hai Phong.
Meanwhile, another newly-established bank, Lien Viet Bank, has steadily built up a network of 12 branches and offices and plans to increase the number to 17 by the end of 2008.
Also participating in the race to increase their market presence are the Vietnam International Bank (VIB Bank), the Dai A Bank, the Bac A Bank, the Sai Gon Bank and the Phuong Nam Bank.
Commenting upon this trend, economic expert Pham Chi Lan said that, at a time when the State Bank of Vietnam stops granting licences for the establishment of new banks, existing banks should increase the promotion of their operations and expand their networks. Together with improving their professional capacities, local banks also need to expand the scope of their services, as they still suffer from limitations in these areas.
Even though the banking workforce market is not as tight as it was at the end of last year, many financiers have identified the scarcity of qualified professionals as a great challenge facing banks when they open new branches and offices.
In addition, a number of banks will face a high level of risk related to the quality of credit and operations management due to their poor foundations in terms of administration and technology, they said.
According to Liet Viet Bank executives, the expansion of their branch and office networks also requires banks to increase their competitive edge in interest rates, service charges, products and their quality of service.
Banks face numerous difficulties in expanding their networks, but this expansion will help customers to enjoy a better range of products and services and to obtain easier access to bank loans.
VNA
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