|
Lao-Viet Bank plans major upgrade
The Lao-Viet Bank (LVB) plans to invest about 34.4 billion kip (US$4.3 million) to upgrade its services amid rising competition in Laos.
The joint venture between BCEL bank and Bank for Investment and Develoment of Vietnam on Friday signed a contract worth about US$4.3 million with FPT Group, a leading Vietnamese banking software provider, to equip LVB with core banking software.
The installation of the international banking software will enable the bank to deliver better services to customers, in particular those who want to transfer funds to accounts held at other banks which are members of the bank group.
The new technology will also allow LVB to reduce the cost of transaction services and hopefully attract more customers amid rising banking business competition in Laos.
There are more than 20 banks in Laos, all of which have invested large amounts of funds to improve services and attract new customers in the country of about 6.5 million people.
According to a report from LVB, the assets of the joint venture reached US$330 million after only 12 years of operation in Laos – about a 30 percent increase compared to when the bank was established in 1999. The annual average growth of the bank's asset is 25 percent.
LVB experienced major success in 2009 and 2010 as economic cooperation between Laos and Vietnam strengthened.
To date, over US$500 million in transactions have passed between the two countries through the bank, according to LBV.
LVB currently has US$230 million out in loans and deposits totalling US$200 million. The insurance arm of the bank, the Lao-Viet Insurance Company, is Laos' second largest insurer in terms of market share and has plans for further expansion.
According to a meeting between Lao Deputy Minister of Industry and Commerce Ms Khemmani Pholsena and her Vietnamese counterpart Mr Thanh Bien, bilateral trade between Laos and Vietnam saw a major increase last year.
In 2010, two-way trade between Laos and Vietnam reached US$490 million, up 17.2 percent over 2009. In the first half of this year, the figure stood at US$349.8 million, a year-on-year increase of 65.8 percent.
The two neighbouring countries plan to lift bilateral trade to US$2 billion in 2015. The two countries will offer other preferential tariffs for mutual businesses and a reduction in taxation rates.
Politburo member and Lao National Assembly President Mrs Pany Yathortu, a number of bank managers and staff attended the signing ceremony held at the Lao Plaza Hotel in Vientiane on Friday.
vientiane times
|
