Vietnam bank opens office in Laos

The Bank for Investment and Development of Vietnam (BIDV) opened a representative office in Laos during a visit to Laos by the Vietnamese prime minister last week.

Mr Nguyen Tan Dung (fourth right) and Mr Thongsing Thammavong (third right) at the opening of the representative office of the Bank for Investment and Development of Vietnam.

The BIDV is the oldest commercial bank in Vietnam and was founded in 1957. As a long-established bank, BIDV has funded many investment projects in key economic areas of the country. BIDV has also built the country's largest customer base and helped to implement prestigious development projects and economic programmes in the country.

The BIDV is a partner in the Lao-Viet Joint Venture Bank, which is incorporated and registered in Laos and is a joint enterprise with the Banque pour le Commerce Exterieur Lao (BCEL).

In recent years the Lao government has made good progress in its plan to strengthen and modernise state banking and finance institutions to boost economic growth.

In the five years from 2006 to 2010, the banking sector in Laos has been gradually developed and banks are now flourishing, providing a variety of banking and financial services.

According to a report from the Bank of the Lao PDR, there are now more than 20 commercial banks in Laos, many of which have opened as a result of government policy to promote investment in the sector and provide greater access to banking services.

Banks from Thailand, Australia, Cambodia, and Vietnam now have branches in Laos and many offer competitive interest rates on loans to attract more customers. This results in greater competition and gives banks the impetus to improve their performance.

When Laos joined the ASEAN free trade area in 2008, it anticipated the removal of all trade restrictions in the commercial banking sector by 2015 and has allowed overseas banks to set up and deliver banking services in the country.

vientiane times

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