Noi, Mar. 31 (VNA) - The State Bank of Viet Nam (SBV)
recent decision to allow foreign bank branches and joint venture
banks to freely open accounts at overseas banks aims to boost their
operation in Viet Nam, said an SBV official.
Huu Dung, Acting Director of the SBV's Department for Banks and
Non-bank Credit Organisations, said the move was part of the bank's
on-going efforts to create a level playing field for all financial
institutions in Viet Nam.
move also showed the SBV's increased capacity in dealing with
foreign banks as a market regulator that no longer takes
administrative action to intervene in the market, Dung said.
reforming policies for foreign financial institutions in Viet Nam,
Dung said the SBV is revising Decree
No. 13 on the organisation and operation of foreign banks in Viet
revised decree, expected to be issued by the end of this year, will
allow foreign banks to establish wholly-foreign-owned banks in Viet
Nam with legal status similar to Vietnamese banks.
revisions will focus on reducing restrictions on foreign banks'
operation in line with the Viet Nam - US Bilateral Trade Agreement
and the Government's commitments made during negotiations on the
country's access to the World Trade Organisation. Noteworthy, the
restriction on capital mobilisation in VND by foreign individuals
and legal entities will be gradually removed towards a common legal
framework for all financial institutions.
capital in Vietnamese dong that foreign branches in Viet Nam are
currently allowed to mobilise is limited at a maximum rate of 50
percent of their registered capital. For US banks, the figure is 500
SBV also plans to issue regulations to encourage foreign banks to
invest in Viet Nam's financial market, such as to increase the 10
percent limit on share ownership by foreign banks in joint stocks
bank in Viet Nam.
also spoke about the satisfactory results of the operation of
foreign-invested finance establishments in Viet Nam over the past
few years. In 2003, 27 branches of foreign banks, four joint venture
banks, three finance leasing companies and 42 rep. offices of
foreign credit organisations in Viet Nam continue operating
fruitfully. The total property of almost all branches of these banks
and joint ventures increased, with high increase in outstanding
debts, improved service quality, drops in the rate of overdue debts.
All joint venture banks operated profitably. Their profit increased
by 23 percent last year.
offices of foreign credit organisations also operated effectively,
becoming a reliable bridge between foreign investors and Viet Nam.
Through these rep. offices, a number of lending projects and credit
agreements have been signed between foreign credit organisations and
Vietnamese economic establishments. Rep. offices actively support
parent bank to broaden agent relationship with banks in Viet Nam,
and help Viet Nam's banking system in personnel training.-Enditem