State-owned, Joint Stock Banks Make Maiden Cooperation
The Bank for Investment and Development of Vietnam (BIDV) and Nam A Commercial Joint Stock Bank on July 5 signed a cooperation deal in Ho Chi Minh City to expand their mutual banking operations. his is the first cooperation between a state-run bank and joint stock one.
The two sides will join hands in such sectors as capital mobilization, credit development, banking products and services, securities trading, insurance and training.
BIDV pledged to help Nam A bank develop capital mobilization services, fund, foreign currency trading, derivative and payment products. am A bank, in turn, will take part in BIDV’s projects.
The two sides will assist each other in participating in credit projects under ODA and rural financial projects funded by the World Bank.
BIDV and Nam A bank will jointly deploy bilateral payment system and consider jointly using ATM system. They plan to develop non-life insurance network via BIDV’s insurance company (BIC).
Nam A bank, with 15 years of operation, has an annual growth of more than 30 per cent, with 70 branches nationwide by the year’s end. The bank is now preparing to set up Nam A Securities Company, Nam A Insurance Company.
BIDV has total asset of VND200 trillion (US$12.5 million), with a growth of 20 per cent for consecutive years. It now has a network of over 130 branches nationwide.
This bank is now fishing necessary procedures to form Saigon-Trung Luong-My Thuan-Can Tho Expressway JSC and Aviation Leasing Company in the third quarter this year.
BIDV plans to launch initial public offering in the fourth quarter of 2007. (VnEconomy, Vietnam Financial Times)
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