100 per cent Foreign-Owned Bank Permitted in Vietnam Now

The foreign banks will be allowed to set up 100 per cent foreign owned branches in Vietnam from April 1 following Vietnam’s WTO entry commitments, a state newspaper reported.

 

There are some conditions for 100 per cent foreign owned banks setting up in Vietnam, said Governor of State Bank, Le Duc Thuy.

 

They must have a mother bank owning more than 50 per cent stake of the Vietnam branch, and total assets of at least US$10 billion.

 

The State Bank has received about 8 applications to establish 100 per cent foreign owned branches in Vietnam. So far none have been licensed.

 

Under Vietnam’s WTO entry commitments, as of April 1, 2007, 100 per cent foreign owned banks will be allowed to operate in Vietnam. These foreign owned banks will be allowed to provide nearly all the same services and receive the same treatment as domestic banks. (Liberated Saigon, Vietnam Panorama)