Foreign banks now can open wholly owned subsidiaries

Foreign banks can apply to establish 100 per cent foreign-owned subsidiaries from this week, after the State Bank published its long-awaited guidelines for such establishments.
investors are left in limbo

Investors are left in limbo

Foreign investors wanting to take a strategic partnership in a joint-stock commercial bank will have to wait a few more months for approval from the government, due to a lack of clear criteria for such acquisitions.

Move on listed firms’ foreign holdings cap

The State Bank of Vietnam has proposed that the government not lift a cap on listed companies’ foreign holdings this year to limit negative effects from possible capital withdrawal on the domestic capital market.

Big banks short changed

Giant global banks, such as HSBC and Standard Chartered Bank, may have to wait at least one more year to open their wholly-owned subsidiaries in Vietnam, while those from South Korea, Russia and Taiwan may get in sooner.

Trade accounts to a hit

If the new barrier does not come into effect, we will raise the barrier to a higher level and even stop opening [new accounts]

E-transactions online

When state agencies are able to recognise e-documents and e-signatures, the country will be able to offer electronic services
state ramps up bank equitisation process

State ramps up bank equitisation process

Four leading state-owned commercial banks, Vietcombank, MHB, BIDV and Incombank, will be equitised this year, under a new decision issued by the Prime Minister.
local banks pushed to cash in during 2008

Local banks pushed to cash in during 2008

Domestic banks are being pushed to pump up capital levels or merge with each other in order to increase chartered capital and take advantage of a booming financial market in 2008.
agribank banks on bonds for added growth

Agribank banks on bonds for added growth

State-owned Agribank, the country’s largest by total assets, will take its first step toward equitisation through a bond issuance in October.
citibank sets up share acquisition

Citibank sets up share acquisition

The US-based Citibank has signed a memorandum of understanding with Eastern Asia Bank, the country’s sixth-largest joint stock firm, paving the way for a possible share purchase in the future.

Rural banks on the way out

Vietnam will remove its rural commercial joint-stock banks, with the central bank’s rules requiring the unification of the rural banks with urban commercial joint-stock banks nationwide in the period to 2010 as the first step in preparation for the sector’s global integration.
mof to ease the flow of securities

MoF to ease the flow of securities

The Ministry of Finance has removed some of the barriers to foreign individuals and institutional investors in over-the-counter securities to facilitate remittances back to their countries after two years of unclear tax regulations.
foreign stake holdings of banks capped

Foreign stake holdings of banks capped

The State Bank of Vietnam has fixed the total portion of stakes held by foreign institutional and individual investors in both non-listed and listed local commercial banks at 30 per cent of a joint stock bank’s chartered capital, rather than lift it to 49 per cent as previously drafted.

SBV lays down the law

The State Bank of Vietnam (SBV) will lift the required minimum chartered capital to newly established commercial banks in Vietnam from next year to VND5 trillion to boost competitiveness and stablise the local banking system.
foreign banks prepare to branch out

Foreign banks prepare to branch out

The banking industry is bracing itself for the opening of foreign banks’ 100 per cent foreign-invested subsidiaries by April next year, following the signing of the Vietnam-US bilateral WTO market access agreement, which will open the doors of banking services to foreign investors.