Standard Chartered Bank evaluates market entry

Standard Chartered Bank is exploring the possibility of setting up a fully-owned local subsidiary in Viet Nam.

"We want to incorporate 100 percent as soon as possible, as soon as the paper work is ready," said Melvyn Davies, SCB chairman, at a press briefing in Ha Noi on March 30.

"As the market opens up and the Government liberalises financial services, we at Standard Chartered intend to take advantage of the many opportunities that will become available here.

"I think the most important thing is the Government is doing an excellent job in gradually opening up the market, gradually managing reserves and developing the market. That is why foreign investors are attracted to this market."

As part of Viet Nam's World Trade Organisation (WTO) commitments, foreign banks can set up their own subsidiaries in Viet Nam as of April 1.

However, there are certain criteria, such as the parent company must have at least 10 billion USD in assets.

Standard Chartered will also build on its existing partnership with Asia Commercial Bank (ACB) and may well increase its stake in the local bank, said Davies.

Standard Chartered currently holds an 8.56 percent stake in ACB, the only bank listed on Ha Noi bourse.

Davies said the country's WTO membership would ultimately benefit Viet Nam's economy by increasing its access to foreign markets and strengthening the country's corporate governance.

"This, together with its rapidly growing economic base and position in the heart of Southeast Asia, means Viet Nam is well positioned to take advantage of emerging new global trade flows across Asia, Africa and the Middle East.

"We want to be a partner for the banks and companies that could expand internationally.. This is one of the most exciting markets I've seen in the 56 countries that we operate in."

Davies said Standard Chartered will continue building its wholesale banking presence and grow its consumer banking business over the next year.

Standard Chartered Bank now has two branches in Viet Nam. Last month it launched retail banking service in HCM City and expects to bring the service to Ha Noi soon. The bank has invested 100 million USD into Viet Nam, and employs more than 100 people.

On his trip, Davies also met with senior officials from the State Bank of Viet Nam, Ministry of Finance and the Ministry of Planning and Investment.

Source: VNA