BIDV to help boost Vietnamese investment
BANK for Investment and Development of Vietnam (BIDV) is planning to boost Vietnamese investment into Myanmar once its new branch starts operating later this month, the bank officials said.
“As soon as the bank’s branch has been launched Vietnamese investment and trade will increase significantly,” chief executive officer Mr Dang Hai Nha told The Myanmar Times. “We are ready now to serve our customers here.”
The Myanmar Investment Commission approved US$175 million in foreign investment from Vietnam in the 2014-15 fiscal year – $10 million higher than from Thailand.
Bilateral trade between Vietnam and Myanmar grew roughly 25 percent year by year from 2010 to 2015 – reaching $435 million in 2015, according to a BIDV press release.
The Vietnamese lender will open its branch on July 31 having formally received its licence on July 1. The bank has invested $85 million in initial capital, and plans to hit at least $300 million in total assets after three years and secure a place amongst the top five foreign banks operating in Myanmar, BIDV said.
BIDV won its licence along with lenders from India, South Korea and Taiwan in a second round of licence applications earlier this year. But Mr Dang said BIDV had been in close cooperation with local banks since it opening its rep office in 2010
BIDV has already signed financial services agreements and partnership with most local banks in Myanmar, he said.