Vietnam sees increasing presense of ASEAN bank branches

More banks from ASEAN member countries are expected to open branches in Vietnam when it is opening its banking market wider to meet the requirements of the emerging ASEAN Economic Community and the World Trade Organization, local media reported Wednesday.

The Siam Commercial Bank of Thailand, which has quickened the pace of bank branch establishment in Vietnam along with Malaysia, Singapore and other ASEAN members, is waiting for approval from the State Bank of Vietnam to establish a branch.

Siam Chief Executive Officer Arthid Nanthawithaya said the branch is expected to come into operation by the end of this year with capital reserves of 75 million U.S. dollars.

Another Thai lender, Kasikorn Bank, opened two representative offices in Hanoi and Ho Chi Minh City earlier this year.

In March, the Vietnamese central bank approved, in principle, of Kuala Lumpur-based Public Bank Berhad's setting up a wholly- Malaysian invested bank in Vietnam, while Malaysia's Maybank already has two branches in Hanoi and Ho Chi Minh City.

The Singapore-headquartered United Overseas Bank is also seeking to establish a wholly Singaporean invested bank in Vietnam.

The ASEAN Economic Community, to be formed at the end of 2015, requires member states to opened the service markets in general, and banking-finance market in particular, to a level of at least 70 percent at the end of this year, and 100 percent by 2020.

To meet its commitments to the World Trade Organization, Vietnam has to fully open its banking sector to foreigners by 2020. Endi