Photo: Duc Anh
Bank moves up from respresentative office on July 1.
The partly-equitized Bank for Investment and Development of Vietnam (BIDV) has officially obtained a license to open a branch in Myanmar, effective from July 1.
BIDV has had a representative office in the country since April 2010 and has held the Chairmanship of the Association of Vietnamese Investors in Myanmar (AVIM). It has been looking to secure a branch license since 2010 but its first application last year was denied by Myanmar’s central bank.
The branch, with capital of $85 million, is expected to generate assets of $300 million within three years. “BIDV is the first bank in ASEAN to successfully obtain a banking license in Myanmar,” Chairman Tran Bac Ha said in a press release.
Vietnam and Myanmar have recorded tremendous achievements in the six years the Joint Statement on 12 key sectors has been implemented, with total registered investment by Vietnam in Myanmar increasing from $23.64 million in 2010 to $691.57 million in 2015 and two-way trade turnover rising from $152 million in 2010 to $434.7 million in 2015.
The Myanmar Government has allowed nine foreign lenders to set up and offer limited banking services in the country, such as providing loans in foreign currency to foreign companies in the country. Those banks include the ANZ Banking Group, Bangkok Bank, Malayan Banking Bhd (Maybank), Mizuho Bank, United Overseas Bank, Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. (SMBC) and Overseas-Chinese Banking Corp Ltd.
BIDV has more than 18,000 officers, employees and financial consultants in 127 branches and 787 transaction offices, and thousands of ATMs and POS in cities and provinces nationwide. It recorded total assets of VND857 trillion ($39 billion) in 2015, an increase of 24 per cent, and completed its merger with Mekong Housing Bank (MHB), according to the bank's 2015 financial report.
It also has branches in Laos, Russia and Cambodia, where it trades in three key sectors: banking, insurance and financial investment.
In Cambodia BIDV has a number of subsidiaries, such as the Investment and Development Company of Cambodia (IDCC), Investment Banking and Development of Cambodia (Cambodian BIDC), and Cambodian Insurance Company (CVI).
Vietnam’s largest partly-private lender by assets has also cooperated with international partners, such as Bank VID-Public Venture (with a Malaysian partner), Bank of the Lao-Vietnamese joint venture (with a Laotian partner), Vietnam Russia Joint Venture Bank – VRB (with a Russian partner), BIDV Tower Joint Venture Company (with a Singaporean partner), and venture investment management firm BIDV – Vietnam Partners (with a US partner).