Funds will assist development of SMEs
The Bank for Investment and Development of Vietnam (BIDV) last week signed a Memorandum of Understanding to provide a credit line of $30 million over the next five years to Myanmar's Small and Medium Industrial Development Bank (SMIDB).
The MoU is aimed at capacity building and technology transfer in the banking sector as well as monetary and foreign exchange activities, according to SMIDB, and its staff will be provided with further training in Vietnam to serve the development of the country's SMEs. "Myanmar is striving to meet the development demand of SMEs, through which we support our country's economic development and industrialization," said Mr. U Maung Myint, Minister of Industry and Chairman of SMIDB. "This preliminary agreement is a special milestone in our cooperation."
On the same day, Myanmar's Ministry of National Planning and Economic Development granted a license to BIDV and its partner to establish a financial company called BIDV Finance Company Limited, which will provide money deposit and transfer services in Yangon. The company was established with 70 per cent of capital coming from BIDV and 30 per cent from the Financial Micro Consumption Mahar Bawaga of Myanmar. At first it will focus on microfinance, deposits, money transfer and financial activities, in accordance with legal regulations in Myanmar.
Mr. Tran Bac Ha, Chairman of BIDV said that: "The establishment of the BIDV Financial Company affirms the long-term presence of BIDV in Myanmar. The company also aims at supporting community development, assisting in poverty alleviation and contributing to sustainable development in Myanmar."