Process is to be completed within two years.
On March 26, the State Bank of Vietnam (SBV) agreed to allow Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) to convert its Laos branch in order to expand its banking services.
Operating under the name Sai Gon Thuong Tin Bank Lao Limited (Sacombank Lao), it will be based in the Laos capital of Vientiane, with an investment capital of $39 million.
As part of the deal, SBV requires Sacombank to open the converted branch within 24 months. After obtaining approval by agencies in Laos, Sacombank has a responsibility to report to SBV within 14 working days before opening.
Thus far, a number of Vietnamese banks have opened fully-owned entities in Laos. In January, Vietinbank made a similar move to SBV with their branch in Laos.