Thai bank hopes to set up HCMC branch by the end of this year.
Thai newspaper The Nation has reported that the Siam Commercial Bank (SCB), Thailand's third-largest bank by assets, is hoping to generate significant income growth in CLMV countries - Cambodia, Laos, Myanmar, and Vietnam - in the years to come by establishing close business relations with partner banks in Myanmar and setting up a branch in Vietnam by the end of this year.
SCB's overseas business is currently quite small and in CLMV countries it is yet to have branches in either Myanmar or Vietnam. The countries as a whole present major potential for growth, but SCB recognizes that having a strong presence may be beyond it for now, so it is considering expanding via providing wholesale banking and transaction banking services, said Deputy Chairman and CEO Mr. Arthid Nanthawithaya.
In Vietnam, SCB has been operating through its joint venture, Vinasiam Bank (VSB), since 1995, where it holds a 33 per cent stake, the Charoen Pokphand Group 33 per cent, and Vietnam’s Agribank the remainder.
Once SCB obtains a license, VSB will be liquidated and all assets and liabilities, totaling around $100 million, will be transferred to the new branch in Ho Chi Minh City. The bank hopes the branch will be able to commence operations at the end of this year.
Under the license SCB can provide both credit and non-credit services, such as transactional banking, including foreign exchange, to wholesale clients.
SCB’s branch in Ho Chi Minh City will have registered capital of $75 million; much higher than the minimum of $15 million stipulated by the State Bank of Vietnam.