SBV agrees to Public Bank Berhad transforming VID into a fully foreign-owned entity.
On March 23, the State Bank of Vietnam (SBV) issued Document No. 1721/NHNN-TTGSNH, allowing Public Bank Berhad (PBB) from Malaysia to open a fully foreign owned bank in Vietnam, by transforming VID Public Bank, a joint venture between itself and the Bank for Investment and Development of Vietnam (BIDV).
VID Public Bank and PBB must meet all the conditions and documents required by law to be converted into 100 per cent foreign owned bank. If PBB does not meet the conditions, the central bank will withdraw the license for VID Public Bank.
VID Public Bank was one of the first joint venture banks in Vietnam, founded in 1991, with an equity ratio of 50:50 between BIDV and PBB. It officially began operations in May 1992. In 2014 BIDV signed an agreement to transfer all of its equity in the joint venture to PBB, after 22 years of cooperation.
"The joint venture has been profitable for the past 22 years and has obtained sufficient capital contributions," said Mr. Tran Bac Ha, Chairman of BIDV. "We will both profit from the transfer."
The funds received will be used to increase the financial capacity of BIDV, he said.
- VID Public Bank