Bank joins others in gaining SBV approval to convert Lao branches into fully-owned entity.
The State Bank of Vietnam has given written approval to the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) to establish a fully-owned entity in Laos by converting its existing branches in the country.
The new entity will be called the Vietnam Bank for Industry and Trade in Laos Ltd, be based in the Lao capital of Vientiane, and have charter capital of $50 million.
VietinBank must open the new entity within 24 months from the date of approval.
Last year SHB and Sacombank also received in-principle approval to establish fully-owned entities in Laos, by also converting their existing branches.
Vietnam’s other near neighbor, Cambodia, has also attracted the attention of these two banks. Sacombank has been operating in the country via a 100 per cent owned subsidiary since 2011, and in November last year SHB won official approval from the State Bank for a similar move.