BIDV becomes first bank in ASEAN to open branch in Myanmar

By An Hong   July 2, 2016 | 08:10 am GMT+7

BIDV, Vietnam's biggest partly private lender by assets, said on Friday it has officially received a license to open a branch in Myanmar.

The BIDV branch, with capital of $85 million, is expected to generate assets worth $300 million in three years.

“BIDV is the first bank in ASEAN to successfully secure banking license in Myanmar,” said the bank’s chairman, Tran Bac Ha.

BIDV has been looking to secure a license since 2010. It failed to obtain a first license when it applied to Myanmar’s central bank last year.

The Myanmar government has allowed nine foreign lenders to set up and offer limited banking services in the country, such as providing loans in foreign currency to foreign companies in Myanmar.

Those banks include ANZ Banking Group, Bangkok Bank , Malayan Banking Bhd (Maybank), Mizuho Bank, United Overseas Bank, Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corp (SMBC) and Oversea-Chinese Banking Corp Ltd.

bidv-becomes-first-bank-in-asean-to-open-branch-in-myanmar

Vietnam's BIDV is the first bank in ASEAN to open a branch in Myanmar. Photo by BIDV.

Vietnamese companies have significantly increased their investments in Myanmar over the past five years, to $691.6 million last year from $23.65 million in 2010.

Vietnam-Myanmar trade has grown at an annual average rate of 25 percent from 2010 to 2015, reaching $435 million last year.

BIDV's branch in Myanmar officially came into operation yesterday.