New foreign owned bank to enter Vietnam market

By Dam Tuan March 28, 2016 | 05:41 am PT

The State Bank of Vietnam (SBV) on March 24 approved the establishment of Public Bank Vietnam Limited with a chartered capital of VND3 trillion ($134 million).

A subsidiary of Public Bank Perhad (PBB) of Malaysia, the new bank has been granted a 99 year operating license.

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Public Bank Perhad in Malaysia. Photo: thestar

The other wholly foreign owned banks in Vietnam are HSBC, ANZ, Standard Chartered, Shinhan Vietnam and Hong Leong Bank.

Public Bank Vietnam’s headquarter is in the Prime Centre Building on Quang Trung street, Hanoi. The new foreign bank is licensed as a commercial bank operation under Vietnam’s laws on credit institutions and other SBV regulations.

On the same day, the SBV withdrew the operating license of the joint venture bank VID Public Bank, which was originally issued on March 25, 1992.

VID Public Bank is now responsible for transferring all of its assets to Public Bank Vietnam Limited as of April 1, 2016. VID must also begin implementing closure procedures such as returning its operating license and business registration certificate.

VID Public Bank was established on September 30, 1991 and a joint venture between the Bank for Investment and Development of Vietnam (BIDV) and Public Bank Berhad (Malaysia).