Many Vietnamese banks are expanding their business activities into foreign markets with the neighbouring countries of Laos and Cambodia as prime destinations.
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| MB branch in Laos |
The Bank for Investment and Development of Vietnam (BIDV) opened a new branch in Siem Reap, Cambodia, after the first was launched in Phnom Penh in late July 2009.
Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank) plans to turn its branches in Laos and Cambodia into local banks using its own investment.
Most recently, on October 14, the Military Bank (MB) received an investment license to open a branch in Laos with an initial capital of USD12 million. MB General Director, Cao Thi Thuy Nga, said her bank plans to enter Cambodia, aiming at Vietnamese businesses which are now investing in various areas of the Cambodian market, including telecom, petroleum and coal.
She expected that the MB branch in Laos will become a strong commercial bank in the future, noting that Vietnamese banks should prepare a comprehensive businesses strategy to face fierce competition in the two neighboring markets.
Two banks, one of Malaysia and the other of Australia, now account for a big market share in Cambodia. Meanwhile, Lao Bank for Foreign Trade still holds a large market share in Laos. A number of foreign banks from China and South Korea are also eyeing these markets.