The Australia and New Zealand Banking Group (ANZ) will tip a further 64.6 million AUD into its Vietnam bank to expand its capital base, according to a local newspaper.

The Sydney Morning HeraldIt on Sept. 21 said that ANZ will raise its equity in the Vietnamese business to nearly 130 million AUD to help it write new loans and protect against loans that may turn sour.

The paper quoted a statement by the State Bank of Vietnam as saying that “commercial banks, especially foreign ones, operating in Vietnam continue to raise their registered capital despite the global financial crisis and economic slowdown. It means that Vietnam is a safe destination for foreign investors."

ANZ obtained the licence to open a wholly-owned bank in Vietnam last October. The banking group has branches in Hanoi and Ho Chi Minh City and an ATM network nationwide.

Vietnam now has more than 30 banks, and ANZ ranks as one of the top four offshore banks there. Earlier this year ANZ outlined plans to open six new transaction offices across the country, the paper said.

It added that Vietnam, Malaysia and Indonesia are countries where ANZ chief executive Mike Smith believes the bank can develop top-tier domestic banks and match its presence as a big four player in Australia.

ANZ, which is on its path to building a pan-Asian bank, is targeting a doubling of earnings from its Asian operations to 20 percent over the next few years./.