Commercial banks are beginning to enter into tie-ups with each other to achieve operating scale even as they await the entry of foreign banks, a process that will alter the banking landscape.
Under Vietnam’s World Trade Organisation commitments, in 2011 foreign and domestic banks will be governed by basically the same conditions except for capital and other requirements for a foreign bank seeking to set up shop in Vietnam.
This has sent Vietnamese banks scrambling to bolster their competitiveness by becoming more professional and modern so that they can compete with their foreign rivals who will come with deep pockets and enormous expertise.
The State-owned Vietnam Joint Stock Bank for Industry and Trade (Vietinbank) and the Housing Development Joint Stock Bank (HDBank) typify the trend.
The two have signed a comprehensive agreement to jointly undertake banking activities.
They will jointly finance business projects and also give each other priority when looking for banking products and services.
The Bank for Investment and Development of Vietnam (BIDV) and Ocean Joint Stock Bank (OceanBank) have also signed a similar agreement under which State-owned giant BIDV will help OceanBank to develop its banking and financial services and provide in easy access to credit.
BIDV will also fund OceanBank’s clients projects, either directly or through the latter.
Analysts said banks are also stepping up cooperation with partners in other sectors.
Maritime Bank has just signed a strategic agreement with IBM Vietnam while HDBank has tied up with Wonderbuy, a major supplier of computers, and more than 60 of its partners.
Duong Thu Huong, general secretary of the Vietnam Banking Association, hailed banks’ collaboration with partners within and outside the financial sector, describing it as the right way to develop the banking industry./.
Under Vietnam’s World Trade Organisation commitments, in 2011 foreign and domestic banks will be governed by basically the same conditions except for capital and other requirements for a foreign bank seeking to set up shop in Vietnam.
This has sent Vietnamese banks scrambling to bolster their competitiveness by becoming more professional and modern so that they can compete with their foreign rivals who will come with deep pockets and enormous expertise.
The State-owned Vietnam Joint Stock Bank for Industry and Trade (Vietinbank) and the Housing Development Joint Stock Bank (HDBank) typify the trend.
The two have signed a comprehensive agreement to jointly undertake banking activities.
They will jointly finance business projects and also give each other priority when looking for banking products and services.
The Bank for Investment and Development of Vietnam (BIDV) and Ocean Joint Stock Bank (OceanBank) have also signed a similar agreement under which State-owned giant BIDV will help OceanBank to develop its banking and financial services and provide in easy access to credit.
BIDV will also fund OceanBank’s clients projects, either directly or through the latter.
Analysts said banks are also stepping up cooperation with partners in other sectors.
Maritime Bank has just signed a strategic agreement with IBM Vietnam while HDBank has tied up with Wonderbuy, a major supplier of computers, and more than 60 of its partners.
Duong Thu Huong, general secretary of the Vietnam Banking Association, hailed banks’ collaboration with partners within and outside the financial sector, describing it as the right way to develop the banking industry./.
