Foreign banks have done well in their role as a bridge between investors abroad and domestic enterprises while ensuring security ratios and effective performance, State Bank governor Nguyen Van Giau stated in a year end meeting with foreign bankers in Vietnam on December 15.

Given the domestic and international challenges the economy faced, many of the foreign banks saw rather good business results. Latest reports show that foreign banks and wholly foreign-invested banks in Vietnam are projected to take some 2.61 trillion VND (137.47 million USD) in pre-tax profit.

Savings and deposits rates increased by 17.8 percent and the outstanding loan rate moved up by 10.8 percent, total equity increased by 14 percent against the end of last year.

The performance of joint venture banks also saw stability with total pre-tax income of 477 billion VND (25.11 million USD), savings and deposits rates up 18.2 percent and outstanding loans up 34.3 percent, with equity up 18.3 percent.

By the end of October, non-banking institutions had gained 17.5 percent in capital mobilisation, 41.8 percent in outstanding loans and 40.5 percent in equity.

In 2008, total capital mobilisation of foreign credit institutions was up over 45 percent over 2007.

At the meeting, Giau also recognised that international financial organisations had played an important role in helping the domestic economy recover from economic recession. Besides, policy consulting and labour training, foreign banks had pledged a large amount of credit to Vietnam .

So far this year, the International Monetary Fund has distributed over 267 million USD of SDR (Special Drawing Rights), while the World Bank also added more than 250 million USD to projects supporting the State budget. Vietnam also received priority from the International Bank for Reconstruction and Development and International Development Association.

The Asian Development Bank lent 1.9 billion USD for 10 projects and added more capital for social projects.

Currently, Vietnam hosts 45 branches of 33 foreign banks, 20 branches of five joint venture banks, five wholly foreign invested banks, eight foreign invested non-banking credit institutions, and 56 representative offices of foreign banks./.