Foreign banks are racing to expand retail services by launching more services and subsidiaries as Vietnam approaches the time for opening the door to all banking services.
In line with the country’s WTO commitments, foreign banks operating in Vietnam will be allowed to provide banking services and products on par with local banks from January 1, 2011.
Hong Kong Shanghai Banking Corp (HSBC) inaugurated its fifth subsidiary in Vietnam in late September, while Citibank and Standard Chartered Bank launched their retail banking services in Hanoi in mid-October.
Foreign banks also launched new products and services, with the aim of narrowing market share gaps with local banks that currently account for 90 percent of retail market share.
US giant, Citibank introduced smart banking services aiming at young, high- tech customers and is aiming to provide internet and mobile phone retail banking services.
Standard Chartered Bank, along with seven-day services, plans to link to the local Smartlink’s ATM card alliance system from next January, becoming the first foreign bank in Vietnam to make this connection.
Ashok Sud, Standard Chartered Bank Vietnam General Director, expressed his pleasure with establishing a “fair” market for both local and foreign banks. All products and services his bank wants to provide have received permission, he said.
Although possessing only a moderate retail market share, foreign banks treasure the most wealthy client group, including individuals with monthly income of 10 million VND (about 500 USD) or above.
According to Standard Chartered Bank, Vietnam ’s per capita income is estimated to be 2,000 USD a year by 2015, resulting in an increase in the use of banking services.
But there is a concern among financial experts that in the near future, local bank services such as international payments, trade assistance and project investment could be taken over by foreign banks because of their superior capacity in technology and management as well as financial strength.
Therefore, apart from strengthening and improving management and business capacity, local banks have invested in improved technology, expanding services to the private business and foreign-invested business groups along with state-owned firms./.
In line with the country’s WTO commitments, foreign banks operating in Vietnam will be allowed to provide banking services and products on par with local banks from January 1, 2011.
Hong Kong Shanghai Banking Corp (HSBC) inaugurated its fifth subsidiary in Vietnam in late September, while Citibank and Standard Chartered Bank launched their retail banking services in Hanoi in mid-October.
Foreign banks also launched new products and services, with the aim of narrowing market share gaps with local banks that currently account for 90 percent of retail market share.
US giant, Citibank introduced smart banking services aiming at young, high- tech customers and is aiming to provide internet and mobile phone retail banking services.
Standard Chartered Bank, along with seven-day services, plans to link to the local Smartlink’s ATM card alliance system from next January, becoming the first foreign bank in Vietnam to make this connection.
Ashok Sud, Standard Chartered Bank Vietnam General Director, expressed his pleasure with establishing a “fair” market for both local and foreign banks. All products and services his bank wants to provide have received permission, he said.
Although possessing only a moderate retail market share, foreign banks treasure the most wealthy client group, including individuals with monthly income of 10 million VND (about 500 USD) or above.
According to Standard Chartered Bank, Vietnam ’s per capita income is estimated to be 2,000 USD a year by 2015, resulting in an increase in the use of banking services.
But there is a concern among financial experts that in the near future, local bank services such as international payments, trade assistance and project investment could be taken over by foreign banks because of their superior capacity in technology and management as well as financial strength.
Therefore, apart from strengthening and improving management and business capacity, local banks have invested in improved technology, expanding services to the private business and foreign-invested business groups along with state-owned firms./.
