Deputy Chairman of the National Financial Supervisory Committee Le XuanNghia has affirmed that there will be no mass sale of banking shares toforeign investors.
Nghia made the affirmation following the PrimeMinister’s request to the State Bank to consider allowing commercialbanks to sell up to 20 percent of their charter capital to foreignstrategic investors.
The move shows that the Government has givena green light to increase foreign ownership at commercial banks fromthe current rate of 15 percent and investors expect that will create apositive change in the gloomy banking stock market.
Thecooperation between foreign investors and Vietnam’s banks has opened newdevelopments. Foreign partners have helped the banks build competitivefinancial services and products, and increase human resources andtechnology capacity. In return, foreign partners have earned profits andgained a large market share from investing in the banks.
Theequitisation of Vietinbank has been successful thanks to selling aportion of its shares to the International Finance Corporation (IFC) andthe Nova Scotia Bank of Canada in 2010.
The VietnamInternational Bank (VIB) plans to raise the ownership of theCommonwealth of Australia at the bank from a current rate of 15 percentto 20 percent by the end of the year.
Mekong Housing Bank said ithas reached a deal to sell 20 percent of its stake to its foreignstrategic partner, to triple its charter capital to 3 trillion VND.
Sincea number of banks operate without a long-term development strategy onlywant their foreign strategic partners to contribute capital and notbecome involved in their operation, Nghia said this has resulted incapital withdrawal of foreign banking and financial organisations fromthe banking sector.
Effective cooperation with foreign partners depends much on the behaviour and capability of domestic banks, he noted.
However,the development of Vietnam’s banking sector, particularly after theglobal economic crisis, is highly appreciated by foreign investors.
TheVinaCapital Fund report on foreign partners’ investment in 2010 saidthat finance-banking remains a sector that received special attention inthe country despite regulations to restrict foreign investment in thefield./.
Nghia made the affirmation following the PrimeMinister’s request to the State Bank to consider allowing commercialbanks to sell up to 20 percent of their charter capital to foreignstrategic investors.
The move shows that the Government has givena green light to increase foreign ownership at commercial banks fromthe current rate of 15 percent and investors expect that will create apositive change in the gloomy banking stock market.
Thecooperation between foreign investors and Vietnam’s banks has opened newdevelopments. Foreign partners have helped the banks build competitivefinancial services and products, and increase human resources andtechnology capacity. In return, foreign partners have earned profits andgained a large market share from investing in the banks.
Theequitisation of Vietinbank has been successful thanks to selling aportion of its shares to the International Finance Corporation (IFC) andthe Nova Scotia Bank of Canada in 2010.
The VietnamInternational Bank (VIB) plans to raise the ownership of theCommonwealth of Australia at the bank from a current rate of 15 percentto 20 percent by the end of the year.
Mekong Housing Bank said ithas reached a deal to sell 20 percent of its stake to its foreignstrategic partner, to triple its charter capital to 3 trillion VND.
Sincea number of banks operate without a long-term development strategy onlywant their foreign strategic partners to contribute capital and notbecome involved in their operation, Nghia said this has resulted incapital withdrawal of foreign banking and financial organisations fromthe banking sector.
Effective cooperation with foreign partners depends much on the behaviour and capability of domestic banks, he noted.
However,the development of Vietnam’s banking sector, particularly after theglobal economic crisis, is highly appreciated by foreign investors.
TheVinaCapital Fund report on foreign partners’ investment in 2010 saidthat finance-banking remains a sector that received special attention inthe country despite regulations to restrict foreign investment in thefield./.
