Deputy chief inspector of the State Bank of Viet Nam Pham Huyen Anh on Tuesday granted business licence to the Singapore’s United Overseas Bank Limited (UOB).

Anh said that he expected the 100-per cent foreign owned bank in Viet Nam would contribute significantly to the growth of Viet Nam’s banking industry and economy as well as boosting the co-operation ties between Viet Nam and Singapore.

The UOB is one of Asia’s leading financial institutions with a network of 500 offices in 18 countries and territories. It already operates a branch in HCM City.

So far, ANZ, Hong Leong, HSBC, ShinHan, Standard Chartered, CIMB, Public Bank Berhad and Woori Bank have opened wholly foreign-owned banks in Viet Nam.

According to experts, more foreign banks are expected to enter Viet Nam’s market which has major potential with a population of roughly 93 million.

They recommended that Vietnamese banks must operate on a larger scale, with huge investments in technology and products through consolidations and mergers to create better and stronger banks that can compete with foreign banks.

By 2020, in accordance with the commitment to the World Trade Organisation, Viet Nam will have to completely open the doors of its banking sector. — VNS