Foreign bank branches have been outperforming local banks in industrial parks (IPs) and export processing zones (EPZs) in HCM City, says a report by the central bank’s city branch.
More than 27 Vietnamese and 13 foreign banking institutions provide services for tenants and infrastructure developers in the city’s three EPZs and 11 IPs but more than half of the loans provided come from foreign players.
Demand for loans in the IPs and EPZs grows more than 70% a year.
Tran Ngoc Minh, director of the central bank’s city branch, said, “Local banks are losing on the home market.”
A reason is that foreign companies in these zones prefer borrowing from foreign banks, Minh said. “For example, Taiwanese firms often take out loans from a Taiwanese bank branch since it is time-consuming to borrow from domestic banks.”