SHB plans to set up subsidiary in Laos

16-Aug-2012 Intellasia | VnEconomy | 1:48 PM Print This Post

On August 15, 2012, Saigon – Hanoi Commercial Joint Stock Bank (SHB) inaugurated its first branch in Pakse, Cahmpasak province, Laos.

With an initial chartered capital of $13 million, SHB’s branch in Champasak will provide full operations of a commercial banks bank such as capital mobilisation, lending, trade finance, factoring, forex trading and gold trading, money transfer and collection and ATM services.

Nguyen Van Le, SHB’s general director said that when the branch operates stably in about 1 year, SHB will ask Vietnam and Laos government to offer certificate to form a subsidiary with 100 percent of SHB’s capital in Vientiane.

At the beginning of 2012, SHB inaugurated the first branch abroad in Phnom Penh, Cambodia.

Champasak is the biggest province in the South of Laos (based on area) which have a strategic location on economy with traffic hubs from Thailand, Cambodia and near Vietnam. In recent years, Champasak has attracted many foreign investors, especially Vietnamese who are taking the lead with 37 projects and $217.7 million of total capital, accounting for 51 percent of total overseas capital.

By June 2012, Vietnamese enterprises have invested in 435 projects with total capital of $5.2 billion in Laos. In 2015, it is expected to reach $7 billion. The expected bilateral trading revenue may be $1 billion. Vietnam stands on the second place in total countries investing into Laos. Particularly in 4 South Laos provinces, Vietnam is leading with 108 projects and $1.8 billion of capital.

SHB is the fifth bank officially doing businesses in Laos along with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Industry and Trade (Vietinbank), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Military Commercial Joint Stock Bank (MB).

At the inaugurating ceremony, SHB has signed strategic cooperating agreement with the Vietnam Rubber Group (VRG) about investing operation in Laos; signed financing contract for $30  million electrical substation construction in the Xambone commune (Sathay, Vientiane) and SHB has become sponsor of Champasak’s football club named SHB Champasak.

Coming into operation, SHB’s branch in Laos is now carrying out promoting programme for Laos people, overseas Vietnamese customers, Vietnamese and Laos corporate customers.

For individual customers, SHB will reduce 1 percent of interest rate for consuming loans in the first 3 months and 30 percent of money transferring charge when customers introduce other people to use this service.

For corporate customers, they will receive a 1-percent decrease in the lending interest rate in 3 months, 15 percent fall in international payment charge in 3 months. Money transferring charge from Laos to Vietnam will decrease 30 percent. They provide a free charge ATM for corporate registering salary payment through SHB’s accounts.


Category: Finance

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