Jun 21, 2019 / 16:31

Vietnam halts licensing new foreign banks throughout 2020

The Hanoitimes - South Korean banks could consider acquiring weak banks undergoing restructuring, such as OceanBank, GPBank and CBank, or local financial companies as Vietnam’s market is booming.

The Vietnamese government would halt licensing new foreign banks until late 2020 in a bid to focus on restructuring the banking sector, according to Deputy Prime Minister Vuong Dinh Hue. 

Hue made the statement in meetings with executives of South Korean banks and corporations in Seoul on June 20, the government portal reported. 
 
Deputy Prime Minister Vuong Dinh Hue and President of KDB Bank. Source: VGP.
Deputy Prime Minister Vuong Dinh Hue (r) and President of KDB Bank (l). Source: VGP.
Hue added South Korean banks could consider acquiring weak banks that are undergoing restructuring such as OceanBank, GPBank and CBank, or local financial companies as Vietnam’s market is booming. 

Representatives of financial groups Shinhan and Alliex expressed interest in Vietnam’s intermediary payment market, non-cash payment and peer-to-peer lending (P2P), considering this as an important solution for Vietnam’s further development. 

Regarding this issue, Deputy PM Hue said the government has been encouraging new payment methods in Vietnam, aiming to reduce the dependence on cash. 

Additionally, Vietnam has selected June 16 as a day for non-cash payment and government agencies are drafting new legal framework allowing mobile accounts to make transaction without having to connect to a bank account, Hue continued. 
 
Deputy PM Hue and Vice President of Hyundai. Source: VGP.
Deputy PM Hue and Vice President of Hyundai. Source: VGP.
Executives at KDB and IBK banks informed their plans to set up branches providing financial and banking services in Vietnam. 

In a meeting with Vice President of Hyundai Jin Hyng Chung, Hue said the Eastern North – South expressway project and later the North - South railway project are open to international competitive bidding, urging Hyundai to soon prepare bidding documents for these projects.