In mid-May, the State Bank Governor had a written approval of the capital increase of NongHyup Bank Hanoi branch and Bank of China (Hongkong) Limited HCM City branch.
Accordingly, the State Bank Governor approved the proposal to change the capital granted to NongHyup-Hanoi branch by 2.28 times, from $35 million to $80 million. BOC HCM has also raised the capital from $80 million to $100 million.
The chartered capital of these two foreign bank branches are 1.824 trillion dong and 2.280 trillion dong respectively (following the exchange rate of 22,000 dong per US dollar). Earlier, in March, Siam HCM City also increased capital to $100.47 million from the previous capital of more than 1.580 trillion dong.
As of December 31, 2017, there were a total of 49 foreign bank branches operating in Vietnam. SMBC had the largest chartered capital (11.2 trillion dong) with two branches. Some other banks also opened two branches in Hanoi and HCM City with the total chartered capital of more than five trillion dong such as Bangkok, BMTU, Industrial Bank of Korea, Mizuho.
Not only supplementing capital, some foreign banks that open representative offices in Vietnam has also expanded operating duration. DBS Bank in Hanoi and JCB International (Thailand) Company Limited in Hanoi have asked to expand by five years in March and April.
In the meeting with representatives of the State Bank, some banks also expressed their expectations that the State Bank as well as relevant authorities of Vietnam will support their opening of representative offices such as Exim Thailand in the middle of May. The numbers of foreign banks that open representative offices in Vietnam have currently reached nearly 50.
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