STANDARD CHARTERED POISED TO EXPAND RAPIDLY IN VIETNAM
Gains Approval-In-Principle for Local Incorporation
Signs $800 million in Deals with Large Vietnamese Companies
5 March 2008, Hanoi – Standard Chartered Bank is poised to grow rapidly in Vietnam following confirmation it has received approval in principle to locally incorporate in the rapidly growing Southeast Asian economy.
Speaking before a meeting with Vietnamese Prime Minister Nguyen Tan Dung in London today, Ray Ferguson, Standard Chartered Bank’s Regional CEO Southeast Asia said: “We are delighted with this development and excited about what we can achieve for our customers in Vietnam. The decision will enable Standard Chartered to move ahead with planning to open as many as 20 to 30 new branches in Vietnam over the next three to four years.”
“Standard Chartered Bank considers Vietnam a key growth market in Asia and believes it will have an increasingly powerful economic role in the region. We are strongly committed to the development of banking industry in the country and to aggressively growing our presence,” he said.
The development was announced by Vietnam Prime Minister Nguyen Tan Dung during his visit to Britain yesterday. Standard Chartered has a history of more than 100 years in Vietnam, has actively participated in key infrastructure development projects and was among the first international banks to apply to the State Bank of Vietnam for approval to set up a 100 percent owned foreign subsidiary.
Standard Chartered has offices and branches in Hanoi and Ho Chi Minh City and is a strategic partner with Asia Commercial Bank, Vietnam’s largest privately owned bank, in which it has a nine percent minority shareholding.
Ashok Sud, Standard Chartered’s Vietnam CEO said: “The granting of a license to incorporate will be a springboard for the development of our Consumer and Wholesale Banking businesses in Vietnam, which have grown strongly over the past year”.
“Full approval would enable us to rapidly grow our distribution network across Vietnam and provide a new range of innovative consumer and SME banking products and services.
“It would also enable us to further enhance the support we provide to our corporate and financial institution clients. We will work closely with Vietnamese authorities to complete necessary requirement as soon as possible,” he said.
During his visit to Britain Prime Minister Dung is also scheduled to oversee the signing of business agreements between Standard Chartered Bank and two Vietnamese business partners.
These include a Memorandum of Understanding (MoU) valued at up to US$600 million with Vietnam Industrial Commercial Bank (Vietinbank) and a MoU worth up to US$200 million with Vietnam National Shipping Lines (Vinalines).
According to the MoU, Standard Chartered and VietinBank agree to explore cooperation in many areas such as settlement services, inter-bank lending, loan syndication, rating advisory, bond underwriting, and fund raising. Standard Chartered Bank will also provide advice on VietinBank’s oversea network expansion and the development of other financial banking services.
Under the terms of the MoU with Vinalines, Standard Chartered will support Vinalines in the design and implementation of capital market products and assist Vinalines in evaluating market risks and adopting hedging solutions. The Bank will also consider arranging a US$200 million loan syndication facility for Vinalines this year.
Standard Chartered has played a strong role in assisting Western multinationals and Asian companies to invest in Vietnam, help Vietnamese companies grow overseas and has acted as a bridge between Vietnamese and British businesses. In October 2006, the Bank was one of the main sponsors for the Vietnam Day in Britain.