Standard Chartered has become the second foreign bank to establish a wholly-owned subsidiary in Viet Nam supplying all banking services in line with the country’s commitments to the World Trade Organization.
HSBC, also based in London like the Standard Chartered Bank, is the first foreign bank to do this. Vietnamese Prime Minister Nguyen Tan Dung presented a license to the President of HSBC in London on March 4 during his official visit to the U.K. The next day, the PM confirmed the nod for Standard Chartered. He informed his British counterpart Gordon Brown of the Vietnamese Government’s decision to grant licenses to HSBC and Standard Chartered.
During the Vietnamese PM’s visit to Britain, Standard Chartered signed major business agreements with two Vietnamese State-run corporations under the witness of the Vietnamese leader. They are a memorandum of understanding worth US$600 million with the Industrial and Commercial Bank of Viet Nam, and another with the Viet Nam National Shipping Lines, aka Vinalines.
In Viet Nam, Standard Chartered has offices and branches in HCMC and Ha Noi, and is a strategic partner with the HCMC-based Asia Commercial Bank, one of the largest private banks in the country.