Singaporean bank gets go-ahead to open up in Vietnam

The State Bank of Vietnam has granted a license for Singapore’s United Overseas Bank Ltd (UOB) to open a fully-fledged foreign-owned bank in Vietnam, according to a statement released on Thursday.

UOB is one of Asia's leading financial institutions with a network of 500 offices spanning 18 countries and territories, including one in Ho Chi Minh City.

The bank is considering opening a branch in Hanoi to gain access to fast-developing areas in the north such as Hai Phong, Quang Ninh and Hai Duong.

Since 2013, UOB has channeled more than $3 billion in foreign direct investment from Asia into Vietnam.

UOB will be the ninth wholly foreign-owned bank operating in Vietnam, after ANZ, Hong Leong, HSBC, ShinHan, Standard Chartered, CIMB, Public Bank Berhad and Woori Bank.

Singapore is a major business partner, but does not yet have a fully-owned bank in Vietnam, while other countries, even with smaller investments, have already established banks, according to the Ministry of Planning and Investment.

By 2020, Vietnam will have to open up its banking sector under commitments made to the World Trade Organization,.

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