Lao-Viet Bank to spur capital by US$32 million

Read the original news 

SaigonTimes English - 28 month(s) ago 20 readings

Lao-Viet Bank to spur capital by US$32 million

HCMC – The Vientiane-based Lao-Viet Joint Venture Bank (LVB) will raise its chartered capital from US$37.5 million to US$70 million this June and become the second largest bank in terms of capital in Laos.

Lao-Viet Bank to spur capital by US$32 million

By Hong Phuc - The Saigon Times Daily

Customers transact at Lao-Viet Bank’s branch in Vientiane - Photo: Hong Phuc
HCMC – The Vientiane-based Lao-Viet Joint Venture Bank (LVB) will raise its chartered capital from US$37.5 million to US$70 million this June and become the second largest bank in terms of capital in Laos.

Bank for Investment and Development of Vietnam (BIDV) and the Foreign Trade Bank of Laos (BCEL), the two partners in the joint venture, reached this decision at a meeting on Tuesday in Quy Nhon City, Binh Dinh Province.

In its press release, BIDV said LVB will use the additional capital to expand its business in Laos.

The bank plans to expand its network to the key economic areas in Laos, improve the CoreBanking system and finance the Vietnam-invested projects in Laos and efficient Lao enterprises.

LVB’s chartered capital was originally US$10 million, which was later increased to US$15 million in 2005. In February this year, the bank continued to spur its capital to US$37.5 million.

At the same time, the ownership structure of the two parent banks was changed from the initial 50-50 to 65-35, in which BIDV holds a 65% stake. In addition, LVB officially became an affiliate of BIDV abroad.

The 65-35 ownership structure will remain the same when the chartered capital is almost doubled to US$70 million this time, with BIDV holding US$45.5 million.

LVB is currently among the top three banks in Laos in terms of assets, deposits and outstanding loans. The bank has continuously made profits since being established.

The growths in total assets, mobilized capital and credit of the bank have always been over 30% since 2008 to date.

At present, Vietnamese enterprises have high demand to invest in Laos. As of the end of the first quarter, there had been 213 Vietnamese projects in Laos worth a total of US$3.46 billion, making Vietnam the second biggest foreign investor in the neighboring country.

Many large-scale projects will be carried out soon, such as the projects of Hoang Anh Gia Lai Group (US$410 million), Vietnam National Chemical Group (US$450 million), Hoa Phat Group (US$150 million), BIM Group (US$70 million) and An Phu (US$45 million).

There is no comment

Please Sign up or Login to comment.

Top page