The State Bank of Vietnam (SBV) has allowed the Vietnam Bank for Industry and Trade (VietinBank) to incorporate a subsidiary in Laos with total chartered capital of US$50 million.

A customer transacts at VietinBank’s branch in Laos.

According to SBV’s Document No. 216/NHNN-TTGSNH, VietinBank will have to inaugurate VietinBank Lao Limited within 24 months after the date of approval.

This incorporation is based on VietinBank’s current branch in the neighboring country. The branch has been faring well since its establishment in 2013.

The branch now provides money transfer, lending, loan guarantee and card services, among others. Its assets grew 43.29% last year compared to the year earlier and profit doubled.  

Le Duc Tho, general director of VietinBank, said in addition to supporting businesses, the branch has contributed much to enhancing economic cooperation between the two countries.

Establishing a subsidiary in Laos is part of VietinBank’s strategy to branch out to potential growth markets. The local bank has two branches in Germany as well.