In-house wary over banks’ Vietnam investment

Author: | Published: 27 Jul 2011

Bankers’ counsel believe that foreign participants in Vietnam’s banking sector should prepare for limited return in a risky market.

The Commonwealth Bank of Australia and Singapore’s United Overseas Banks this month won State Bank of Vietnam approval to raise their holdings, in Vietnam International Commercial Joint-Stock Bank and Southern Commercial Joint-Stock Bank respectively, to a 20% limit.

Japan’s Mizuho Financial is expected to buy a $760m stake in Vietnam’s largest publicly-traded bank, Vietcombank. This follows a May announcement by the state-owned bank that it was reviving plans to sell as much as a 20% stake to overseas investors by early next year. Mizuho’s investment would be the biggest ever purchase of a stake in a...