HSBC, the first 100% foreign invested bank in Binh Duong.

Binh Duong province’s socio-economy is in the period of strong development, surging demand on credit and financial service. To keep pace with economic growth pace and demand of local residents, the locality has been a highlighted destination luring attention of banking and financial organizations.

Expansion of network

2008 was the year of global economic crisis, impacting on the country and province’s economy. However, the locality was still valued highly by financial experts. Right in the last months of 2008, credit organizations set up new branches and transactional offices to surge their presence in the market. Network of credit organizations since 2008 has been in lively situation, constantly increasing in quantity. And, this tend has been spread across districts and townships of the province.

According to statistics of the State Bank of Vietnam, the entire province has so far had 40 credit organizations, 10 people’s credit funds and 74 transactional offices. At present, big names of local and foreign credit and financial field have been appeared in the locality.

As a new bank in the province, HSBC Vietnam’s Binh Duong branch is the first foreign bank in the locality. The branch director Tran Khiet Thi Mandy, said after surveys across localities, HSBC realized the province’s potentials. Gathering of local and foreign investors and development of industrial parks are reasons of presence of the bank in the locality. HSBC hopes to offer services and solutions on finance for local businesses. The bank will develop more transactional offices at some districts and townships of the province.

Aside from HSBC Vietnam, there are many applications for establishing new banks and expanding more transactional offices at the province. They include Phuong Nam Bank, VP Bank, GPBank, ShinHan Bank. Possibly speaking, growth and stability of Binh Duong economy have strongly lured investors. A series of banks has reinforced to expand their market share and network in a bid to satisfy the rising demand.

Safe and effective operation

The State Bank of Vietnam’s Binh Duong branch has always focused on building action plans to launch the Party and State’s instructions and policies timely. As a result, the entire banking sector in the locality has met credit capital source for businesses and residents timely.

Assessing results of banking system, especially system of Agribank’s Binh Duong branch, vice chairman of the provincial People’s Committee Le Thanh Cung said that Agribank-Binh Duong branch is the province’s big state commercial bank having transactional offices across province. The branch has reached high results, meeting clients’ demand and contributing to the local socio-economic development. By such efforts of the banking sector plus right management of functional agencies, operation of the local banking sector has over years reached high results. BIDV’s Binh Duong branch director Nguyen Thi Dung, said in the first six months of 2010, BIDV’s Binh Duong branch gained over VND3tril in outstanding total loans and over VND3,7tril in mobilized capital. The branch has presently set up relations with more than 1,416 business clients and over 55,000 individual ones.

With vision in conformity with development trend, banks have always approached feasible projects and clients as well as give priorities to businesses under effective production. Thanks to the positive moves, rate of irrecoverable debts of the sector is very low. The State Bank of Vietnam’s Binh Duong branch vice director Nguyen Phu Cuong, said the banking sector’s business efficiency has over years reached a high growth. System of banking and credit branches is under safe and developing operation. In the first 8 months of 2010, the total mobilized capital of the province gained VND34,960bil, up 12.8% from the same period last year whilst the total outstanding loan amounted to VND38,682bil, a 32.4% rise from 2008.

Reported by T.Hong – Translated  by A.C