Banks initiate presence at financial hubs

Commercial banks are stepping up plans to establish a presence at the Vietnam International Financial Center, as the sector moves to access international capital flows and expand nontraditional revenue streams.

- By Khanh Linh

Seven banks have announced proposals to set up dedicated entities at the centre, following the formal launch of the international financial centre (IFC) model in Ho Chi Minh City and Danang.

Among the early movers, LPBank shareholders at their AGM on April 28 approved a plan to establish a wholly owned single-member limited liability bank to operate at the Vietnam International Financial Centre (VIFC). The bank said the move is intended to anticipate the formation of an international financial ecosystem and support diversification of revenue beyond traditional activities.

The new entity is expected to focus on international financial services, asset management, investment advisory, and digital asset management and investment, while also improving access to mediumand long-term funding from global partners at more competitive cost levels.

A similar direction is being pursued by Vietcombank. At its AGM on April 24, shareholders approved a plan to establish a wholly owned commercial bank at the VIFC.

Under the proposal, the new bank will be structured as a single-member limited liability company, fully owned by Vietcombank, with an operating term of up to 99 years, subject to regulatory approval. Its initial charter capital is projected at $120 million, positioning it as a small-sized institution in the domestic market and signalling a focus on specialised international financial activities from the outset.