BIDV granted licence to open branch in Myanmar

BIDV Yangon began operating officially on July 1, nearly four months after the preliminary approval was announced on March 4.

The bank said the Yangon branch’s initial capital was US$85 million.

BIDV established its representative office in Myanmar in April 2010 as part of efforts to realise the Vietnam-Myanmar Joint Statement on co-operation in 12 prioritised areas, including finance and banking.

Since then BIDV has been expanding its operations in Myanmar through its role in the Association of Vietnamese Investors in Myanmar, the opening of a branch of BIDV Insurance and BIDV Myanmar Finance Company.

Over the past six years, BIDV has played a significant role in boosting Vietnam-Myanmar co-operation in investment, trade and tourism, helping make Vietnam one of the largest foreign investors in Myanmar.

Vietnam’s direct foreign investment in Myanmar rose from US$23.65 million in 2010 to US$691.6 million at the end of 2015.

Trade between the two countries also saw strong growth, averaging 25% a year during the 2010-2015 period. Last year, two-way trade reached US$435 million, nearly triple the figure in 2010.

Tourism also witnessed fast growth with the number of tourists between the two countries rising at an average annual rate of 15%.

The opening of BIDV Yangon marks the lender’s broader participation in Myanmar’s financial and banking system and comes in line with its strategy of market diversification and promoting growth in key regional markets.