Foreign financial investors can own up to 30% of capital in a Vietnamese commercial bank while the ownership for strategic partners is 20%, according to Ngo Chung Khanh, deputy head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade.
Foreign financial institutions can also mull over setting up independent operations such as joint venture financial companies, wholly foreign-owned leasing firms and wholly foreign-owned banks, he added.
Regarding money transfers and the protection of payment balance, Vu Minh Chau from the State Bank of Vietnam’s International Cooperation Department said that TPP member states have pledged free and prompt payments of relevant capital without restriction of currency types.
She highlighted that Vietnam commits to opening the door for international card payment and allowing foreign suppliers to provide trans-boundary money clearing services.
Meanwhile, Tran Thi Hong Hanh, General Secretary of the Vietnam Banks’ Association believes that the TPP will create momentum for Vietnam’s trade growth while offering chances for Vietnamese commercial banks to provide capital and services for export enterprises in the future.
Thanks to the TPP, Vietnam will be able to access foreign trust funds at low costs, which will drive additional foreign capital to land in the country, Hanh said, adding that foreign investors’ participation in the Vietnamese financial market will boost cooperation and enhance financial management capacity for domestic banks.