The Central Bank of Myanmar (CBM) presented BIDV with a license for banking operation in Myanmar on 30 June 2016. The license granting ceremony follows the preliminary approval for commencement of banking operations announced on 4 March this year. This is the shortest time for preparation and commencement of operation amongst 13 foreign banks licensed for operation in the two rounds of 2014 and 2016.

 

​BIDV established its representative office in Myanmar in April 2010, in response to the Joint Declaration between Vietnam and Myanmar relating to 12 priority areas of economic cooperation, including finance and banking, as well as implementing the Vietnamese Prime Minister’s directions. As chair of the Association of Vietnamese Investors in Myanmar (AVIM), BIDV has instigated positive developments in the country, including the opening of the representative office of BIDV Insurance Corporation (BIC) and establishment of BIDV Myanmar Finance Company Ltd.

Over the past six years, AVIM and BIDV have significantly contributed to promoting cooperation between Vietnam and Myanmar in three areas: investment, trade and tourism. This has resulted in a wave of investment from Vietnamese enterprises into Myanmar, making Vietnam one of the largest foreign investors in the country.

In 2010 there were only two investment projects, with a total FDI capital of USD23.65 million. As of 2015, 73 Vietnamese businesses were present in Myanmar and ten investment projects were licensed with total FDI capital of USD691.6 million. Vietnam ranked tenth among foreign investors in Myanmar, five times higher than the number of projects and 30 times higher than the total investment of 2010.

During the period 2010-2015, bilateral trade between the two countries saw an annual average growth of 25 percent. In 2015 total import-export turnover of the two countries reached USD435 million, three times higher than 2010 (USD152.3 million).

Tourism also saw strong growth with the number of tourists between Vietnam and Myanmar increasing by 15 percent annually since 2010.

AVIM and BIDV arranged more than 200 Vietnamese business missions with over 5,000 business people to conduct investment surveys in Myanmar; and collaborated with ministries and agencies of both countries to organise economic cooperation events including three Vietnam – Myanmar investment conferences; business forums, 11 workshops, and several forums on promoting trade, investment and tourism.

From 30 July to 1 August, BIDV acted as initiator and co-sponsor to coordinate with the governments and relevant ministries of Cambodia, Laos, Myanmar and Vietnam (CLMV) to organise the ‘Four Countries - One Destination’ Forum on connecting tourism and expanding cooperation in the banking sector.

The opening of BIDV’s Branch in Myanmar marks the bank’s official participation in Myanmar’s banking and financial system in line with the bank’s strategy of diversifying markets and promoting development in key areas in the region. The branch is expected to contribute to connecting Myanmar with the international market and further promote economic cooperation, trade and investment between the two countries. The branch began operating on 1 July 2016 with the official opening ceremony being held on 31 July in the framework of the aforementioned forum.

The branch will initially focus on providing modern banking products and services to foreign enterprises in Myanmar, banks operating inside and outside Myanmar, as well as local businesses, on the basis of cooperation with local banks in the country. Target customers include Vietnamese enterprises and those from key countries and territories where BIDV has a presence or a close relationship such as Japan, Korea and Taiwan (China). As the leading bank in Vietnam, BIDV will provide specific products including fast money transfer, loans with collateral in Vietnam, salary payment to beneficiaries in Vietnam, and transactions between Vietnam and Myanmar.

The branch has charter capital of USD85 million and is set to have total assets of at least USD300 million after three years of operation, aiming to become one of the top five foreign banks in Myanmar.

Mr. Tran Bac Ha, BIDV Chairman commented: “That BIDV is the only Vietnamese bank and the only ASEAN bank licensed in Myanmar proves the position, capacity and reputation of the bank, which is recognised by the Government and the Central Bank of Myanmar. This is thanks to BIDV’s relentless efforts which have contributed to promoting economic relations between Vietnam and Myanmar since 2010. On this occasion, BIDV would like to express its sincere thanks to the Government and the relevant ministries and business communities of both countries for their support for BIDV. BIDV is committed to strictly complying with the laws of Myanmar, continuing to make practical and effective contributions to the opening up of the banking system and the economic development of Myanmar.”

Brief on BIDV Yangon branch:

1.      Full transaction name:Joint Stock Commercial Bank for Investment and Development of Vietnam, Yangon Branch (in short: BIDV Yangon).

2.      Head office:Ground Floor and 9th Floor, Hoang Anh Gia Lai Myanmar Center Tower, No. 192, Kabar Aye Pagoda Road, Bahan Township, Yangon, Myanmar.

3.      Initial charter capital: USD85,000,000 (Eighty five million US Dollars).

4.      Chief Executive: Mr. Dang Hai NHA

5.      Products and services:

-       The branch will initially focus on providing banking products and services to foreign enterprises (particularly Vietnam-invested ones), Myanmar banks and local businesses on the basis of cooperation with local banks in Myanmar.

-      Subject to the roadmap and law of Myanmar, the BIDV Yangon will continue providing modern banking products and services tailored to the needs of the local customers.

6.      Website: www.bidv.com.vn/myanmar

 

For more information, please contact:

Bank for Investment and Development of Vietnam JSC

Branding and Public Relations

Tel: (+84)-4-22205544; Fax: (+84)-4-22200399

Email: Banthuonghieu@bidv.com.vn

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