Specifically, after considering the application for a license to establish and operate a 100% foreign owned bank in Vietnam of UOB, SBV has approved in principle as well as the personnel list.
The UOB will still need to continue completing some other procedures, according to the SBV's regulations and guidance in order to be considered and granted a business licence for establishment and operation in Viet Nam.
The SBV has also permitted the UOB to set up an affiliate based on the takeover of the bank’s HCM City branch right after being granted business licence.
With the above plan of UOB, Vietnam is expected to have more banks with 100% foreign capital, besides ones were officially established and licensed from the end of 2016 up to now.
By the end of 2016, the market recorded another round of investment and expansion of foreign banks' operations in Vietnam, such as Woori Bank (South Korea), CIMB Bank Berhad (Malaysia).
Prior to this, ANZ, Hong Leong, HSBC, ShinHan and Standard Chartered have also opened wholly foreign-owned banks in Viet Nam.
According to experts, more foreign banks are expected to enter Viet Nam’s market which has major potential with a population of roughly 93 million.
By 2020, in accordance with the commitment to the World Trade Organisation, Viet Nam will have to completely open the doors of its banking sector.