Bangkok Bank, Thailand’s largest lender by assets, has more than tripled its registered capital in Vietnam as it targets an ambitious loan growth of 18 percent this year.
Tharabodee Serng-Adichaiwit, general manager of the Vietnam branch, said in a Bangkok Post report that the bank is positive Vietnam’s economic growth will maintain the impressive pace of 6.7 percent last year, thanks to strong domestic consumption, an influx of foreign direct investment and exports.
He said Vietnam is shifting from equity-based financing to financial borrowing and its new car sales are expected to increase 30 percent this year, which will create rapid expansion of consumer finance and strengthen competition in the banking industry.
Vietnam received US$10.15 billion of foreign investment pledges in the first five months this year, up a staggering 136 percent from a year ago, according to new data.
The bank, which has more than 20 years of experience in Vietnam, said it will focus on outbound FDI business by suggesting Vietnamese clients enter markets with growth potential such as China and Myanmar.
Multinational customers account for half of the branch’s outstanding loans, followed by 40 percent by Thai customers and 10 percent Vietnamese, Bangkok Post reported.
The branch has reported a non-performing loan ratio of 0.3 percent, compared to 2.6 percent of Vietnamese banking industry’s rate.