Taiwanese-owned E.SUN opened its first branch in the southern province of Dong Nai on September 18. File photo
E.SUN has become the 11th Taiwanese bank to be licensed for operation in Vietnam, with its first branch opened in the southern province of Dong Nai on Friday, news website Saigon Times Online reported.
CEO Joseph N.C.Huang was quoted as saying that its main target here is joining local banks in participation loans, adding that it also targets the retail banking segment in the future.
The branch's charter capital is US$30 million, the website reported.
Taiwan is now the fourth biggest investor in Vietnam, after South Korea, Japan and Singapore, with 2,460 projects registered and more than US$29.1 billion as of August, according to official figures.
The State Bank of Vietnam early this week reported that foreign banks have established 47 branches and 53 representative offices around the country, accounting for 6.92 percent of the local banking sector's assets as of December 31 last year.
It said five wholly foreign owned banks and four joint-venture banks accounted for 3 and 0.75 percent of the total assets, respectively.
In terms of credit, foreign banks' market share declined from 9.2 percent in 2009 to 8.28 percent last year, partly due to local and international difficult economic situations, the state bank said.
It is also because in 2010 Vietnam ordered foreign bank branches to strictly lend money in proportion to their own registered capital, instead of their parent banks', according to the state bank.
However, foreign banks still managed to achieve positive business results, posting a combined profit of more than VND5.38 trillion ($236.52 million) last year, up 2.1 percent from 2010.