HSBC, Standard to open banks in Vietnam

HANOI, Vietnam (AP) -- HSBC and Standard Chartered Bank have won approval from the State Bank of Vietnam to become the first foreign banks to open their wholly owned entities in the communist country, the bank said Tuesday.
The licenses will be handed over to the two banks later Tuesday in the presence of British Prince Andrew, who is on a five-day visit to the country, the state bank said on its Web site.
HSBC Vietnam, to be headquartered in southern commercial hub of Ho Chi Minh City, will have legal capital of $183 million while Standard Chartered's unit, to be based in Hanoi, will have legal capital of $61 million, it said.
The banks can start their Vietnam operations within 12 months, it said.
"HSBC and Standard Chartered will be the first foreign banks to open wholly owned units in Vietnam," the state bank said "This is a clear signal reflecting Vietnam's strong commitments to WTO."
Under commitments to join World Trade Organization last year, Vietnam promised to open its service sector to foreign competitors.
"We aim to start operating through our new local entity as early as possible," Thomas Tobin, CEO of HSBC in Vietnam said in a statement.
"We hope to become the first foreign bank to operate a fully owned local entity in the fast-growing Vietnamese banking sector and look forward to opening a new chapter in HSBC's history in Vietnam," he said.
HSBC and Standard Chartered have been running branches in Vietnam for years and both have bought stakes in local banks.