14:46 | 15/12/2015 Finance - Banking
Taiwanese banks and insurers will be able to acquire up to a 100% stake of privately owned Vietnamese banks, The China Post reported, citing Financial Supervisory Commission Chairman Tseng Ming-chung.
Taiwanese banks and insurance companies will be allowed to increase presence in Vietnamese privately owned banks (Photo: Internet)
The Vietnamese government promised to allow Taiwanese investors to own 30% of state-owned banks and 100% of local privately owned banks, paving the way for Taiwanese banks to extend their reach into the Southeast Asian market, Tseng said after returning from a trip to Vietnam, the first one ever by the head of Taiwan’s financial regulatory agency.
The official said there was also a possibility that Taiwanese insurers will be allowed to open insurance branches in Vietnam in the future. They are currently only allowed to set up representative offices there.
In return, the Vietnamese government hopes that Taiwan's financial services firms can inject funds into Vietnam’s infrastructure projects.
A number of Taiwanese banks and insurance companies have set presence in Vietnam by setting up branches or representative offices. They include Bank Sinopac, Union Bank of Taiwan, Cathay United Bank, Taishin International Bank, E.Sun Commercial Bank, Fubon Insurance, and Cathay Insurance.
Foreign ownership in a Vietnamese bank is curbed at 30%. The government has stated that it could loosen the limit at ailing banks to help quicken their restructuring.