Some joint stock commercial banks in Vietnam are increasing their capital to at least 62.9 million U.S. dollars to have sharper competitive edges, local newspaper Vietnam Economic Times reported Monday.

The Technological and Commercial Joint Stock Bank plans to raise capital from over 830 billion Vietnamese dong (VND) (52.2 million dollars) to 1,000 billion VND (roughly 62.9 million dollars) this year, while the Military Bank will double its capital to more than 1,000 billion VND (some 62.9 million dollars), and the Asia Commercial Bank plans to increase capital to 1,300 billion VND (nearly 81.8 million dollars).

Under a decision issued by the State Bank of Vietnam, from June, banks wanting to establish branches must have capital of 20 billion VND (nearly 1.3 million dollars) for each branch. According to a draft banking regulation, Vietnamese joint stock commercial banks wanting to sell shares to foreign investors will have to secure capital of at least 500 billion VND (31.4 million dollars).

Increasing capital will also help Vietnamese banks to compete better with other local rivals, and potential foreign ones in 2010 when wholly foreign-owned banks are allowed in Vietnam, said the report.

Now, Vietnam's biggest joint stock commercial bank, Sacombank, has registered capital of 1,250 billion VND (over 78.6 million dollars). It, the sole local joint stock commercial bank in the country having capital of over 1,000 billion VND (roughly 62.9 million dollars), plans to list its shares in the Vietnamese stock market this year.

The sale of shares of joint stock banks to foreign investors has been permitted by the State Bank of Vietnam, the country's central bank. In 2005, three joint stock banks sold their shares to foreign investors at high prices.

Source: Xinhua