Some joint stock commercial banks in Vietnam will raise their registered capital over the threshold of 1,000 billion Vietnamese dong (VND) (62.9 million U.S. dollars) in the next few months to sharpen their competitive edge in global integration process, local newspaper Investment reported Wednesday.

The Technological and Commercial Joint Stock Bank (Techcombank) plans to double its registered capital to 1,500-1,687 billion VND (94.3-106.1 million dollars) in November from current over 830 billion VND (52.2 million dollars).

The Southern Joint Stock Bank will increase capital to 1,430 billion VND (89.9 million dollars) from current 600 billion VND ( 37.7 million dollars) soon. Meanwhile, the Vietnam Export and Import Bank is scheduled to raise capital to 1,200 billion VND (75. 5 million dollars) from current 815 billion VND (nearly 51.3 million dollars).

Techcombank's vice general director Luu Duc Khanh said if Vietnamese banks did not make careful financial preparations for upgrading equipment and technology, and improving their services' quality, they would find it hard to survive when wholly foreign- owned banks are allowed in Vietnam.

As of April 2007, U.S. banks will be able to establish 100- percent foreign-invested subsidiaries in Vietnam, and take unlimited local currency deposits from legal entities, according to a deal between Vietnam and the United States on Vietnam's entry to the World Trade Organization (WTO) which was officially signed in May.

Now, Vietnam limits foreign banks to a minority shareholding position of 49 percent, but allows bank branches.

Source: Xinhua