Vietnam invests into Cambodia in banking and airline

BIDV chairman Bac Ha and Vietnam Airlines General Director Ngoc Minh (two in the middle) declare their investment in Cambodia at the press conference.

Nhan Dan Online- The Bank for Investment and Development of Vietnam (BIDV) will start its operation in Cambodia from July 26. In the meantime, Vietnam Airlines will also announce its co-operation in establishing Cambodia Ankor Airlines.

Speaking at a press conference held in Hanoi on July 23, Chairman of the BIDV’s Boards of Directors, Tran Bac Ha said BIDV has invested to establish the Investment and Development Company (IDCC), Bank for Investment and Development of Cambodia (BIDC), the Cambodia – Vietnam Insurance Company and BIDV representative office in Cambodia.

With an initial capital of US $100 million, the company’s activities cover the banking and finance, trade and insurance sectors.

IDCC is finishing all procedure for the purchase of the Prosperity Investment Bank, a private bank of Cambodia as well as for the establishment of Cambodia – Vietnam Insurance company.

The bank, after being purchased will be renamed the Bank for Investment and Development of Cambodia. “Cambodia now has only 24 commercial banks with not many services, so this is an opportunity for Vietnam to penetrate the market. Around 400 Vietnamese businesses which are now investing in Cambodia are the potential customers of BIDC,” said Ha.

“In the future, BIDC will open its branch in Ho Chi Minh City and later in Hanoi,” Ha added.

The BIDV chairman also revealed that BIDV has got the agreement from the Cambodia National Bank on opening BIDV representative office in Phnom Penh. The representative office is expected to officially open early next month with the aim of providing information for Vietnamese businesses which desire to invest in Cambodia.

Also in the press conference, Vietnam Airlines announced its co-operation in setting up the Cambodia Ankor Airlines.

Vietnam Airlines General Director Vu Ngoc Minh said Cambodia Ankor Airlines will have the initial capital of US $ 100 million. Cambodia Ankor Airlines will launch its inauguration on July 27.