Investment bank to open offices in Cambodia

HA NOI — The Bank for Investment and Development of Viet Nam (BIDV) plans to open a representative office and an investment company in Cambodia next week.

BIDV, working with Phuong Nam Co, plans to establish the Investment and Development Joint Stock Company of Cambodia (IDCC) with a charter capital of US$100 million, Tran Bac Ha, BIDV chairman said at a press conference in Ha Noi on Thursday.

The IDCC will focus on investment activities, merges and acquisitions. Initially, the IDCC was in negotiations to acquire a 90 per cent stake in a private Cambodian bank to form the Bank for Investment and Development of Cambodia (BIDC) with an expected charter capital of about $50 million.

"Cambodia now has only 24 commercial banks with few services and this is a good opportunity for Vietnamese investors to enter into the market. Whereas, about 400 Vietnamese enterprises that are doing business in Cambodia can be promising clients for BIDC, partly contributing to investment and trade promotion between the two countries," Ha said.

BIDV also plans to set up the Viet Nam Cambodia Insurance Co (CVI).

In addition, the bank plans to establish an association of Vietnamese investors in Cambodia by August to promote investment and trade between the two countries.

Meanwhile, Vietnam Airlines plans to join Cambodian partners to set up Cambodia Angkor Air, Tran Ngoc Minh, chief executive officer, said. The new airline will flyfrom Phnom Penh to Siem Reap on Mondays. Later, it will launch flights to countries in North-eastern Asia, Indochina.

In 2002, bilateral trade between Viet Nam and Cambodia was $240 million. In 2007, it increased to $1.1 billion. Last year, bilateral trade reached $1.7 billion, according to the Ministry of Industry and Trade of Viet Nam. It is estimated that two-way trade will hit $2 billion next year.

Viet Nam’s main exports are instant noodles, plastics, confectionery and fruit, while it imports chiefly rubber, wood, raw materials for garments and auto parts. Viet Nam has a trade surplus with Cambodia.

In terms of investment, Vietnamese companies are pouring money into hydro-power, mining, telecommunications, tourism, trade, finance and banking.

The main investors are Viettel, Electricity of Viet Nam, National Oil and Gas Group, Coal and Mining Industries Group, Viet Nam Rubber Group, Vinamilk, Sacombank, Logistics Germadept Corporation and Toserco Company. — VNS