STANDARD Chartered today becomes the first of Hong Kong's note-issuing banks to open for business in Vietnam, despite continuing negotiations over its Hanoi reserve fund.
The bank joins 11 other foreign banks with full trading licences for Hanoi operations as the first British bank to trade in the Vietnamese capital just four days before a visit by British Foreign Minister Douglas Hurd.
In the race to operate in Hanoi, Standard Chartered has effectively beaten the rival Hongkong and Shanghai Banking Corp (Hong Kong), whose Ho Chi Minh representatives have yet to obtain approval to apply for a full licence.
About 20 other international banks are in a similar position, with the State Bank announcing last month it would start issuing operating licences again later this year and hinting that up to seven more could be granted.
Hanoi branch manager Tony Morgans said: 'This is something we've been working towards for a long time, so we're very happy to have reached this stage.' 'It's very much a long-term thing. We're here primarily for trade finance and for corporate banking and we don't want to complete with the Vietnamese banks.' Standard Chartered has previously voiced concern about Vietnam's basic legal system and confusing taxation laws, while seeking to reduce the US$15 million fund which the government insists that all branches must keep in reserve at all times.
Mr Morgans, formerly head of Standard Chartered's Indonesian operations, refused to discuss deposits and loans already negotiated in Hanoi but confirmed the $15 million fund was in place.
