Vietcombank's headquarters in Hà Nội. Vietcombank's Australia Branch has a capital of A$71 million (US$47.9 million). Photo Vietcombank

HÀ NỘI Vietcombank is heading to Australia and could open for business in Sydney within the next 12 months.

Vietcombank on Wednesday got approval from the State Bank of Việt Nam’s Governor to open a branch in Australia.

The branch, named Joint Stock Commercial Bank for Foreign Trade of Vietnam - Australia Branch, has a capital of A$71 million (US$47.9 million).

Under Document No 7891/NHNN-TTGSNH, Vietcombank must complete the opening of the branch within 12 months from the date of the SBV’s approval. Beyond this time limit, the approval will automatically expire.

Within 14 working days before the opening of the Australian branch, Vietcombank must also report in a written document to the SBV’s Banking Inspection and Supervision Agency.

The bank is also required to comply with Việt Nam’s laws on offshore investment and other legal regulations on the establishment and operation of branches abroad besides meeting Australia’s procedures required for establishing and opening branches in the country.

Vietcombank must manage and monitor the activities of the Australian branch to ensure it operates safely, efficiently and in compliance with Australia’s legal regulations, the document noted.

Earlier in October last year, Vietcombank also obtained the US Federal Reserve’s approval to open a representative office in New York City after launching its first overseas bank in Laos, besides representative offices in Singapore and Hong Kong.

The moves aim to confirm Vietcombank’s prestige and position in the international community, while paving the way for the bank to gain a place among the world’s top 300 banking and financial groups.

Currently, Vietcombank has more than 500 branches, representative offices, and member companies in Việt Nam and overseas.

Experts forecast free trade agreements, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Việt Nam FTA, would contribute to increasing Việt Nam’s overseas investment significantly, including finance and banking.

Financial and banking expert Cấn Văn Lực said FTAs were opening significant opportunities for businesses investing abroad, facilitating banks to open branches in foreign countries to provide banking services.  VNS