Ho Chi Minh City-based Sacombank has received approval from Vietnam's central bank to set up its first overseas representative office in Guangxi, China.

This makes Sacombank Vietnam's first listed bank to expand overseas in a strategy the bank says will improve its international trade finance services.

Rolling out

Sacombank says it expects to reach agreement with Chinese banks on cross-border payments using letters of credit (L/Cs), bills of exchange and other trade services with the aim of providing better banking services for traders along the two countries' borders.

Sacombank, formally known as the Saigon Thuong Tin Commercial Joint Stock Bank, says it wants to branch out to Laos and Cambodia this year too. It also plans to expand its domestic business by opening 14 branches in Vietnam by the end of the year.

Previous agreements

Other Vietnamese banks looking to increase L/C business with Chinese counterparts include the Vietnam Technological and Commercial Joint-stock Bank.

Last year it has signed an agreement with the Bank of China on cross-border payments that included arrangements to cooperate in respect of L/C business as well as across a range of other international trade services (DC World News, 13 January 2006).

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