Taiwanese Banks Target Vietnam and Myanmar to Expand Operations in Southeast Asia

Driven by a rising number of Taiwanese enterprises in Southeast Asia, Taiwanese banks are tapping such opportunity by setting up operations particularly in Vietnam and Myanmar.

With many Taiwanese banks already doing business in Vietnam, others plan to follow suit despite the anti-China riots that erupted in  May and caught some Taiwanese firms in the crossfire, resulting in extensive damage and work stoppage.

Cathay United Bank, a private Taiwanese bank, has a subsidiary, branch and two representative offices in Vietnam, with the other Taiwanese bank branches there belonging to First Bank, Hua Nan Bank, Taipei Fubon Commercial Bank, Mega International Commercial Bank, and Shanghai Commercial & Savings Bank.

E. Sun Bank, Shin Kong Commercial Bank and Taishin International Bank all have representative offices in Vietnam and are  applying to upgrade to branches, with Bank of Taiwan (BOT), Taiwan Cooperative Bank and Land Bank of Taiwan all planning to establish footholds there.

Unlike Vietnam, Myanmar is virgin territory to foreign banks, which have yet to be allowed into its borders, a situation that may reportedly change soon to peak the interest of Taiwanese banks.

First Bank is the first Taiwanese bank to set up a representative office in Myanmar in March  2013 and E. Sun Bank followed suit by establishing a rep. office in Yangon in July 2014. Other Taiwanese banks as Cathay, Mega, CTBC Bank, Shin Kong, Taiwan Business Bank, and BOT all plan to so the same, with the initial set-up capital for a foreign bank being reportedly US$75 million or about NT$2.25 billion. (JL)