New Vietnam bank to start business in May - report
HANOI, Jan 17 (Reuters) - Vietnam's Tan Tao Investment Industry Corp (Itaco), Techcombank and chemicals firm Vinachem will contribute a combined 25 percent of funds to a new bank expected to start business in May, state media said on Thursday. Hanoi-based Techcombank, 15 percent owned by HSBC Holdings (HSBA.L) (0005.HK), and Itaco ITA.HM would each pay 100 billion dong ($6.3 million) for 10 percent of Vietstarbank, the Vietnam News Agency reported.
It said Vinachem, the country's biggest chemicals firm, would own 5 percent of the bank, which will have a capital base of $62 million. The bank has been approved by the central bank, along with eight other new lenders.
The three founding shareholders met on Wednesday to discuss details of the new player, which will compete with four state-run commercial banks, 35 partly private banks, more than 30 foreign banks, and six joint venture banks.
Vietstarbank predicts to earn 19 billion dong in net profit this year and 115 billion next year.
The investment by Itaco, the first industrial park developer listed in Vietnam, marks another step outside its core business after it branched out into highways, power plants and property development.
Last month, Ho Chi Minh City-based Itaco created a subsidiary to build a complex of apartments and offices in the city.
Shares in Itaco stood flat at 134,000 dong ($8.3) at 0418 GMT, valuing the firm at $670 million, the 10th largest of the 141 firms listed on the Ho Chi Minh Stock Exchange .VNI. ($1=16,106 dong) (Reporting by Ho Binh Minh; Editing by Jan Dahinten)
