UPDATE 1-Vietnam-Russia Bank to expand business to Moscow
(Changes attribution, adds details)
HANOI, Aug 15 (Reuters) - Vietnam-Russia Bank has obtained permission to establish a 100-percent owned bank in Russia, Vietnam's first investment in an overseas bank, the central bank said.
The Hanoi-based unlisted venture would still need a licence from the Planning and Investment Ministry before opening the unit in Moscow, the State Bank of Vietnam said in a statement seen on Friday.
Vietnam-Russia Bank is a $62.5-million venture, 51 percent owned by the Bank for Investment and Development, Vietnam's second-largest, and 49 percent by VTB (VTBR.MM), the second largest lender in Russia formerly known as Vneshtorgbank.
The venture bank said on its website (www.vrbank.com.vn) it plans to establish a domestic network to cover major cities and also aims to do business in Ukraine and Poland. It gave no timeframe.
The venture became operational in late 2006, when Russian President Vladimir Putin was in Hanoi for the Asia Pacific Economic Cooperation summit.
It is the only venture bank to have a non-Asian partner among Vietnam's six such businesses. Vietnamese banks run other ventures with banks from Indonesia, Laos, Malaysia, South Korea and Thailand.
Vietnam-Russia Bank said its total assets reached $228 million at the end of June, up 25 percent from the end of 2007. (Reporting by Ho Binh Minh; Editing by Kim Coghill)
