Vietnam to limit or stop issuing new licenses for foreign banks

HANOI (Reuters) - Vietnam will limit or possibly stop issuing new licenses for the establishment of wholly-owned foreign banks in the country, Deputy Prime minister Vuong Dinh Hue said on Thursday.

“Soon, Vietnam will strictly limit, or may stop issuing news licenses for 100-percent foreign owned banks in the country,” Hue said in a statement posted on the government website.

Hue said foreign investors will still be allowed to buy and own existing weak local banks, according to the statement.

Vietnam has so licensed around 10 wholly-foreign-owned banks, such as HSBC Vietnam, Standard Chartered Vietnam, Hong Leong Vietnam, CIMB Vietnam, according to the State bank of Vietnam.

Reporting by Khanh Vu; Editing by Kim Coghill