The delegation, which was in the Union capital on June 16 and June 17 to promote economic cooperation between the two countries, was met by Vice President U MyintSwe, Union ministers as well as the Central Bank of Myanmar Governor and Vice Governor.

Vuong hopes to implement more investment and trade activities in Myanmar through the Bank for Investment and Development of Vietnam (BIDV), which opened a branch in the country in March 2016 with a charter capital of US$85 million. Prior to the branch opening, BIDV had a representative office, which opened in April 2010.

BIDV, which has partnerships with CB Bank, Ayeyarwady Bank and KBZ Bank, mainly provides services to Vietnamese investors but has also given out loans to local small and medium enterprises (SMEs). As at May 31, 2019, BIDV has total assets in Myanmar of US$130 million with mobilized capital of US$46.5 million and loans valued at US$20 million. Compared to 2018, corporate customers have increased by 27pc.

BIDV chair Mr. Phan Duc Tu said there should be longer-term economic ties between the two countries and that the bank will continue to receive the support of the Vietnamese government for these ties.

BIDV Deputy Chief Executive Officer Daw Khin Khin Cho said the bank has become profitable, although the profit, from the beginning of this year to June 17, was only US$350,000.

“The bank’s profits are minimal but we are starting to see it,” she said, adding that the bank was planning to give out loans to local corporations but will study the risks first since Myanmar does not have a rating for companies’ risk profile.

She added that the bank, in partnership with local banks, have extended loans to local SMEs and have been supporting 30 SMEs with their trading and remittance needs.

Total trade with Vietnam in 2018 was valued at US$860 million, with Vietnam having a trade surplus of US$544 million.  The country ranked seventh out of 49 as an investor in Myanmar, with US$2.2 billion and over 200 Vietnamese companies with Myanmar-related businesses. – Translated

Source: https://www.mmtimes.com/news/vietnam-deepen-ties-myanmar.html