The Laos-Vietnam joint investment bank has become the fastest-growing banking business in Laos, having accumulated an asset that is 25 times the capital it started out with 10 years ago, and averaging an annual increase of 30 percent in profits.
Speaking at a ceremony marking the 10th anniversary of the bank, Mr. Somsavath Lengsavad, deputy prime minister and chairman of the Lao National Bank Executive Committee, expressed confidence that the Lao-Vietnam bank would continue to grow and expand its business incessantly in all sectors despite the on-going global financial and economic crisis.
Over the past 10 years, the bank has increased its registered capital from 10 million to 15 million dollars, and plans to increase again to no less than 37.5 million dollars in the near future.
Currently, the bank's accumulative assets are estimated at over 250 million dollars, a 25-fold increase of its initial assets. Since its establishment, the bank has issued more than 150 million dollars in loans and credits to companies doing trade and investment business between Laos and Vietnam, and has been able to mobilize deposits worth more than 200 million dollars, representing an annual increase of up to 35 per cent.
Despite the fact that it has only four branches in the country, with headquarters in Vientiane, the bank has been able to make a profit of about 30 per cent a year and generate over 450 million dollars or more than 3,000 billion Dong, the Vietnamese currency, in bank transaction and currency exchange services between Laos and Vietnam, according to Mr. Phanxana Khounnouvong, chairman of the Executive Board of the Lao-Vietnamese Bank.
The bank has also extended loans and credits to fund many development projects in Laos, including the Sekhaman dam project in the South of Laos, the construction of Highway 18B to link land transportation from Laos southern provinces to the Vietnamese border, and a number of infrastructure network projects.
Listen to Songrit's report for more details in Lao. (English description by Songrit.)