People ride motorcycles in front of the headquarter of the State Bank of Vietnam in Hanoi on Nov 19, 2024. (Photo: Reuters)
HANOI - Foreign banks are seeking a bigger foothold in Vietnam by extending hard-currency loans to local lenders squeezed between rising domestic funding costs and government pressure to expand credit to meet ambitious economic growth targets, bankers and analysts said.The growing reliance on offshore funding highlights a central challenge for Communist Party chief To Lam's economic agenda, with banks expected to bankroll most of the planned infrastructure projects worth about $200 billion and support annual growth of at least 10% through 2030 despite mounting funding strains.
Chinese, Taiwanese and Middle Eastern banks are among those said to have shown interest as Vietnamese lenders seek offshore funding, said Willie Tanoto of Fitch Ratings, noting the size of discussed syndicated deals has reportedly been around several hundred million dollars.
Several foreign banks operate in Vietnam through branches, and more could enter under the government's plan to establish international financial centres, analysts said, though key details remain unclear.
Japanese and South Korean banks are already strategic investors in some of the country's largest lenders.
