In order to meet development demands and increase competition capacity against foreign competitors, domestic banks are step by step expanding operations and diversifying business lines. The optimum solution being opted by many lenders is to promote strategic cooperation with financial and non-financial partners.
Meanwhile banks with chartered capital of less than three trillion dong are seeking ways to hike chartered capital to meet State Bank of Vietnam (SBV)'s requirement.

According to the roadmap while joining World Trade Organisation (WTO), from January 1, 2011, foreign banks will have full ranges of operations in Vietnam. This requires lenders to enhance competition capacity, professionalism and modernisation in operations to gain market share.

One of ways being promoted by many lenders is to collaborate with other banks to increase their added values. For example, Vietnam Commercial Joint Stock Bank for Industry and Trade (Vietinbank) and HCM City Housing Development Commercial Joint Stock Bank (HDBank) have recently signed a comprehensive cooperation agreement hereby the two signatories will jointly cooperate and promote operations in interbank market and finance projects aiming to expand and develop business activities. Thus, the two partners will give priorities in using services and products of each other to take full advantages of potential as well as competition capacity of each other.

Pham Huy Hung, Vietinbank's chair of director board, said that the cooperation will open opportunities for both partners to carry out development strategies in the integration period.
Nguyen Huu Thanh, HDBank's chair of director board said that the agreement will create cooperation in the business development strategies of each other, aiming to a common goal of "bringing more and more utilities for customers".

Earlier, Bank for Investment and Development of Vietnam (Bidv) and Ocean Commercial Joint Stock Bank (Ocean Bank-OCB) also signed a comprehensive cooperation agreement to co-promote banking activities, co-develop financial services and create favourable conditions for the development both partners.

Not only inking deals with partners in finance sector, some banks have enhanced integration activities with many firms in non-finance sector. Maritime Commercial Joint Stock Bank (Maritime Bank) has recently signed strategic cooperation agreement with IBM Vietnam whereby IBM will frequently provide Maritime Bank latest products, solutions and services relating to banking information technology field.

Vo Tan Long, IBM Vietnam's general director, said, "we believe to bring Maritime Bank the necessary technology supports as well as high quality services to contribute to the success of Maritime Bank. The agreement is a new advance in the relationship between IBM Vietnam and Maritime Bank hereby the two partners are able to share more and more successful cooperation chances".

WonderBuy-a supermarket system of computer and electronic products, has recently announced a comprehensive cooperation with HDBank. Accordingly, WonderBuy along with its partners including over 60 foreign and domestic computing groups and corporations will be strategic customers of HDBank in managing accounts and using banking services and products.

Particularly, HDBank will create favourable conditions for WonderBuy and its partners to use the bank's services and products with preferential fees. In addition, WonderBuy will give priorities in introducing customers to HDBank.

With this comprehensive cooperation, WonderBuy and HDBank plan to co-launch preferential programmes for customers of the two partners in coming time.

According to Duong Thu Huong, general secretary of Vietnam Bank Association (VNBA), the cooperation between banks and financial and non-financial partners is need of the hour for the development of banking sector and it will be able to bring added values and benefits to each other.

(Source: Intellasia)