Vietnam’s BIDV, Russia’s VTB sign MoU to boost their JV bank VRB

Visual from Vietnam - Russia Bank website

The Bank for Investment and Development of Vietnam (BIDV) and Russia’s VTB Bank have signed a memorandum of understanding (MoU) this week to strengthen the position of their Vietnam-based joint venture, the Vietnam – Russia Bank (VRB), in promoting economic cooperation between Vietnam and Russia.

The signing ceremony was conducted during the visit of Russian prime minister Dmitry Medvedev to Ho Chi Minh City. According to the agreement, the bilateral trade between the two countries will see development of a unique payment system that allows the transition to national currencies, the rubles and the Vietnamese dongs, in import and export settlements.

The joint venture has been chosen as the main bank and coordinator for export and import operations to and from Vietnam and Russia. A working group for the channel will be established within this month.

In addition, the Vietnamese subsidiary is designated with the function of supporting key economic projects in the energy area and national security.

“VRB will become the main bank in credit, factoring, foreign exchange, guarantees, and other financial and banking operations involving Russia and Vietnam. The parties also agreed to support VRB and strengthen its role in the banking sector,” VTB Bank said.

It added that the first results of the implementation of this memorandum will be reviewed in May, during a scheduled visit of Vietnamese president to Russia. He will be accompanied by Tran Bac Ha, chairman of BIDV.

VRB, set up in 2006, has a total asset of $477 million and outstanding loans of $269 million. It is a familiar name for businesses and entrepreneurs who have regular transactions with both Vietnamese and Russian companies and with the total value of payments at $218.74 million.

Meanwhile, Vietnam – Russia trade turnover has been improving since 2008, hitting $2.6 billion in 2014. The annual growth of two-way trade stands at 28 per cent.

Related stories:

AEC Effect: ASEAN banks follow retail & realty investors, into Vietnam

Vietnamese banks expand in Indochina

BIDV to offload 25% stake to foreign investors

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.