AsemconnectVietnam - Two major foreign banks, HSBC and Standard Chartered, on September 30 confirmed their normal Vietnam operations, effectively rejecting rumors about their possible closures.

Earlier, quoting a report the central bank sent to the National Assembly Standing Committee before the question-and-answer session by governor Nguyen Van Binh on Monday, some websites reported that the central bank was making procedures to close two HCMC bank branches with one of HSBC and the other of Standard Chartered.

According to HSBC’s statement, on January 1, 2009, with the approval of the State Bank of Vietnam, the Hong Kong and Shanghai Banking Corporation Limited incorporated a 100% foreign owned bank in Vietnam called HSBC Bank (Vietnam) Ltd. based on its HCMC branch.

HSBC Bank (Vietnam) Ltd. received all the legal rights and obligations from the HCMC branch of the Hong Kong and Shanghai Banking Corporation and has since been in fine operation.

In the first half of 2014, HSBC Bank (Vietnam) Ltd. has increased its charter capital from VND3 trillion to over VND7.5 trillion to better serve customers and to demonstrate HSBC’s long-term commitment to this market.

“We are still working with the State Bank of Vietnam to complete relevant procedures to close the previous HCMC branch of the Hong Kong and Shanghai Banking Corporation Limited,” it said.

Standard Chartered also confirmed that it would focus on development of its 100% foreign-owned bank in Vietnam. So, it is going to close the HCMC branch of the parent bank.

On August 28, the central bank gave the nod to the transfer of all assets and loans from the HCMC branch to Standard Chartered Bank (Vietnam) Ltd. and the withdrawal of the operation license of the branch.

The new bank got all the legal rights and obligations from the HCMC branch of the UK’s Standard Chartered Bank and has been in normal operation so far.

Business is as usual at all offices and branches of Standard Chartered Bank (Vietnam) Ltd.