RCE Spreads its Wings to Vietnam

On the heels of the market operations to raise some RM1.5 billion, RCE is back in the news. This time-a foray into Vietnam.

If it can have its way, it will use the modus operandi in Malaysia to deduct loan repayments directly at source. If not, then the possibilities of accruing bad loans must be look into before they embark on this venture. If they are going to play a loan evaluation role, then Southern Bank Vietnam (SBV)has the requisite footprint and threson 11 September 2007,hold to make money.

A Memorandum of Understanding between RCE and SBV to form a joint venture to apply for licences to establish a Finance Company in Vietnam was signed on 11 September 2007. This financial company is a non-bank credit institution regulated by the State Bank of Vietnam.

RCE shall take up an equity stake of up to 30% in the JVCo with SBV at 11%, being the maximum permissible holdings under the Vietnamese regulations. Both RCE and SBV shall further negotiate and arrive at mutually acceptable commercial terms and seek strategic partners to take up the balance equity stakes in the JVCo.

The MOU provides for the parties to enter into definitive agreements after due diligence has been conducted by RCE.

SBV was established 14 years ago and is the second largest joint stock commercial bank in Vietnam with 73 branches and transaction offices. SBV provides a wide range of financial services to small and medium enterprises, exporters and importers, as well as personal banking services to individuals. The Bank was voted "Famous Brand" by consumers in Vietnam in 2006.

The collaboration with SBV would allow RCE to explore opportunities to expand its capabilities in financial services in Vietnam.

Will RCE fly and soar like an eagle in Vietnam?

Azman is shrewd. He will bring home the grub.

Heartsong