HANOI - VIETNAM has allowed South Korea's Shinhan Bank and Malaysia's Hong Leong Bank Berhad to set up fully owned subsidiaries in the country, the central bank said in a statement on Monday.

Shinhan Vietnam Bank will have registered capital of nearly US$100 million (S$143.8 million) while Hong Leong Vietnam will have registered capital of almost US$60 million, the State Bank of Vietnam (SBV) said in an online announcement.

Based in Ho Chi Minh City, the banks will provide services in capital mobilisation, credit, payment and other fund services, SBV said.

Vietnam has committed to opening up its banking sector after joining the World Trade Organisation in 2007, and has already licensed HSBC, Standard Chartered and ANZ to set up 100-per cent-owned local subsidiaries. -- AFP