On September 4th, MB Cambodia Bank, a subsidiary of Military Commercial Joint Stock Bank (MB), opened a new headquarters and a new branch in Cambodia’s capital Phnom Penh.
In his speech at the inauguration and license granting ceremony for MB Cambodia, Governor of the National Bank of Cambodia Chea Chanto affirmed that MB’s decision to expand investment in the Cambodian market after nine years operation showed the increasing faith of Vietnamese investors in Cambodia. The investment brings economic benefits and prosperity for both countries, while contributing to tightening solidarity between the two peoples.
According to experts, over the past 10 years, Vietnamese banks like MB, BIDC, Agribank, Sacombank Cambodia, and SHB have made great contributions to Cambodia’s macro-economy through credit loans with low interest rates.
Earlier, as no Vietnamese banks were operating at the market, Cambodian people were subject to interest rates of 12-15% a year. Now, the investment of Vietnamese banks has created competition, contributing to cutting the lending rate to 6.5-7.5% a year.
Vietnam has so far invested in 214 projects worth USD3.2 billion in Cambodia. Thanks to maintaining the high economic growth rate at 7 percent per year and political stability, Cambodia has become an attractive market to Vietnamese firms.
In the first seven months of 2019, Vietnam had four new investment projects in the country and four others with increased capital, with total registered capital of USD38.5 million, equal to the capital poured into Cambodia in 2018.