Under the Prime Minister's Decision No 270 issued in late 2005, the Postal Savings Service Co was empowered to provide payment services such as checks, ATM cards and personal accounts, as well as act as an agent in bond issues. The company has also been permitted to open accounts at the State Bank of Viet Nam and other commercial banks to provide such banking services.
The conversion of the Postal Savings Service Co into a joint stock commercial bank could make the new bank a big fish in the banking pond, according to industry observers, but the bank must meet Government criteria and standards on establishing a new bank.
The State Bank said that there would be nothing standing in the way of VNPT's plan for the new bank in terms of policy. VNPT has set up a base network of branches and is financially secure (chartered capital of the new bank would likely be about 1 trillion VND or 63 million USD).
The world has seen many postal savings companies turned successfully into banks, says the State Bank.
The Postal Savings Co began operations in May 1999 with the initial function of raising capital from the public.
Source: VNA, September 6, 2006
Postal savings Company to become bank
The Viet Nam Post and Telecommunications Group (VNPT) intends to convert its Postal Savings Service Co into the Postal Service Commercial Joint Stock Bank.