Hanoi (VNA) – The Megabank of Taiwan has applied for permission to opena branch in the northern port city of Hai Phong, according to the Dau Tu (InvestmentReview) newspaper.

Itis noteworthy that Megabank is just one among several Taiwanese banks lookingto open branches in Vietnam’s northern localities in anticipation of a wave ofinvestment into the Southeast Asian country by technology enterprises.

Taiwanesebanks were among the first to arrive in Vietnam, along with the wave ofTaiwanese investment in the country in the 1990s. At that time, they mostlyoperated in Ho Chi Minh City to serve thousands of Taiwanese-investedenterprises in southern localities.

Taiwanhas the largest number of banking branches and rep offices in Vietnam, with thepresence of over 10 banks. Taiwanese investors are running 2,764 FDI projectsin Vietnam, and most of them use services of Taiwanese banks.

Bankingexperts said Taiwanese banks are expanding their presence abroad, focusing onthe four ASEAN countries of Vietnam, Indonesia, Myanmar and Cambodia, to meetthe needs of an investment shift by Taiwanese technology and electronicsenterprises. Besides, the move is also in line with Taiwan’s New SouthboundPolicy and has received support and facilitation from the government.

Iflicensed, Megabank will be the first Taiwanese bank to have a branch in Hai Phong.Explaining why choosing the city, the bank said Hai Phong is the second largestindustrial hub in northern Vietnam, and it houses the largest sea port in theregion as well as an international airport. A number of big Taiwanese corporationhave made their investment there, such as Pegatron, USI and Lite-ON.

Thenewspaper said apart from Megabank, other banks seeking to make their presencein northern Vietnam include Taishin, Cathay and CTBC, citing source of theFinancial Supervisory Commission of Taiwan./.