This conference is expected to organize after a meeting of ministers from 5 biggest rice production countries in early this September. Banks Capitalize on Growth to Expand A number of local commercial banks are racing to expand their representation nationwide in light of the country's rapidly developing economy and last year's success.

While northern-based banks are trying to consolidate their position in the region and also move south, southern-based banks are heading up to conquer the northern market through expanding or upgrading their representative offices.

The latest move was made last week by state-owned Housing Bank of Mekong Delta (MHB) which received the green light form the State Bank to open a new representative office in Hanoi. The Ho Chi Minh City- based bank said it plans to open the new office at 63 Ly Thai To Street Around the second quarter of this year. The soint-stock Sai gon-Thuong tin Bank (Sacombank) also announced last week it had received approved from the central bank to open a new branch in Tay Ninh province. " We are completing all procedures to open our new office here soon," Said Sacombank's chief executive officer Lam Dao Thao confirmed. State-owned Vietnam Bank for Agriculture and Rural Development (VBARD) said yearly last month it planned to upgrade its current Operation Centre at 2 Lang Ha Street in Hanoi into a full-powered branch, called Thang Long branch. VBARD's chief executive officer Le Van So said the bank's 2003 target was to open at least two branches and five additional operation centre in Hanoi. Vietnam Foreign Trade Bank (Vietcombank) last week reiterated the bank's target for this year of 50 new branches and sub-branches natiuonwide. "We have already opened 13 new offices and branches over the past four months," Vietnam chief executive officer Vu Viet Ngoan said.

The Hanoi-based joint-stock Vietnam International Bank (VBI) said it was expecting work on its two new branches n the northern province of Haiphong and Quang Ninh to commence around the second quarter of this year.

"Before we open our new branches, we are waiting to complete raising VIB's total registered capital from the current VND75 billion ($4.8 million) to at least VND 150-200 billion, which we anticipate to achieve in May," said VIB's chief executive officer Vu Duc Nhuan.

Bankers and analysts said the net work expansion is a good sign of the banking sector's sector development, following the country's growing economic performance over the past decade.

" Vietnam has been growing continuously and heading for global integration step by step. Therefore, there is no reason the banking sector shouldn't also be growing," Ngoan told Vietnam Investment Review But like Ngoan, Nhuan from VIB said the network expansion, to some extent, is largely a move to enhance the bank's representation around the country rather than being an economic priority. "Sometimes banks want to establish a foothold in new areas in order to send a message to potential customers they are there with them. Such moves are made to develop potential opportunities rather than achieve initial aconomic result," Nhuan said. Source: Vietnam Investment Review May 5-11,2003