The Megabank of Taiwan has applied for permission to open a branch in the northern port city of Hai Phong, according to the Dau Tu (Investment Review) newspaper.

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

 Taiwanese banks were among the first to arrive in Vietnam, along with the wave of Taiwanese investment in the country in the 1990s. At that time, they mostly operated in Ho Chi Minh City to serve thousands of Taiwanese-invested enterprises in southern localities.

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

 Banking experts said Taiwanese banks are expanding their presence abroad, focusing on the four ASEAN countries of Vietnam, Indonesia, Myanmar and Cambodia, to meet the needs of an investment shift by Taiwanese technology and electronics enterprises. Besides, the move is also in line with Taiwan’s New Southbound Policy and has received support and facilitation from the government.

 If licensed, 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 largest industrial hub in northern Vietnam, and it houses the largest sea port in the region as well as an international airport. A number of big Taiwanese corporation have made their investment there, such as Pegatron, USI and Lite-ON.

 The newspaper said apart from Megabank, other banks seeking to make their presence in northern Vietnam include Taishin, Cathay and CTBC, citing source of the Financial Supervisory Commission of Taiwan.