Vietcombank to become No.1 bank in Vietnam

January 20, 2015 | 14:58

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The State Bank (SBV) Governer Nguyen Van Binh urged Vietcombank to become a leader in the banking sector in a conference for Business Implementation in 2015 held by Vietcombank on January 16.

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Vietcombank showed healthy results and indicators in its 2014 financial results, as such, the bank should focus on restructuring, improving corporate governance in accordance with international practices and managing bad debts as a role model amongst other banks in Vietnam, Binh commented.

“To be considered as the leader, Vietcombank must show its ability in many aspects including managing bad debts, total assets and accounting for a bigger proportion in both wholesale and retail banking,” stressed Binh.

The bank’s 2014 total assets was reported at VND500 trillion ($23.36 billion), however, to become the number one in total assets, it could take years to achieve if there is no step forward, Binh added.

The governor also encouraged Vietcombank to merge with other banks in 2015 in a bid to strengthen the banking system and shrink down the number of local commercial banks this year.

"To become the number one in terms of size and market share, there is no other way better and faster than merger and acquisition. Vietcombank has long-established strengths in wholesale banking, thus merging with banks who have strong retail edge will help Vietcombank rapidly expand the retail market”, said Binh. “As such, the bank will be one step closer to be the No.1 bank in Vietnam.”

During the conference, Vietcombank general director Pham Quang Dung shared that after its success in 2014, Vietcombank will strive to achieve the minimum profit of VND6 trillion ($280.37 million) in 2015 and at the same time build up a plan for mergers and acquisitions in accordance with SBV’s direction.

By By Trang Nguyen

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