VPBank announces plans to take over weak bank

October 12, 2023 | 11:54
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Amidst the larger backdrop of restructuring within Vietnam's banking sector, VPBank has taken centre stage, declaring its readiness and financial capability to acquire a struggling bank. This bold step signals the bank's commitment to strengthening the country's banking ecosystem.
VPBank announces plans to take over weak bank

During a key dialogue between the government and Vietnamese business magnates on October 11, Pham Thi Nhung, deputy CEO of VPBank, clarified the bank's position.

"We have marshalled the necessary resources and, once the transfer process concludes, our focus will immediately shift to revitalising the bank in question," she conveyed.

Nhung's confidence rests on VPBank's three-decade track record. She firmly believes that the bank's vast experience, coupled with meticulous preparation, places it in a prime position to execute the mandates given by the government and the State Bank of Vietnam.

This marks VPBank's first public acknowledgment of its intention to spearhead such a takeover. A hint was dropped earlier in the year during an annual session by the bank's chairman, Ngo Chi Dung, where he discussed the possibility of assimilating a weak credit institution.

Currently, four banks are under the scanner for potential restructuring, DongABank, Construction Bank (CB), Oceanbank, and Global Petroleum Bank. Before VPBank's recent announcement, Vietcombank and MB had already floated the idea of compulsory acquisitions to their stakeholders. Out of these, only CB's potential alignment with Vietcombank has been detailed.

Adding to the narrative of VPBank's strategic evolution, Nhung divulged another significant piece of news.

The bank is in advanced talks to offload a 15 per cent stake to Sumitomo Mitsui Banking Corporation, a Japanese financial titan and member of the Sumitomo Mitsui Financial Group.

Nhung elaborated, "Such partnerships will significantly amplify VPBank's capital reserves. This, in turn, will escalate our support for medium- and long-term credit, particularly benefiting small- and medium-sized enterprises and green projects."

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By Trung Duong

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