The government will sell weak banks.

According to Deputy Prime Minister Vuong Dinh Hue, in the banking and finance sector, the Government still encourages mergers and acquisitions (M&A) of small banks to become larger banks. In the near future, the State also has a policy to sell and transfer weak banks and those under special control such as Construction Bank, GP Bank, Oceanbank, etc.

In particular, the Government will restrict and not grant additional operating licenses to 100% foreign-owned banks in Vietnam, but will still encourage and allow foreign organizations and banks to acquire weak domestic banks and convert them into 100% foreign-owned banks.

The government encourages mergers and acquisitions of weak banks.

In addition, the Government will also carry out equitization and divestment from state banks such as equitizing Agribank in 2019; selling off state capital or issuing additional shares to increase charter capital and reduce state ownership at BIDV and Vietcombank. At the same time, the Government has also requested the State Bank to develop a project to restructure financial companies and people's credit institutions; reduce the list of state-owned enterprises holding capital...

“M&A activities are becoming an attractive investment channel, and at the same time an important factor promoting the successful restructuring process of Vietnam in general and of enterprises in particular. The Government is making efforts to act for a truly transparent and favorable investment environment, encouraging M&A activities to develop in both quantity and quality,” Deputy Prime Minister Vuong Dinh Hue affirmed.

According to statistics, the value of M&A deals in Vietnam from 2009 to 2018 reached 48.8 billion USD with more than 4,000 transactions. In 2017 alone, the M&A value reached a record 10.2 billion USD.