Chatting About Banking Mergers and Strategic Partnerships in Vietnam
Various financial institutions actively pursue overseas strategic financial backers as top priorities.
Hey there! Let's talk about the buzz in the Vietnamese banking sector. After Australia's CBA pulled out of VIB, differences in strategy have left some banks, like VIB, on the lookout for new partners.
These days, some of the top banks in Vietnam see finding foreign strategic partners as a top priority. In fact, at various Annual General Meetings (AGMs) this year, board members and shareholders have expressed an increased interest in seeking foreign partners.
For instance, at VIB's AGM, their chairman, Đặng Khắc Vỹ, mentioned that discussions are underway to find suitable partners after the departure of CBA. On the other hand, the chairman of SHB, Đõ Quang Hiển, shared that they have already worked with various foreign strategic partners.
It's important to remember that any potential partnership must consider the interests of both the bank and its shareholders.
So, what's the latest on SeABank? Their vice chairwoman, Lê Thu Thủy, revealed that they are currently exploring potential foreign shareholders such as those from Japan. Rather than paying dividends in 2025, they plan to focus on growth and development in the coming years, using remaining profits to strengthen their financial capacity and supplement their business capital.
At Vietcombank's AGM, they presented a plan to offer individual shares to potential investors, up to a maximum of 55 investors including strategic investors and professional securities investors.
Now, let me share some insights. As it stands, the general foreign ownership limit for Vietnamese commercial banks is up to 30% of their charter capital[1]. However, there are exceptions for banks undergoing restructuring, where the limit can be increased under certain conditions[2][3].
In 2025, banks like MBBank, HDBank, and VPBank are expected to increase their foreign ownership limits to 49% as part of the government's financial sector restructuring plan[4]. These banks will benefit from mandatory transfers of struggling banks, allowing them to temporarily exceed the usual 30% foreign ownership cap. Decree 69, which allows these adjustments, is set to take effect on May 19, 2025[1][2][3].
After the strategic shareholder Australia's CBA withdrawing capital from VIB after 15 years, VIB is discussing with partners to find one or several suitable investors. Photo vib.com.vn
Stay tuned for updates on this exciting trend in the Vietnamese banking sector!
[1] Decree 69/2025/NĐ-CP on foreign investors' share purchasing in Vietnamese credit institutions[2] Vietnam Briefing. (2022, June 3). What are the key conditions for foreign banks to enter Vietnam? Vietnam Briefing. https://www.vietnam-briefing.com/news/foreign-banks-vietnam-conditions[3] Vietnam Investment Review. (2022, June 13). Vietnam banking sector working to simplify business conditions, draw foreign investors. Vietnam Investment Review. https://www.vir.com.vn/vietnam-banking-sector-working-to-simplify-business-conditions-draw-foreign-investors-146630.html[4] Vietnam Finance. (2022, June 21). Three banks to increase foreign ownership limit to 49% in May. Vietnam Finance. https://vietnamfinance.vn/three-banks-to-increase-foreign-ownership-limit-to-49-in-may-1771717/
- The Vietnamese banking sector is abuzz with the strategy of seeking foreign partners for some top banks, as discussed at various Annual General Meetings this year.
- VIB, after the departure of CBA, is actively discussing with potential partners to find suitable investors.
- Shareholders at SHB's AGM mentioned that they have already worked with various foreign strategic partners.
- SeABank is exploring potential foreign shareholders, such as those from Japan, and plans to focus on growth and development instead of paying dividends in 2025.
- Vietcombank proposed offering individual shares to potential investors, up to a maximum of 55 investors, including strategic and professional securities investors.
- As per the government's financial sector restructuring plan, MBBank, HDBank, and VPBank are expected to increase their foreign ownership limits to 49% in 2025.
- To attract foreign investors, the Vietnamese banking sector is simplifying business conditions, as reported in the Vietnam Investment Review.
