Foreign banks encouraged to acquire weak domestic banks

Thursday, 2018-08-09 10:55:13
 Font Size:     |        Print
 

Deputy PM Vuong Dinh Hue speaks at the forum (photo: VGP)
 Font Size:     |  

NDO - Deputy Prime Minister, Vuong Dinh Hue, said that the Government encourages foreign banks to acquire weak banks in Vietnam, noting that a number of foreign banks are interested in mergers and acquisitions (M&A) deals in Vietnam.

Addressing the “Vietnam M&A Forum 2018: New thrust, new era” conference, Deputy PM Hue said that the Government does not intend to license the establishment of anymore wholly-foreign owned banks but encourages foreign banks to buy weak commercial banks in Vietnam.

According to the Deputy PM, the Vietnamese M&A market has been vibrant and Vietnam has been an attractive destination for foreign investors with increasing FDI attraction and disbursement which is a good basis for M&A. In addition, indirect investment in Vietnam still sees net buying without capital withdrawal.

The Government official stated that M&A is of great significance to the Vietnamese Government in the process of restructuring the national economy, while economic restructuring also creates M&A opportunities for both domestic and foreign enterprises.

Deputy PM Hue noted that the M&A activities can focus on key areas of economic restructuring including finance-banking, State-owned enterprises, and the reform of public sector.

He added that the Government will continue to carry out the equitisation and divestment of State-owned commercial banks and financial companies which will create huge opportunities for M&A deals.

According to Minister of Planning and Investment, Nguyen Chi Dung, the total value of M&A transactions in Vietnam was estimated at a record high of US$10 billion in 2017, an increase of 175% compared to 2016.

The 10th Vietnam M&A Forum was jointly held by the Vietnam Investment Review, the Ministry of Planning and Investment and the AVM Vietnam company.