On January 17, the State Bank of Vietnam (SBV) officially announced the mandatory transfer of Global Petroleum Commercial Joint Stock Bank (GPBank) to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and DongA Commercial Joint Stock Bank (DongA Bank) to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).

Following the transfer, GPBank and DongA Bank will operate as single-member limited liability banks wholly owned by VPBank and HDBank, respectively.

Under the management of VPBank and HDBank, the legal rights of depositors and customers at GPBank and DongA Bank will continue to be safeguarded in accordance with agreements and legal regulations.

VPBank and HDBank, as well-established and capable commercial banks, have the resources and experience to ensure the successful execution of the mandatory transfer plans.

This transfer process, governed by applicable laws, also provides VPBank and HDBank opportunities to expand their operations and implement innovative, modern business models.

Supporting the transferred banks

VPBank has committed to contributing capital to GPBank during the transfer process to strengthen its financial resources and improve its business performance. This capital contribution will not exceed 20% of VPBank’s charter capital.

The bank emphasized that the capital injection would be carefully considered and subject to approval by its Board of Directors to ensure both capital safety and shareholder benefits.

Additionally, VPBank will share its expertise and knowledge to facilitate GPBank's restructuring in line with the mandatory transfer plan.

HDBank affirmed that DongA Bank will remain an independent legal entity and will not consolidate its financial statements with HDBank. Instead, DongA Bank will receive management and support from HDBank to gradually restore operations and improve its financial standing.

DongA Bank and HDBank will also benefit from supportive policies and mechanisms provided by SBV to ensure an effective transfer process.

HDBank, with its proven track record in restructuring and successful M&A projects, aims to stabilize and develop DongA Bank, addressing existing issues and transforming it into a financially robust, safe, and sustainable institution.

Strengthening the banking system

VPBank and HDBank are key players in Vietnam’s banking sector, known for their strong financial positions. The mandatory transfer of GPBank and DongA Bank to these institutions is expected to rehabilitate the two struggling banks while ensuring the legal rights of shareholders and employees.

Mandatory transfers are part of broader efforts to restructure credit institutions under special supervision, as stipulated in the Law on Credit Institutions.

This measure aims to contribute to macroeconomic stability, safeguard national monetary and financial security, and maintain political and social order.

The transfer process has received significant attention from authorities, with the government and Prime Minister providing firm guidance. SBV has coordinated closely with relevant ministries and agencies to direct the banks in developing transfer plans for approval in compliance with legal regulations.

Tuan Nguyen