Many large multi-national groups have showed interest in the weak banks Vietnam wants to sell. However, they have not moved ahead to implement the plans.

Is restricted licensing to 100 percent foreign-owned banks the right way to save weak Vietnamese banks?

VietNamNet Bridge - In the context of limited domestic resources, attracting foreign capital to banks is seen as a viable solution to bank restructuring.

VietNamNet Bridge – Vice Chairman of the National Assembly’s Economic Committee Nguyen Duc Kien spoke with Nhan Dan (People) newspaper about the restructuring of the banking sector and solutions to deal with bad debts.

 VietNamNet Bridge – In an interview late last year with a Wall Street Journal reporter, the State Bank of Vietnam’s Deputy Governor Nguyen Thi Hong said it was encouraging weak banks to voluntarily restructure themselves in 2015

 VietNamNet Bridge – Even though It is difficult to find investors who want to take over banks on the verge of ruin, very few banks are going bankrupt.

Six or seven banks are to be merged this year, according to information disclosed by Nguyen Van Binh, Governor of the State Bank of Vietnam, at the monthly government meeting on April 1. This will bring the number of dissolved banks to seven to ten.

VietNamNet Bridge – An impending merger between Southern Bank and Sacombank is the latest move in Vietnam’s banking restructuring process.  

 VietNamNet Bridge – The State Bank of Vietnam (SBV) encourages foreign credit institutions to contribute capital and purchase shares of Vietnamese credit institutions while continuing to evaluate and identify some weak banks to take on restructuring.

 VietNamNet Bridge – Many banks, including the major ones, are expecting the Government to increase foreign ownership cap in the banking sector and are ready with plans to sell strategic stakes, Vietnam Investment Review has reported.

 VietNamNet Bridge – The compulsory restructuring of 8 out of the 9 weak banks has completed successfully.

 VietNamNet Bridge – The State Bank of Vietnam (SBV) will be able to acquire stakes in those banks kept under special control when Decision 48/2013/QD-TTg of the Prime Minister takes effect on September 20.

 VietNamNet Bridge – Under performing banks may have to file for bankruptcy if they cannot meet new conditions set out by the central bank under a recently issued circular that is effective on April 27.