HCMC – Vietnam’s central bank has announced that two struggling commercial banks, GPBank and DongA Bank, will be transferred to VPBank and HDBank, respectively.
The move is part of a broader plan to restructure the banking sector.
At a ceremony held in Hanoi on January 17, State Bank of Vietnam (SBV) Governor Nguyen Thi Hong emphasized the complexity and necessity of addressing weak banks to safeguard economic and monetary security, reported the Government news site baochinhphu.vn.
Under the transfer, GPBank will become a wholly owned subsidiary of VPBank, while DongA Bank will operate under HDBank. The initiative aims to return the banks to normal operations in compliance with safety regulations.
The SBV has coordinated with other government agencies to draft restructuring plans within existing laws. Proposed amendments to the Law on Credit Institutions in 2024 aim to bolster the legal framework for managing troubled banks.
“These transfers mark the beginning of a concerted effort to stabilize weak banks and strengthen Vietnam’s financial system,” said Governor Hong, adding that the central bank has established a clear roadmap and assigned specific tasks to ensure seamless implementation.
VPBank and HDBank volunteered to take over the troubled banks, demonstrating their capacity and readiness to support the restructuring process, according to the SBV. The central bank has pledged financial and regulatory support to facilitate the transition and protect stakeholders’ interests.
Both GPBank and DongA Bank will remain fully operational under their new ownership, with depositors’ and customers’ rights safeguarded. The acquiring banks are expected to capitalize on the opportunity to expand their operations and offer modern banking services.
VPBank Chairman Ngo Tri Dung stated that the decision reflects the Government’s confidence in the bank’s ability to manage the transition effectively. Pham Quoc Thanh, general director of HDBank, described the acquisition as an opportunity to grow and modernize while contributing to the stability of Vietnam’s financial system.
