The prospect for bank mergers and acquisitions in Vietnam is accelerating, notably the purchase of struggling credit institutions for the sake of reorganisation.

A survey by the Bank for International Settlements (BIS) published in May states that there are currently 81 countries participating in Central Bank Digital Currency research and development (CBDC), compared to only eight countries before 2017.

In addition to plans to list their shares or move to another stock exchange, many banks have planned to increase their charter capital by paying dividends in shares and offering shares to foreign stakeholders this year.

Vietnam's banking industry has made great strides after nearly a decade of restructuring. Most banks have recorded very high profits, worth hundreds or even billions of USD in recent years.

Experts forecast that bank net interest margins (NIM) will decline as inflation rises next month.

The charter capital increase of the banking industry this year is starting to heat up with many banks simultaneously implementing related plans.

Experts forecast that bank net interest margins (NIM) will decline as inflation rises next month.

Vietnam’s merger and acquisitions (M&A) market in 2022 is forecast to include big deals worth billions of dollars in the banking industry.

Commercial banks were told to launch a 40 trillion VND support package with a 2 percent yearly rate cut for businesses in a meeting with the State Bank of Vietnam (SBV) last week.

Banks have faced pressure to increase their charter capital over the past few years to enhance their financial capacity and improve safety indicators to get closer to international standards.

The shareholders’ meeting of Military Bank held on April 25 approved a plan on admitting one credit institution under a compulsory transfer mode.

It is estimated that the four largest state-owned banks in Vietnam (Big 4) will have to increase billions of USD to meet the need for capital to maintain the capital adequacy ratio (CAR) at 10%.

Experts have raised concerns about the involvement of real estate companies in commercial banks, warning it may pose risks to the financial system and the whole economy.

MB on March 15 held a conference to present details on the bank's current status, as well as its strategic approach for the future.

By 2025, Vietnam will have a generation of "digital customers". This generation has higher expectations about digital financial products and services.

Four state-owned commercial banks in Vietnam, namely, Vietcombank, VietinBank, BIDV, and Agribank, have held lead position in the banking industry since 2017.

This year, changes of hands are likely at some banks, in addition to mergers and acquisitions (M&A) and share sales to foreign partners. 

Many banks are rushing to sell land and other assets used as collateral for loans to collect debts, including properties worth trillions of dong.

The decade-long power struggle at Eximbank has blocked tens of trillions of dong worth of dividends and trapped shareholders. The problem may be solved after the latest move of the foreign shareholder.

The prospects of strategic deals and ease in foreign ownership rules might provide commercial banks with more firepower.