Vietnam will be expecting six bank mergers and acquisitions as part of an effort to clean up Vietnam’s banking sectors in 2015.

In the Investment Forum’s Biztalk held on January 12, the State Bank’s (SBV) Deputy Governor Nguyen Thi Hong stressed that the restructure of banks would enhance and improve the banking system’s performance and operations and bring Vietnam’s banking operations towards international standards.

In particular, Vietcombank could merge with Saigon Bank for Industry and Trade while Vietinbank might join OceanBank. Likewise, BIDV would probably do the same with Mekong Housing Bank and Vietinbank could also merge with Petrolimex Bank.

Other banks in the mergers could include Maritime Bank with Mekong Development Bank and Sacombank with Southern Bank whom have been seen with preparation works last year.

SBV however stated that the details of the mergers were not finanliased as yet and any mergers or acquisitions would be formally announced to the market when due.

Vietnam currently has 42 local lenders including many small banks which are deemed to be overcrowed by many economists. Once the mergers and acquisitions take place, smaller and weaker banks could take advantages of the bigger and stronger banks’ financial capability to resolve bad debts and liquidity.

According to credit organisations’ reports, by end of November 2014, bad debts amounted to 3.8 per cent across banks and the government is aiming to cut the level of bad debts to three per cent by end of 2015.

Source: http://www.vir.com.vn