TIẾNG VIỆT Vietcombank to acquire Construction Bank end of 2023
Vietnam Construction Bank (CB) is expected to be transferred to Vietcombank by the end of 2023. Photo courtesy of CB.
CB's board member and general director Dam Minh Duc announced during the press conference that the transaction had received the Politburo of the Communist Party of Vietnam approval.
The central bank of Vietnam, the State Bank of Vietnam, approved CB's business plan for the first time last year, he said, adding the lender had achieved its goals ever since it was compelled to restructure in 2015.
Duc disclosed that the entire amount of CB's deposits exceeded VND20 trillion ($857 million). Both for corporate loans and consumer loans, its net credit increase exceeded VND5 trillion ($214 million).
After changing its name from VNCB to CB in March 2015, Vietcombank, a state-run institution, provided complete support.
Following the central bank's acquisition and restructuring of the underperforming CB, Vietcombank designated Nguyen Van Tuan as board chairman.
Pham Quang Dung, the board chairman of Vietcombank, revealed that the bank will be required to take over an insolvent lender during the bank's annual general shareholder meeting in April of this year.
According to Dung, Vietcombank has a duty and an opportunity in acquiring a struggling bank.
Aside from Vietcombank, other banks in the nation sought approval from their shareholders for their plans to acquire institutions with bad credit, including VPBank, MSB, and MB.
