On January 17, the State Bank of Vietnam (SBV) completed the transfer of four weak banks as planned when it announced the decision to compulsorily transfer Global Petroleum Commercial Joint Stock Bank (GPBank) to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and compulsorily transfer DongA Commercial Joint Stock Bank (DongA Bank) to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).

Previously, on October 17, 2024, the State Bank also compulsorily transferred Ocean Commercial Bank (OceanBank, now MBV) to the Military Commercial Joint Stock Bank (MB) and Vietnam Construction Commercial Bank (CB) to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).

Governor of the State Bank Nguyen Thi Hong handed over the Decision on compulsory transfer of DongA Bank to Mr. Kim Byoungho, Chairman of the Board of Directors of HDBank..jpg
Governor of the State Bank of Vietnam Nguyen Thi Hong handed over the decision to compulsorily transfer DongA Bank to Mr. Kim Byoungho - Chairman of the Board of Directors of HDBank. Photo: HDBank.

All four weak banks were placed under special control by the State Bank in 2015. The charter capital of these four banks remained unchanged compared to before the time of special control. Of these, three banks, OceanBank, CB and GPBank, were compulsorily purchased by the State Bank at a price of “0 VND”.

After the mandatory transfer, CB, MBV, GPBank, DongA Bank continue to operate in the form of a single-member limited liability bank with 100% charter capital owned by the transferee bank, and are allowed to carry out commercial bank business activities according to regulations.

All legitimate rights of depositors; rights and obligations of customers continue to be guaranteed in accordance with the agreement and legal regulations.

These four banks are also independent legal entities and do not consolidate their financial statements into the consolidated financial statements of the transferee bank.

These banks will operate as a subsidiary bank or be sold/transferred to new investors after the compulsory transfer plan is completed.

GPBank: Charter capital of 3,018 billion VND, 1,400 employees, 85 transaction points

In addition to its headquarters at 109 Tran Hung Dao (Hoan Kiem District, Hanoi), GPBank has 85 branches/transaction offices nationwide; including 45 transaction points in Hanoi and 7 transaction points in Ho Chi Minh City.

This bank currently has a staff of 1,400 employees.

To support GPBank, VPBank will contribute capital to GPBank during the implementation of the compulsory transfer plan so that GPBank can have more financial resources, develop business, improve operating results, the total capital contribution will not exceed 20% of VPBank's charter capital.

DongA Bank: Charter capital of 5,000 billion VND, 4,183 employees, 212 transaction points

As of December 31, 2014, before falling under special control, DongA Bank had charter capital of VND 5,000 billion and total assets of VND 87,258 billion.

The number of branches and transaction offices of DongA Bank is 212, while the number of employees is 4,183 people.

DongA Bank used to be a prestigious bank, especially in the field of remittances and card issuance. At its peak in 2013-2014, DongA Bank had a record number of customers in the joint stock commercial banking system with over 7.5 million customers, owned a new generation ATM network with the function of receiving cash directly up to 250 machines, and remittance activities continued to lead the market with results reaching 1.6 billion USD in 2014.

However, mistakes in lending and operating strategy have caused DongA Bank's bad debt to increase, the bank has negative equity and has been placed under special control since August 2015.

DongA Bank is managed and supported by HDBank to gradually restore operations and improve its financial situation.

HDBank affirms that it will focus resources and restructuring experience to accompany and support DongA Bank in consolidating operations, overcoming shortcomings, aiming to build DongA Bank into a bank with healthy, safe and sustainable finances, ensuring the rights of bank employees, and bringing better benefits to customers and partners.

MBV: Charter capital of 4,000 billion VND, 2,290 employees, 101 transaction points

In 2012, OceanBank increased its charter capital to VND4,000 billion. In 2015, the bank transformed its operating model into a limited liability bank with 100% state ownership.

From October 17, 2024, OceanBank will complete the transfer to MB, with MB owning 100% of the charter capital, and change its name to Vietnam Modern Commercial Joint Stock Bank (MBV).

MBV has 2,290 employees, working at 21 branches and 80 transaction offices nationwide. The bank has a total of 101 transaction points.

CB: Charter capital of 3,000 billion VND, 1,600 employees, 92 transaction points

Vietnam Construction Commercial Joint Stock Bank (CB) was converted from Vietnam Construction Joint Stock Bank according to Decision No. 250/2015 of the State Bank.

On October 17, 2024, the State Bank of Vietnam announced its decision to compulsorily transfer 100% state-owned CB to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) according to the plan approved by the Government.

As of October 17, 2024, CB's network of operations includes 1 headquarters and 92 operating locations. The total number of employees is more than 1,600 employees.