On January 17th, the State Bank of Vietnam (SBV) completed the planned transfer of four weak banks by announcing the mandatory transfer of Global Petroleum Commercial Bank (GPBank) to Vietnam Prosperity Bank (VPBank) and the mandatory transfer of DongA Bank to Ho Chi Minh City Development Bank ( HDBank ).

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

Governor of the State Bank of Vietnam, Nguyen Thi Hong, presents the Decision on the mandatory transfer of DongA Bank to Mr. Kim Byoungho, Chairman of the Board of Directors of HDBank.
Governor of the State Bank of Vietnam, Nguyen Thi Hong, presents the decision to compulsorily transfer DongA Bank to Mr. Kim Byoungho, Chairman of the Board of Directors of HDBank. Photo: HDBank.

All four of these struggling banks were placed under special supervision by the State Bank of Vietnam in 2015. Their charter capital remained unchanged from before being placed under special supervision. Of these, three banks – OceanBank, CB, and GPBank – were compulsorily acquired by the State Bank of Vietnam for "zero dong".

Following the mandatory transfer, CB, MBV, GPBank, and DongA Bank continue to operate as limited liability banks with 100% of their charter capital owned by the receiving bank, and are permitted to conduct commercial banking business activities as regulated.

All legitimate rights of depositors; the 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 receiving bank.

These banks will operate as subsidiaries or be sold/transferred to new investors after the completion of the mandatory transfer plan.

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

Besides its head office at 109 Tran Hung Dao Street (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 mandatory transfer period to provide GPBank with additional financial resources, develop its business, and improve its performance. The total capital contribution will not exceed 20% of VPBank's charter capital.

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

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

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

DongA Bank was once a prominent bank, especially in remittances and card issuance. At its peak in 2013-2014, DongA Bank boasted a record number of customers among joint-stock commercial banks, exceeding 7.5 million. It also possessed a network of 250 state-of-the-art ATMs capable of accepting cash directly, and continued to lead the market in remittances, reaching US$1.6 billion in 2014.

However, mistakes in lending and operational strategy led to a significant increase in DongA Bank's bad debts, resulting in negative equity and placing the bank under special supervision since August 2015.

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

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

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

In 2012, OceanBank increased its charter capital to VND 4,000 billion. In 2015, the bank transformed its operating model into a wholly state-owned limited liability bank.

From October 17, 2024, OceanBank completed its transfer to MB, which owns 100% of its charter capital, and simultaneously changed its name to Vietnam Modern Commercial Bank Limited (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: Chartered capital of VND 3,000 billion, 1,600 employees, 92 transaction points.

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

On October 17, 2024, the State Bank of Vietnam announced the decision to mandatorily transfer state-owned enterprises (SOEs) that are 100% owned by the State to Vietnam Foreign Trade Commercial Bank (Vietcombank) according to the plan approved by the Government.

As of October 17, 2024, CB's operational network comprises one headquarters and 92 operating locations. The total number of employees is over 1,600.