What are Viet Phuong Group and VietABank "planning"?

In the context of the Vietnamese banking industry accelerating restructuring and strengthening supervision of ownership activities, the relationship between Viet Phuong Group and VietABank is currently attracting considerable attention from the public and experts. In particular, when the State Bank's leaders recently said that cross-ownership control faces difficulties due to the situation of "standing in the name of others".

Not fully complying with the provisions of the Law on Credit Institutions

The links between investment groups and financial institutions not only reflect the integration trend but also raise questions about transparent governance and legal compliance. Accordingly, as the largest shareholder at VietABank, Viet Phuong Group not only holds a significant proportion of shares but also has close ties in personnel and management with this bank.

It is noteworthy that at present (May 29, 2025), VietABank has not yet fully complied with the provisions of the Law on Credit Institutions 2024 on share ownership ratio, when the total holding ratio of shareholders and related shareholder groups exceeds the legal limit.

Specifically, Viet Phuong Group and related parties currently own a total of more than 107 million VAB shares, equivalent to 19.84% of VietABank's charter capital, exceeding the 15% limit prescribed by law for a shareholder and related person at a credit institution.

Not fully complying with the provisions of the Law on Credit Institutions

According to the Law on Credit Institutions 2024, effective from July 1, 2024, the limit on share ownership ratio is stipulated as follows: Shareholders who are organizations: must not own more than 10% of the charter capital of a credit institution. Shareholders and related persons: must not own more than 15% of the charter capital of a credit institution.

On the other hand, Viet Phuong Group (VPG) is known as a multi-industry investment group, operating in many economic sectors such as real estate, mining, energy, banking, finance and pharmaceuticals. Meanwhile, Viet A Commercial Joint Stock Bank (VietABank) was established on July 4, 2003, on the basis of the merger between Saigon Finance Joint Stock Company and Da Nang Rural Commercial Joint Stock Bank. Notably, the headquarters of both units are located at Samsora Premier Building, 105 Chu Van An, Yet Kieu Ward, Ha Dong District, Hanoi.

In addition, there is a blood relationship between the two Chairmen of these units. Specifically, Mr. Phuong Thanh Long - Chairman of the Board of Directors of VietABank is the nephew of Mr. Phuong Huu Viet - Chairman of the Board of Directors of Viet Phuong. Notably, Mr. Viet also held the position of Chairman of the Board of Directors of VietABank from 2011 to 2021.

This situation not only raises questions about transparency in banking governance, but also raises concerns about the risk of domination and manipulation of credit institutions' operations - something that the Vietnamese banking system is trying to prevent to ensure national financial safety.

Is Viet Phuong's divestment of shares at VietABank enough to comply with the Law on Credit Institutions?

The fact that the ownership exceeds the ceiling not only violates the law but also raises concerns about the ability of Viet Phuong Group to control VietABank's operations, which affects the transparency and safety of the banking system. Therefore, adjusting the ownership ratio of Viet Phuong Group and related parties is necessary to ensure the stability and sustainable development of VietABank.

And to comply with regulations, Viet Phuong Group recently sent a document to the State Securities Commission and the Hanoi Stock Exchange regarding stock transactions of insiders and related persons of insiders of Viet A Commercial Joint Stock Bank (VietABank - UPCoM: VAB). Accordingly, this organization has registered to sell 17 million VAB shares by negotiation or order matching in the period from May 28 to June 26, 2025. Before the transaction, Viet Phuong owned more than 65.9 million VAB shares, equivalent to 12.21%.

Chairman of VietABank Board of Directors - Phuong Thanh Long

The purpose of this divestment is mainly to adjust the ownership ratio according to the provisions of the Law on Credit Institutions (an organization shareholder is not allowed to own shares exceeding 10% of the bank's charter capital). However, according to the list of shareholders holding more than 1% of the charter capital announced earlier, Viet Phuong Investment Group and its related parties own more than 107 million VAB shares, equivalent to 19.8% of the bank's capital. This ratio has exceeded the ceiling compared to the regulation that shareholders and related parties of that shareholder are not allowed to own shares exceeding 15% of the charter capital of a credit institution.

In addition, Mr. Phuong Huu Viet is also holding 24.55 million shares, equivalent to 4.55% of capital. Mr. Viet's related persons are also holding 75.8 million shares, equivalent to 14.05% of capital. In total, Mr. Viet and his related persons are holding 18.55% of the bank's capital.

On the stock market, in the session on May 29, VAB shares stood still at VND13,900/share with a trading volume of nearly 400,000 units. It is estimated that at the above price, Viet Phuong expects to earn more than VND230 billion from this share sale.

If the transaction is successful, the group's ownership ratio at VietABank will decrease from 12.21% to 9.06%. However, the reduction in Viet Phuong Group's ownership ratio may not be enough to bring the total ownership ratio of the related shareholder group to the legal level (15% as prescribed). This requires continued divestment from related individuals and organizations to ensure compliance with legal regulations.

Will Viet Phuong Group's position at VietABank change?

Viet Phuong Group registered to sell 17 million VAB shares from May 28 to June 26, 2025, reducing its ownership ratio at Viet A Commercial Joint Stock Bank (VietABank) from 12.21% to 9.06%, mainly to comply with the provisions of the Law on Credit Institutions 2024, limiting the ownership ratio of an organization at a bank to no more than 10% of charter capital.

Mr. Phuong Huu Viet, Chairman of the Board of Directors of Viet Phuong Group and former Chairman of the Board of Directors of VietABank (2011–2021)

Although the group has reduced its stake in VietABank to comply with legal regulations, it still maintains significant influence in the bank through its network of related shareholders and extensive credit relationships. Therefore, the influence of Viet Phuong Group in VietABank may not change or will be insignificant in the near future.

However, there will still be legal and shareholder status impacts when reducing the ownership ratio below 10%, Viet Phuong Group will no longer be a major shareholder according to the legal definition, which may affect some rights such as the right to nominate candidates to the Board of Directors or the right to access special information.

However, despite the reduction in direct ownership, Viet Phuong Group still maintains significant influence at VietABank through its network of related shareholders. Mr. Phuong Huu Viet, Chairman of the Board of Directors of Viet Phuong Group and former Chairman of the Board of Directors of VietABank (2011–2021), currently owns 4.55% of VAB shares. The group of shareholders related to Mr. Viet holds a total of 14.05% of the bank's charter capital. Notably, the current Chairman of the Board of Directors of VietABank is Mr. Phuong Thanh Long, the nephew of Mr. Phuong Huu Viet.

At the same time, VietABank has credit relationships with businesses in the ecosystem of Viet Phuong Group, founded by Mr. Phuong Huu Viet. This shows the close connection between the bank and the group, beyond the normal shareholder relationship.

In another development, the reduction in ownership ratio comes as VietABank prepares to list nearly 540 million shares on the Ho Chi Minh City Stock Exchange (HoSE) and aims to significantly increase its charter capital. This move could be part of the bank’s strategy to restructure its investment portfolio and prepare for its next steps of development.

Source: https://baodaknong.vn/viet-phuong-group-va-vietabank-dang-toan-tinh-gi-253994.html