Bank Mergers and Acquisitions: Is the Market Heating Up?

Banks Proactively Seek M&A Opportunities

Historically, M&A activities in Vietnam’s banking sector primarily involved restructuring and merging weaker banks. Since the beginning of this year, the most notable trend in bank M&A has been the rise of mandatory transfer deals. Notably, Vietnam Construction Bank (CBBank) and Ocean Bank were officially transferred to Vietcombank and Military Commercial Joint Stock Bank (MB), respectively. VPBank took over GPBank, and HDBank acquired Donga Bank.

Looking ahead to 2026, banks are expected to leverage M&A opportunities to attract foreign capital, adopt advanced international management practices, expand customer bases and services, and ultimately create stronger, more transparent, and modern institutions ready to compete regionally and globally. When managed effectively, M&A can not only eliminate underperforming banks but also shape a stable and sustainable financial system.

Mr. Do Quang Vinh, Vice Chairman of SHB Bank, stated at the M&A Forum on December 9 that current capital sales or mergers are no longer driven by financial distress or weakness. Instead, companies are proactively seeking opportunities to expand internationally. With the backing of foreign investors, domestic enterprises can strengthen their operations, improve efficiency, enhance financial resources, and leverage global networks and systems of their partners.

To attract high-quality capital, SHB representatives emphasize that transparency is the core factor international investors prioritize. Vietnamese companies must meet international standards in financial reporting, financial management, and risk management.

Mr. Vinh also highlights that listing on the stock exchange is a significant advantage. Enhanced financial transparency increases access to foreign capital, bolstering a company’s potential and market position.

Regarding SHB’s strategy, Mr. Vinh notes that the bank seeks long-term foreign investors with aligned visions. “Partnerships should go beyond individual M&A deals, fostering mutual growth, joint operations, and benefits for both parties,” he adds.

Citing the successful capital transfer at SHB Finance, Mr. Vinh mentions that despite negotiations occurring during the challenging COVID-19 pandemic, the deal succeeded due to close collaboration and adherence to international standards.

“I am confident that significant deals will soon emerge across all sectors, not just banking. With this new trend, we are fully confident in restructuring businesses and attracting massive foreign investment. This will be a key driver for Vietnam’s GDP growth in 2026,” Mr. Vinh predicts.

Banks Open Doors to Foreign Investment

Vietcombank, BIDV, and other banks are also considering plans to sell stakes to foreign investors. Meanwhile, the foreign ownership cap for banks receiving mandatory transfers, such as MB, HDBank, and VPBank, has been raised to 49% under Decree No. 69/2025/NĐ-CP, amending Decree No. 01/2014/NĐ-CP on foreign investors purchasing shares in credit institutions.

Financial analysts believe that increasing the foreign ownership limit will provide new opportunities for HDBank, MB, and VPBank to raise strategic capital, support robust asset growth, and maintain capital adequacy ratios amid growing demand for medium- and long-term funding. This move is expected to facilitate strategic investment, driving significant asset growth.

Additionally, LPBank recently announced an extraordinary shareholders’ meeting in 2025 to propose increasing the foreign ownership limit from 5% to 30%. This aims to attract foreign capital, support mid- to long-term development strategies, enhance transparency and financial capacity, and facilitate digital transformation and network expansion.

Foreign ownership limits are not just technical data but directly impact the ability to attract foreign capital. Banks with higher foreign ownership caps are more likely to attract international investors, enabling M&A deals and partnerships with global strategic partners.

Dr. Nguyen Quoc Hung, Secretary-General of the Vietnam Banks Association, notes that foreign investor participation in recent years has brought positive changes in finance, technology, and management, aligning Vietnamese banks more closely with international standards.

Dr. Hung believes that increasing foreign ownership limits is essential for Vietnamese banks to attract additional foreign capital and strengthen their financial capabilities.