“SCB Shutters Multiple Branches Across Vietnam: A Strategic Move or Cause for Concern?”

The Saigon Commercial Joint Stock Bank (SCB) recently announced the closure of five transaction offices in Quang Ninh, Hanoi, Binh Thuan, Vinh Long, and Ho Chi Minh City.

Specifically, the five SCB transaction offices that closed between July 24 and July 31 are: Bãi Cháy Transaction Office – Quang Ninh Branch at Lot 9, Group 9, Area 9, Cai Dam, Bãi Cháy Ward, Ha Long City, Quang Ninh Province;

Chương Dương Transaction Office – Thang Long Branch at 319 Bo De House, Group 10, Bo De Ward, Long Bien District, Hanoi;

Mũi Né Transaction Office – Binh Thuan Branch at 345 Huynh Thuc Khang, Ward 5, Mũi Né, Phan Thiet City, Binh Thuan Province;

Nam Sai Gon Transaction Office – 20/10 Branch at 51 Phu Long Residential Area, Sub-area 8, Nguyen Huu Tho Street, Hamlet 5, Phuoc Kien Commune, Nha Be District, Ho Chi Minh City;

And Trà Ôn Transaction Office – Vinh Long Branch at 20/1 Dieu Bat Street, Area 3, Tra On Town, Tra On District, Vinh Long Province.

Prior to this, SCB had also terminated the operations of a series of transaction offices in various provinces and cities at the beginning of July.

According to the investigation report of the public security agency, as of October 2022 – before being placed under special control, SCB had one head office in Ho Chi Minh City, 50 branches, and 184 transaction offices nationwide.

Statistics show that since being placed under special control, SCB has closed approximately 100 transaction offices across the country, equivalent to half of the number of transaction offices the bank had previously.

SCB affirms that the closure of these transaction offices does not affect the operations of the bank. At the same time, all rights and transactions of customers are guaranteed to be fully implemented at other transaction points of SCB.

Nearly two years ago, on October 15, 2022, the State Bank of Vietnam announced its decision to place the Saigon Commercial Joint Stock Bank (SCB) under special control to stabilize the operations of the bank. The special control of a credit institution by the State Bank is a professional measure in accordance with the law to closely control and limit negative impacts on that credit institution and the system of credit institutions.

The State Bank has also selected and appointed experienced, capable, and professionally qualified officers from state-owned commercial banks (Vietcombank, BIDV, VietinBank, and Agribank) to participate in the management and administration of SCB.