The State Bank of Vietnam has recently approved in principle a merger between the Song Da Finance Company (SDFC) and the Military Commercial Joint Stock Bank (MBBank).
Hanoi (VNA)🐻 - The State Bank of Vietnam has recently approved in principle a merger between the Song Da Finance Company (SDFC) and the Military Commercial Joint Stock Bank (MBBank).
The move was made after a request in a shareholder meeting of the SDFC and MBBank in October this year and will result in a new finance subsidiary which specialises in consumer credit.
In October, MBBank said in a report that the new finance company - MB Finance Co Ltd (MB Finance) - was expected to have a charter capital of 500 billion VND (22.2 million USD).
In the first two years, MB Finance will be equipped with facilities, personnel and a distribution network to enter the consumption finance market. The new company will expand its market share and operations, and diversify its products and customers from the third year.
The ratio between SDFC shares and MBBank shares is currently 2.2:1.
Under the report, MBBank said that the merger with SDFC would help the State divest from the company and assist MBBank to expand its operations in the financial market.
According to a central bank's draft circular that is expected to be ratified soon, commercial banks are required to establish finance companies if they want to venture into consumer lending. Currently, commercial banks can provide loans to consumers, which is considered a high-risk venture.
Besides the merger of SDFC and MBBank, this year also saw a series of mergers and acquisitions (M&As) between banks and financial companies, which is in preparation for the new regulation.
Techcombank, Maritime Bank and VP Bank bought Vietnam Chemical Finance JSC (VCFC), Textile Finance JSC (TFC) and Vietnam Coal and Mineral Industries Financial Company, respectively, while the HCM City Housing Development Joint Stock Bank (HDBank) and the Japanese Credit Saison Company Ltd formed the HD Saison Finance, and SHB also merged with Viettel-Vinaconex Financial Company.
Commercial banks also expect to attract foreign investments in their newly-established finance companies thanks to the profitable domestic consumer finance market, according to DauTu (Investment) newspaper.
Representatives from the central bank said that they would restrict the establishment of new foreign finance companies in the next few years to support local commercial banks in their M&As with finance companies.
It means that foreign finance companies would have to join hands with finance companies owned by domestic commercial banks right at this stage if they want a presence in Vietnam's profitable consumer finance market.
Luu Trung Thai, Vice President of MBBank Board of Managers' standing committee, also quoted by DauTu as saying after completing a merger with SDFC, his bank would find foreign strategic partners to support the new finance company. MBBank might sell up to 49 percent of the finance company's stakes.-VNA
The Military Commercial Joint Stock Bank will complete its merger with Song Da Finance Company this year, the bank reported on its website after a shareholder meeting on October 6.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Illustrative image (Source: Internet)
