The compulsory transfer of four underperforming Vietnamese banks to stronger commercial lenders has been met with some skepticism at an April 11 workshop on bank restructuring in Hanoi. This comes in the context of several of the four underperforming banks being rebranded and relaunched as digital banks, VN Express is reporting.
Key observations from experts involved:
- Nguyen Xuan Thanh, public policy lecturer at Fulbright University Vietnam:
– said banks see taking over underperforming banks as a “political task”.
– Described the transfers as largely cosmetic.
– Suggested Vietnam was “buying time” rather than resolving fundamental weaknesses.
– Emphasised that the transferred banks’ value lies in their operating licences (which are used to open subsidiary digital banks).
- Truong Thanh Duc, Director of Anvi Law Firm:
– Expressed concern that the recent moves mirrored the past “0 VND” bank takeovers, which failed to deliver lasting results.
– Warned against wasting resources on repeated cycles of rescue without a path to sustainable operations.
– Proposed a future roadmap that includes mergers, re-equitisation, or even managed bankruptcies rather than indefinite support. - Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets:
– Questioned the financial transparency of the restructuring process.
– Pointed out that without consolidated financial reporting and clear accountability, parent banks might shift bad debts to the new digital subsidiaries.
– Urged the government to ensure strict oversight to prevent systemic risks from being buried under new branding. - Nguyen Quoc Tuan, Strategic Project Director at HDBank (which took over DongABank):
– Stated that outright dissolution had been considered but was rejected due to concerns about financial stability and public confidence.
Vietnam’s forced bank transfers represent a new phase in its long campaign to resolve weak lenders. But unless the state or strategic investors contribute actual capital and enforce governance reform, these transfers risk being superficial rather than a. Experts agree that regulatory discipline, transparency, and long-term investment—not political mandates—are essential for real restructuring.
See also: Banking in Vietnam: Industry Overview