Illustrative image (Photo: VNA) Hanoi (VNS/VNA) — Vietnam’s equity market may witness big mergerand acquisition (M&A) deals in 2021 as local banks are trying to lureforeign capital on the country’s participation in international trade deals.
Vietnamese banks, especially small-cap ones, are targeting more foreign capitalto improve their performances, financial expert Huynh Trung Minh said.
However, the global markets have been hit by the COVID-19 pandemic, so it isdifficult for foreign investors to hunt Vietnamese banking shares at themoment, he said, cited by tinnhanhchungkhoan.vn.
So the banks lock their foreign ownership ratios to wait for the opportunitiesto come and keep their shares from the market volatility.
Among those banks making the move was the Vietnam Technological and CommercialJoint Stock Bank (Techcombank), which capped its foreign capital ratio at 22.5percent.
HCM City Development Joint Stock Commercial Bank (HDBank) also decided to curbforeign investors’ ownership limit to 21.5 percent from 30 percent in order toattract potential buyers.
Vietnam Prosperity Joint Stock Commercial Bank also cut the foreign ownershiplimit by 7.77 percent to 15 percent.
Among others, VietCapital Bank and NamA Bank are discussing similar ideas withshareholders.
Vietnamese banks, especially small-cap ones, are targeting more foreign capitalto improve their performances, financial expert Huynh Trung Minh said.
However, the global markets have been hit by the COVID-19 pandemic, so it isdifficult for foreign investors to hunt Vietnamese banking shares at themoment, he said, cited by tinnhanhchungkhoan.vn.
So the banks lock their foreign ownership ratios to wait for the opportunitiesto come and keep their shares from the market volatility.
Among those banks making the move was the Vietnam Technological and CommercialJoint Stock Bank (Techcombank), which capped its foreign capital ratio at 22.5percent.
HCM City Development Joint Stock Commercial Bank (HDBank) also decided to curbforeign investors’ ownership limit to 21.5 percent from 30 percent in order toattract potential buyers.
Vietnam Prosperity Joint Stock Commercial Bank also cut the foreign ownershiplimit by 7.77 percent to 15 percent.
Among others, VietCapital Bank and NamA Bank are discussing similar ideas withshareholders.
Techcombank shares (HoSE: TCB) have gained as much as 32.6 percent since July30 to touch the six-month high of around 24,000 VND apiece.
HDBank shares (HoSE: HDB) and VPBank shares (HoSE: VPB) have respectively increasedby as much as 7.7 percent and 29 percent in the same time.
According to bank officials, the banks will not sell their shares on the marketat any cost and they will select the buyers carefully.
Under Decree 01/2014/ND-CP, a foreign investor cannot own more than 20 percentof a Vietnamese financial institution and the total ownership among all foreigninvestors cannot exceed 30 percent.
Some Vietnamese banks have completed selling stakes to foreign buyers but manyof them still have room to welcome overseas investors.
On the other hand, the European Union-Vietnam Free Trade Agreement (EVFTA) mayfacilitate European financial firms to penetrate Vietnamese market. One of thekey things under the trade pact is European investors may increase their ownershipratios to maximum 49 percent in two Vietnamese banks.
Those beneficial banks will not include the top four State-controlled banks –Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), JointStock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock CommercialBank for Investment and Development of Vietnam (BIDV), and Agribank.
That rule now puts private-equity banks, including VPBank, Techcombank, AsiaCommercial Joint Stock Bank (ACB) and Vietnam International Joint StockCommercial Bank (VIB), at the centre of attention, according to VietnamInternational Securities Co./.
HDBank shares (HoSE: HDB) and VPBank shares (HoSE: VPB) have respectively increasedby as much as 7.7 percent and 29 percent in the same time.
According to bank officials, the banks will not sell their shares on the marketat any cost and they will select the buyers carefully.
Under Decree 01/2014/ND-CP, a foreign investor cannot own more than 20 percentof a Vietnamese financial institution and the total ownership among all foreigninvestors cannot exceed 30 percent.
Some Vietnamese banks have completed selling stakes to foreign buyers but manyof them still have room to welcome overseas investors.
On the other hand, the European Union-Vietnam Free Trade Agreement (EVFTA) mayfacilitate European financial firms to penetrate Vietnamese market. One of thekey things under the trade pact is European investors may increase their ownershipratios to maximum 49 percent in two Vietnamese banks.
Those beneficial banks will not include the top four State-controlled banks –Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), JointStock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock CommercialBank for Investment and Development of Vietnam (BIDV), and Agribank.
That rule now puts private-equity banks, including VPBank, Techcombank, AsiaCommercial Joint Stock Bank (ACB) and Vietnam International Joint StockCommercial Bank (VIB), at the centre of attention, according to VietnamInternational Securities Co./.
VNA
