On 17 Oct 2024, the State Bank of Vietnam (SBV) issued a decision to mandatory transfer the 100% State-owned Construction Bank (CB) to Vietcombank (VCB) in accordance with the Plan approved by the Government.

1. Mandatory transfer is one of the options to restructure specially controlled banks as stipulated in the Law on Credit Institutions. The mandatory transfer of CB to VCB (the Mandatory Transfer) is carried out in accordance with current laws and approved by competent authorities with the goal of gradually restoring normal operations, overcoming weaknesses, gradually turning CB into a bank with a healthy financial situation, ensuring the ability to operate continuously. VCB will have the opportunities to expand its business scale, customer base, network; has discretion to acquire, maintain CB as a subsidiary bank or sell CB to new investors during and after the end of the Mandatory Transfer Plan.
2. After the Mandatory Transfer, CB will operate as a one-member limited liability bank 100% owned by VCB and be allowed to carry out banking activities according to regulations. All legitimate rights of depositors, rights and obligations of customers at CB continue to be guaranteed in accordance with agreements and the law. CB is an independent legal entity, and its financial statement is not consolidated into VCB’s consolidated financial statements.
3. VCB exercises the rights of the owner to CB according to regulations. VCB does not inject capital to CB during the period when CB has accumulated losses; VCB participates in the management, operation and implementation of support measures in the Mandatory Transfer Plan approved by the competent authorities.
4. VCB and CB are entitled to apply support measures according to the Law on Credit Institutions and relevant legal provisions approved by competent authorities.
5. VCB is a leading bank in Vietnam, with strong financial position. The mandatory transfer of CB to VCB is expected to help restore CB, while ensuring the legitimate rights of shareholders and employees of VCB; demonstrating the trust of the Government and the SBV in the prestige, capacity and experience of VCB; affirming the role of VCB in implementing the policy of the Government and the State Bank, thereby helping to stabilize the financial and monetary markets, and enhancing the confidence of investors and the public in the banking system.

About VCB

Being the most prestigious bank in Vietnam with a history of over 60 years and having prior experience in restructuring and handling weak credit institutions, VCB has been making important contributions to the country's socio-economic development. Since its establishment, VCB has increasingly affirmed its No. 1 position in Vietnam in terms of quality, efficiency and sustainable development. With a market capitalization of over VND 500 trillion, VCB is currently the largest listed enterprise in Vietnam and one of the 100 largest listed banks globally. VCB has been leading the banking industry in terms of contribution to the state budget, participation in implementing social security programs, and contributions to the community./.

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