Vietnamese banks remain attractive to foreign investors
Vietnamese banks are still attractive to foreign investors thanks to the country’s economy and strong resilience to unprecedented difficulties and challenges caused by the COVID-19 pandemic.
With Fitch Ratings raising the overall outlook for Việt Nam from "Stable" to "Positive", several Vietnamese banks have also been rated positive by the international rating agency. The rating has confirmed the strength of Vietnamese banks in adapting and maintaining stability even amid difficult times.
Despite the difficulties caused by the pandemic, Việt Nam is still considered a bright spot in the global economy. According to a recent analysis, Asian Development Bank assessed that Việt Nam's economy would grow strongly this year at 6.7 per cent and 7 per cent in 2022 despite the resurgence of COVID-19.
Many Vietnamese banks have also become more active in looking for foreign partners with an aim to realise their set goals and strategies.
VPBank in April signed an agreement to sell a 49 per cent stake in FE Credit to Japan’s Sumitomo Mitsui Finance Group (SMFG) in a transaction that values the non-bank lender at US$2.8 billion.
Through this transaction, FE Credit is expected to receive support in capital resources, management capacity and experience in the consumer finance sector in Asia from SMBC Group, especially SMBCCF - a leading consumer finance company in the Japanese market.
At the same time, this transaction will add a large amount of capital to VPBank, contributing to enhancing the bank's financial potential to capture new investment opportunities in the market.
At SHB, to find and select foreign investors who can support and bring the best benefits to the bank as well as its shareholders and customers, the SHB’s general meeting of shareholders recently approved fixing the foreign ownership rate of 10 per cent to find and select strategic partners. The bank also approved the ownership ratio of foreign strategic investors at the bank to be not more than 20 per cent of charter capital.
Nguyễn Văn Lê, General Director of SHB, said there were now several financial groups, banks and large investment funds in the world that wanted to become investors in SHB.
SHB also planned to issue international bonds with a total value of $500 million with a term of 3-5 years. According to Lê, for shareholders, the issuance of bonds to the international market not only increases profit margins and adds value to shareholders through the pidend plan, but also contributes to improving the value of each shareholder in the long run. — VNS
Related News
Investors play a key role in developing the industrial park system
10:38 | 22/04/2024 Headlines
Vietnamese stocks on FTSE Russell waiting list for upgrading
10:41 | 04/04/2024 Finance
Shareholders expect the shareholder meeting season
10:20 | 18/03/2024 Headlines
The Minister of Finance chaired the Vietnam - Korea Financial Investment Promotion Conference
10:19 | 09/03/2024 Finance
Latest News
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
More News
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Ensure savings and prevent losses in disbursement of public investment
10:24 | 18/04/2024 Finance
Your care
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance