Merger or consolidation of banks is the present tendency the main objective to improve competitiveness. Merger or consolidation of banks offer greater value than the banks itself stand alone as well as benefit by achieving economies of scale, increasing the prestige brands, reduce costs and exploit maximum advantage of business stakeholders, develop the customer base, distribution network, ...

Therefore, the trend of merger, consolidation bank can occur between large banks, and between large banks and small banks, small banks with each other.

The system of legal documents related to merger activities, consolidation of enterprises today are relatively uniform and complete as the Enterprise Law, Investment Law, Competition Law, Securities Law. The banking sector also has the Law on State Bank of Vietnam, Law on Credit Institutions.

On the basis of the relevant legal documents, on 11/02/2011 SBV issued Circular No. 04/2010/TT-NHNN provides for the merger, consolidation and acquisition of credit institutions to facilitate activities beneficial to the merger, consolidation, acquisition of credit institutions. In addition, the State Bank is willing technical assistance to the banks wishing to merge, merge.

(VnEconomy)