Vietnam's State Bank Directs VPBank to Acquire GPBank in Mandatory Transfer

The State Bank of Vietnam directed VPBank to acquire Global Petro Bank, known as GPBank, through a mandatory transfer announced on 17 January 2025. GPBank, one of four weak banks that Vietnamese authorities have kept under special supervisory control, will become a wholly owned subsidiary of VPBank as a result of the transaction. The move forms part of Vietnam's banking sector restructuring programme.

GPBank has operated under special control by the State Bank for a number of years. Under the mandatory transfer mechanism, the State Bank directs a healthy institution to absorb a troubled one.

TERMS OF THE TRANSFER

Under the terms of the transfer, VPBank has the option to retain GPBank as an operating subsidiary or to divest it after completing a rehabilitation process.

VPBank said it would inject capital into GPBank, capped at 20% of its own charter capital, and share its expertise to support GPBank's restructuring.

The transfer to VPBank's ownership removes GPBank from direct State Bank stewardship, shifting the responsibility for its turnaround to private sector management under regulatory oversight.

PARALLEL TRANSFER OF DONGA BANK

The VPBank and GPBank transaction was announced simultaneously with a parallel mandatory transfer directing HDBank to acquire Dong A Commercial Joint Stock Bank, the two deals forming part of the Vietnamese government's declared objective of resolving the four banks that had been identified as requiring special measures.