An overview of the current state of mergers and acquisition in Vietnam banking sector | |
| Author | Nguyen, Thi Thu Hien |
| Subject(s) | Consolidation and merger of corporations--Vietnam Banks and banking--Vietnam |
| Note | A project submitted in partial fulfillment of the requirements for the degree of Master of Engineering (Professional) in Finance, Banking and Information Management (VN), School of Management |
| Publisher | Asian Institute of Technology,| |
| Abstract | Merger & Acquisitions have been globally conducted worldwide, especially in the financial world, under the context of globalization trend, regulatory liberalization, technology innovation, and cross-border competition. M&A has been believed by academics and practitioners that it is the tool to restructure and expand the business. Though the M&A industry in Vietnam is still very much in the early development stage, the banking sector in Vietnam is generally the first sector to experience significant M&A activity and it has been seriously taken into account of the current 2015 restructuring banking system program launched by the Government in 2012. Motivated by the sophisticated of this research field so as the emerging M&A in banking industry in Vietnam, the author of this paper particularly discusses on bank M&A activities taken place in Vietnam.This paper is conducted in the traditional interpretive research method analyzing the specific case study, which is M&A in Vietnam banking sector. The case study is explained giving parameters for the case study methodology, case study rationale, and the data collection process. Observation and data analysis on the research subject have indicated that there is a lack of a separate law on M&A meaning M&A policy makers and practitioners of Vietnam require more time to experience and exercise the practice. The findings also address the progress of equitization progess in Vietnam is rather slow therefore it is assumed that the 2015 banking sector restructuring plan of the Government is relatively aggressive. Evidence also draws out that both acquirers and targets have struggled in choosing partners. One of many reasons is the valuation method and accounting system in Vietnam somehow does not meet the international standards i.e. producing inconsistent reported such as NPLs ratio. It is also observed that while the performance of the foreign acquirers are suggested for future research due to the current unavailable data, there is positive and obvious improvement among acquired targets. The implications of the findings suggest this study could be also replicated in other industries such as food & beverage, oil & gas, technology, utilities, health care etc. that have been drawn attentions of both domestic and foreign investors for these are potential industries of a domestic consumed oriented market of almost 90 mil population of which 70% are aged below 45. These future research shoud be carried out upon the combination of both financial and non-finacial indicators for unveiling a more complete and reliable performance of M&A practices in Vietnam. Such knowledge contributions would assist policy makers, banks, practitioners and shcolars for future considerations and studies in planning and applying effective strategies related to M&A, so as the author’s wish in conducting this research. |
| Year | 2013 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Anas, Yusra; |
| Examination Committee(s) | Bart, Amrit N.;Ng, Engwan; |