VIỆT NAM’S FINANCIAL FIRMS HEAT UP WITH NEW WAVE OF M&A ACTIVITY

The movement has intensified during the 2025 annual general meeting (AGM) season.

An investor performs a transaction at a securities firm trading floor in Hà Nội. VNA/VNS Photo

HÀ NỘI — A new wave of mergers and acquisitions (M&A) is unfolding in Việt Nam’s financial sector, as commercial banks and securities firms accelerate their push into investment banking and asset management.

The movement has intensified during the 2025 annual general meeting season.

Among the most high-profile developments is Sacombank’s move to invest up to VNĐ1.5 trillion (US$57.8 million) in acquiring a controlling stake of over 50 per cent in a securities company. The bank has not disclosed the specific target but has made clear that it seeks a firm with a proven track record, marked by transparent financial reporting, sound asset quality, a robust investor base, and effective risk and operational management systems.

Sacombank has ruled out the possibility of reacquiring SBS Securities JSC, a company it separated from over a decade ago as part of a broader restructuring plan in 2011.

Despite the speculation around SBS’s potential return to the fold, the bank confirmed that it is not under consideration. This decision reflects Sacombank’s determination to find a partner that aligns with its long-term digitalisation and capital market integration strategy.

Another major player joining the acquisition race is Maritime Commercial Joint Stock Bank (MSB).

The bank has secured shareholder consent to acquire either a securities firm or a fund management company, aiming to establish the target as a subsidiary within this year. MSB is particularly focused on companies with charter capital between VNĐ300 and 500 billion.

It also plans to inject additional capital into the acquired firm post-deal, further boosting its competitiveness in the rapidly evolving financial services sector.

SeABank is also revisiting a deal that had been delayed due to unfavourable market conditions in 2024. The lender plans to proceed with its proposed 100 per cent acquisition of Asean Securities Corporation, after pausing the transaction during a period of low market liquidity and declining investor sentiment.

With signs of stability returning to the market this year, SeABank is prepared to finalise the deal, which will significantly broaden its scope in the capital market.

The surge in acquisition activity is not confined to banks.

DNSE Securities has revealed its ambition to expand its financial services ecosystem. The company plans to invest in a fund management company and launch covered warrant trading.

Meanwhile, Thành Công Securities is planning a corporate restructuring by transferring its entire capital contribution in Thành Công Asset Management (TCAM) to its parent company, Saigon 3 Group.

The push for banks to acquire securities firms reflects a strategic expansion of their operations and the enhancement of their financial ecosystems.

With Việt Nam's stock market projected to attain emerging market status later this year, banks anticipate increased investment activity. Following years of consolidation, many banks now hold controlling stakes in securities firms, enabling them to perform investment banking functions effectively.

The focus is on acquiring smaller securities companies with lower market shares, which are easier to integrate. The market has seen these smaller firms flourish after being acquired, thanks to new capital influxes.

TCBS, VPBankS and MBS are examples of banks that have successfully leveraged their securities subsidiaries.

MSB's leadership emphasises the stock market's growing role as a vital funding channel for the economy. The market is expected to develop both qualitatively and quantitatively, with a target market capitalisation reaching 120 per cent of GDP by 2030.

The anticipated upgrade to emerging market status is expected to attract approximately $25 billion in foreign indirect investment annually.

The wealth management sector is gradually expanding in Việt Nam, with projections estimating the market's size will reach $600 billion by 2027.

This presents significant opportunities for banks seeking to diversify their financial ecosystems and enhance client offerings across various investment products, including bonds, stocks, mutual funds and insurance. This trend underscores the increasing interest among banks in establishing a complete financial ecosystem through the acquisition of securities and fund management companies. — BIZHUB/VNS

Source: VNS