Vietnam Banking M&A Enter a New Strategic Phase in 2026

Banking mergers and acquisitions (M&A) in Vietnam are at a crucial turning point. While the sector has experienced steady consolidation over the last decade, 2026 is expected to bring a new wave of strategic M&A activity, driven by regulatory reforms, increased foreign participation, and the launch of Vietnam’s International Financial Center (IFC), all supported by guidance from the State Bank of Vietnam (SBV) and national policies.

A Shift from Restructuring to Strategic Expansion

Historically, banking M&A in Vietnam centered on maintaining systemic stability and addressing weak institutions. Recent mandatory transfers such as Vietcombank's acquisition of Vietnam Construction Bank (CBBank), MB's takeover of Ocean Bank, GPBank's transfer to VPBank, and DongA Bank's transition to HDBank... SBV supervisory priorities drove these actions to uphold depositor confidence and financial stability.

However, the landscape is changing.

As balance sheets strengthen and non-performing loan ratios improve across the sector, banks are now pursuing M&A not as crisis intervention but as strategic tools for growth, innovation, and international integration.

Foreign Ownership Liberalization: A Catalyst for M&A

A key factor driving this new wave of M&A activity is the gradual easing of foreign ownership restrictions. According to amended regulations in Decree No. 69/2025/ND-CP, foreign ownership limits at banks like MB, HDBank, and VPBank have been increased to 49%, indicating a regulatory move toward more openness.

This adjustment supports SBV’s broader goals to attract strategic foreign capital, promote strong asset growth, and enhance capital adequacy amid rising demand for medium- and long-term funding. Banks with higher foreign ownership limits are better positioned to build strategic partnerships, expand their services, and compete regionally.

Meanwhile, institutions like LPBank are seeking approval to increase foreign ownership from 5% to 30%, demonstrating the growing market demand for international capital to support digital transformation, network expansion, and governance modernization.

Transparency, Governance, and Market Positioning

SBV emphasized that Vietnamese banks seeking foreign capital must adhere to international standards of financial reporting, governance, and risk management. Enhanced transparency builds investor confidence and broadens access to global capital markets. This emphasis also applies to stock exchange listing, which is widely regarded as a significant advantage for attracting long-term foreign investors.

Institutions like SHB Bank have publicly shared strategies to attract foreign partners with aligned visions, aiming for cooperation that goes beyond one-time transactions and encourages long-term operational synergies and strategic value for both domestic banks and international investors.

The IFC: A New Strategic Pillar

A recent transformative development in Vietnam’s financial landscape is the official establishment of the Vietnam International Financial Center (IFC), a strategic initiative aimed at cementing Vietnam’s position as a global financial hub. The IFC will operate under a “one center, two destinations” model in Ho Chi Minh City and Da Nang, supported by a comprehensive legal and institutional framework. 

The government has enacted important legal instruments, including Decision 2755/QD-TTg, to establish an Executive Council chaired by the Deputy Prime Minister and composed of senior policymakers, such as the Governor of SBV. This council will oversee strategic planning, policy development, and operational coordination between the two IFC locations.  

The establishment of the Vietnam IFC demonstrates Vietnam’s commitment to deeper financial integration, a more transparent investment environment, and stronger connections with global capital markets. It is expected to mobilize substantial capital, support financial innovation, and improve competitiveness factors that directly boost the banking sector’s M&A potential.

Analysts estimate that the Ho Chi Minh City component alone could attract up to $50 billion in investments during its first three years, further increasing capital flows and financial connections.

Macro Policy Supports Market Integration

The IFC initiative complements other structural reforms aimed at strengthening Vietnam’s financial markets and economic integration. These include ongoing improvements in capital market depth, technological infrastructure for digital finance, and regulatory updates to match global standards. Vietnam’s strategic vision also sees the IFC as a platform to support cross-border transactions, financial innovation (including fintech and digital assets), and advanced investment products, all of which help create a more dynamic environment for banking M&A.  

Additionally, SBV continues to improve monetary policy frameworks to promote growth while maintaining stability. Better foreign exchange management, enhanced credit risk monitoring, and targeted support for capital adequacy all help build a more resilient banking sector capable of handling complex strategic transactions.

M&A as a Growth Lever in a New Financial Era

Taken together, these developments place Vietnam’s banking sector at the center of a new and more strategic wave of M&A activity expected to gather pace in 2026. No longer driven primarily by defensive consolidation, M&A is increasingly being used as a forward-looking instrument to attract foreign capital and managerial expertise, expand customer bases and service capabilities, and strengthen governance and risk management frameworks. At the same time, the emergence of Vietnam’s International Financial Center provides a broader platform for banks to integrate more deeply with global financial markets and enhance their regional and international competitiveness. Therefore, Business information and Ratings are becoming increasingly important.

For policymakers and industry leaders, the main challenge ahead is maintaining regulatory momentum while ensuring that governance standards keep up with market ambitions.

A supportive yet disciplined policy environment will be crucial to enable M&A transactions to create lasting strategic value, helping to reshape Vietnam’s banking system into a more integrated, resilient, and respected part of the global financial ecosystem.