Vietnam has emerged largely unscathed from the global pandemic. Consumption by an emerging middle class and a trade-driven economy continue to propel economic growth forward, projected at 6.7% in 2021 by the World Bank. Financial service providers—the financial institutions group (FIG) sector—such as commercial banks, consumer finance companies, fintech/payment service companies and insurance providers remain at the forefront of driving economic growth and development.
We anticipate a robust year for M&A activity in the FIG sector. In particular, after a lengthy period of being eased into Basel II compliance, Vietnamese commercial banks must now report capital adequacy and other prudential ratios to the State Bank of Vietnam in accordance with Basel II standards under Circular 22 dated 15 November, 2019, effective 1 January, 2020. The more stringent Basel II compliance will continue to fuel Vietnamese commercial banks' insatiable demand to identify capital sources.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
