The Bank for Investment and Development of Vietnam (BIDV) will team up with other local key economic corporations to develop into the nation’s largest economic group with assets of some ten billion dollar, said the bank’s general director Tran Bac Ha during the meeting with the representatives of 27 local leading corporations on March 22.
That will be an industry-construction-banking group, the first of its kind in Vietnam, like that in South Korea, Ha said.
The group will comprise of two parties: BIDV and other top Vietnamese key corporations such as Song Da Corp, Vietnam Shipbuilding Industry Corp. (Vinashin) and Electricity of Vietnam (EVN), he revealed.
Under the plan, these corporations will buy BIDV shares and become the bank’s strategic shareholders and vice versa.
BIDV will directly carry out privatization without issuing bonds to raise capital and by then the State-owned stake will be reduced to 30-35 per cent.
The cooperation between the bank and corporations will help utilize their advantages, which can generate combined strength for the group and improve the competitiveness of Vietnamese firms, Ha said.
The proposal will be sent to the government for approval within this year, he said.
The group established by BIDV and corporations will be one of the country’s eight economic groups set to be established this year, showing determination to boost economic development as well as the quality of development in the coming time.
To date, a number of other groups have received approval to form from the Government, including The Vietnam Coal and Mineral Industry Group (VCMIG), Vietnam Posts and Telecoms Group (VNPT Group), Garment and Textile Group (VGTG).
Vietnam Law, Young People
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