Purchase likely to have been made to allow bank to become involved in consumer lending, as per an upcoming Circular.
On June 3 the Governor of the State Bank of Vietnam (SBV) signed Decision No. 1108/QD-NHNN agreeing to Techcombank purchasing the Vinachem Finance Company, under the Vietnam National Chemical Group, and changing its legal form from a joint stock company to a single member limited company, with Techcombank holding all charter capital.
The move may have been made in preparation for the implementation of a draft Circular that was completed last September but has yet to be approved and issued, which states that if a commercial bank wishes to be involved in consumer lending it must open a finance company.
Other banks have taken similar steps, such as HDBank acquiring Société Générale Viet Finance, VPBank taking over the Vinacomin Finance Company, and the Maritime Bank purchasing the Vietnam Textile and Garment Finance Company.