Mekong Housing Bank Facts and Merger Update

Mekong Housing Bank was established in 1993 as a joint-stock bank to provide housing loans and other financial services to the public.

The bank's initial capital was 100 million Vietnamese dong, which was a significant amount at that time.

Mekong Housing Bank has undergone a merger with another bank, which has helped to expand its services and customer base.

The merger was completed in 2008, and since then, the bank has been operating under its new name and structure.

Curious to learn more? Check out: Banks and Banking Services

Mekong Housing Bank is a bank in Vietnam, and it was part of a share sale plan approved by Vietnam's Premier in 2011.

The bank was one of five state-owned commercial banks in Vietnam, along with the Vietnam Bank for Agriculture and Rural Development, the Vietnam Bank for Investment and Development, the Bank for Foreign Trade of Vietnam, and the Vietnam Industrial and Commercial Bank.

These five banks were undergoing a restructuring program, which included equitization on a pilot basis. Two of the banks, Vietcombank and Mekong Housing Bank, were in the process of equitization since 2005.

Recommended read: Bank for Investment and Development of Vietnam

Mekong Housing Bank's bad debt of VND 30,605 billion before the merger affected its share price, making it lower than the market price according to the NAV method.

Here are the five state-owned commercial banks in Vietnam mentioned in the article:

Mekong Housing Bank is headquartered in Vientiane, Laos, with a presence in several other countries in the region.

The bank operates in a dynamic and rapidly growing market, with a strong focus on providing financial services to low- and middle-income households.

Its main business is providing housing loans, which account for a significant portion of its total assets.

The bank's operations are designed to meet the needs of its customers, who are primarily individuals and small businesses.

Mekong Housing Bank has a strong commitment to social responsibility, with a focus on supporting community development and improving living standards.

BIDV now has a massive capital of VND34.173 trillion ($1.63 billion), which is a significant increase from its previous capital.

The merged entity retained the BIDV name, and its chairman, Tran Bac Ha, said the merger was part of the 2011-15 credit institution restructure plan announced by the Government.

MHB's chartered capital was VND3.369 trillion ($156 million), which is a tiny fraction of BIDV's capital, with the Government owning around 91 per cent of MHB's shares.

The NAICS code is a six-digit number that identifies a specific business or industry. It's used by the US Census Bureau to classify businesses for statistical purposes.

MEKONG HOUSING BANK has NAICS codes 522 and 52. These codes indicate that the bank operates in the finance and insurance sector.

NAICS codes are crucial for businesses to report their data accurately and to receive government contracts. They also help businesses to identify potential partners and competitors.

The NAICS code 522 specifically identifies banks and credit unions, while code 52 is a broader category that includes financial institutions, insurance carriers, and securities and commodity brokers.

Suggestion: Bank Code

BIDV will retain its name after merging with Mekong Housing Bank (MHB).

The merger is part of the Government's 2011-15 credit institution restructure plan.

The merged entity will have a capital of VND34.173 trillion ($1.63 billion) and assets of almost VND700 trillion ($33.33 billion).

BIDV's chairman Tran Bac Ha said the merger will improve its capacity to provide products and services for agriculture and rural development in the Cuu Long (Mekong) Delta.

MHB's chartered capital was VND3.369 trillion (US$156 million), which will be converted into shares in the new entity.

This will strengthen BIDV's performance and help maintain its leading position in Viet Nam.

The merger is expected to be completed in late May, with BIDV issuing 336.9 million shares to complete the deal.

MHB's 44 branches and 185 transaction offices in 35 provinces and cities will join BIDV's network of around 1,000 branches and transaction offices.

BIDV is considering taking on a strategic foreign investor, with chairman Ha shortlisting eight potential partners for negotiations.

The bank plans to sell a stake of up to 30 per cent to these investors in the longer term.