Merger and acquisition in banking system case of vietnam,

STATE BANK OF VIETNAM BANKING ACADEMY Foreign Language Faculty GRADUATION THESIS MERGER AND ACQUISITION IN BANKING SYSTEM CASE OF VIETNAM Lecturer: Ngo Tung Anh (MA, MBA) Student: Nguyen Thi An Class: K14-ATCB Student Code: 14A7510001 20th May 2015 GRADUATION THESIS DECLARATION I declare that this thesis is the product of my own work and has not been previously submitted for degree or examination in any university Signature……………………………… Date…………………………………… NGUYEN THI AN – ATCB K14 GRADUATION THESIS ACKNOWLEGDEMENT I would like to forward my heartfelt respect and the deepest of my appreciation to my supervisor, Mr Ngo Tung Anh (MA, MBA) for his patience, enthusiasm, and constructive advice throughout my bachelor study and research Not only did he help me with invaluable suggestions, he also supported me to select useful material sources, concentrate on describing and analyzing important points related to the topic I could not have imagined having a better supervisor and mentor for my study I also own a great deal of gratitude to all bank staffs at Techcombank – Hoan Kiem Branch for the three-month internship, in which I experienced the professional working environment and gained a considerable amount of practical knowledge Last but not least I would like to send my sincere thanks to all teachers at the Banking Academy especially to teachers working at the Foreign Language Faculty, who have equipped me with a variety of knowledge An honorable mention goes to my family and friends who has supported me wholeheartedly Because of time constraint and limited capacity of the writer, this thesis certainly is not fee from flaws Therefore, it is my hope that lecturers and readers will sympathize and offer further contribution to it NGUYEN THI AN – ATCB K14 GRADUATION THESIS CONTENTS PART A: INRODUCTION1 Rationale to the research Aim of the study Scope of the study Methodology of the study Structural organization of the thesis PART B: DEVELOPMENT CHAPTER 1: THEORETICAL FRAMEWORK ABOUT BANK M&A 1.1 Review of Previous Work and Books 1.2 Definition of bank M&A 1.2.1 Definition of commercial banks 1.2.2 “M&A” definition 1.2.3 Definition and classification of bank M&A 1.3 Motivations, principles and conditions for bank M&A 12 1.3.1 Motivations for bank M&A 12 1.3.2 Motivations, principles and conditions for bank M&A 14 1.3.3 Conditions for bank M&A 15 1.4 Bank M&A process 16 1.4.1 Parties involved in the process 16 1.4.2 Bank M&A process 16 1.5 Summary 18 NGUYEN THI AN – ATCB K14 GRADUATION THESIS CHAPTER 2: THE SITUATION OF BANK M&A IN VIETNAM 19 2.1 Overview of the banking system in Vietnam 19 2.2 The reality of M&A activity in banking sector in Vietnam 23 2.2.1 Bank M&A activity before 2008 23 2.2.2 Bank M&A activity after 2008 period and the involvement of foreign banks in Vietnam 25 2.2.3 Some banks M&A deals in Vietnam from 2011 to 2014 28 a SCB – Vietnam Tin Nghia – FICOMBANK 28 b SHB- HABUBANK 34 c PetroVietnam Finance Corporation (PVFC) – Joint-Stock commercial Western Bank 38 2.2.4 The intension of M&A activities in 2015 43 2.3 Conclusion 44 CHAPTER 3: RECOMMENDATION TO ENHANCE BANK M&A IN VIETNAM 45 3.1 Recommendation for State Bank 45 3.1.1 Implementing of restructuring the banking system in Vietnam and orienting M&A activity 45 3.1.2 Completing the legal framework to support banking operations 45 3.1.3 Enhancing supervision capabilities of the State Bank 46 3.1.4 Accelerating the process of international integration in the banking sector 47 3.2 Recommendation for Commercial Banks 47 3.2.1 Increasing financial capacity 47 NGUYEN THI AN – ATCB K14 GRADUATION THESIS 3.2.2 Developing products and banking services 48 3.2.3 Improving the quality of human resources 48 3.2.4 Constructing and developing brand 49 3.2.5 Strengthening the association between domestic banks 49 3.3 Summary 50 PART C: SUMMARY 51 Recapitulations and Concluding Remarks 51 Implications 51 Limitations of the study and Suggestions for Further Study 52 NGUYEN THI AN – ATCB K14 GRADUATION THESIS LIST OF ABBREVIATIONS M&A Merger and Acquisition SBV State Bank of Vietnam VND Vietnam Dollar USD United State Dollar GDP Gross Domestic Product CPI Consumer Price Index NLP Non-Performing Loan HBB Hanoi Bulding Bank( Habubank) SHB Saigon Hanoi Bank BIDV Bank for Investment and Development of Vietnam MDB Mekong Development Commercial Bank PVFC Petro Vietnam Finance Corporation PG Bank Petrolimex Joint-Stock Commercial Bank WTO World Trade Organization CAR Capital Adequate Ratio ROA Return on Asset ROE Return on Equity NGUYEN THI AN – ATCB K14 GRADUATION THESIS LIST OF TABLES AND FIGURES Diagram 1.2: Structure of credit institution in Vietnam Figure 2.1: Total assets of some large banks in 2014 22 Table 2.1: Wholly Foreign Owned and Joint Venture Bank in Vietnam 23 Table2.2.1: Foreign banks as strategic shareholders of Vietnamese Commercial Bank 26 Table 2.2.3.1: Analysis of loan liquidity of SCB 29 Table 2.2.3.2: Liquidity risk of SCB 30 Table 2.2.3.3: Debts own Government and SBV of SCB 31 Table 2.2.3.4: Analysis of loan liquidity of Vietnam Tinnghia Bank 32 Table 2.2.3.5: Analysis of loan liquidity of HHB 35 Table 2.2.3.6: Analysis of loan liquidity of SHB 36 Table 2.2.3.8: Analysis of loan liquidity of Western Bank 40 Table 2.2.3.9: Analysis of loan liquidity of PVFC 41 Table 2.2.3.10: Consolidated balance sheet of PVcombank after M&A 42 NGUYEN THI AN – ATCB K14 GRADUATION THESIS PART A INRODUCTION Rationale to the research International economic integration is an inevitable trend of development by enabling countries to cooperate for mutual benefit In the banking sector, the process of integration motivates banks‟ the development, but it also creates a fierce competition In this context, mergers and acquisitions activities are seen as a solution because it brings many benefits such as strengthening position in the market, protecting and expanding market share, saving cost, maximizing assets of shareholders or avoiding bankruptcy Thus mergers and acquisitions in banking are measures that some countries have been using to create a stable financial system, prevent disruption and improve competitiveness Mergers and acquisitions have taken place in the world for a long and increasingly become powerful, especially in the financial crisis began in 2007, but this activity is quite new in Vietnam, especially in banking sector In Vietnam, in the context of international economic integration, especially after joining the WTO, Vietnam's banking sector has significantly transformed growth in both size and type of operation Besides these positive effects, it also poses challenges for Vietnam's banking system The Vietnam commercial banks, especially small banks due to limited capacity, have to face with many difficulties in the competition in term of lending capacity, technologies, products and services of modern banking During the recent financial crisis, Vietnam‟s economic has not been affected much by level of integration while commercial banks in Vietnam have revealed many weaknesses and riskiness that cause the lost faith of public Governance remains limitation leading to higher liquidity risk, scramble for NGUYEN THI AN – ATCB K14 GRADUATION THESIS mobilization, bad debt in real estate and stock Unlike other sectors, as the systematization of banking industry is very high, that one bank has problems will affect the whole system and thus will affect the economy Especially at the beginning of 2009, the first bank with 100% foreign capital officially operated in Vietnam with many barriers to be lifted under the WTO accession commitments This is really a challenge for domestic banks as foreign banks with large-scale, professional management, operating experience, modern technology, diversity of products and services are seeking to enter Vietnam market Turning back to Vietnam, the outstanding feature is a gradually complete market economy with GDP growth of 7% to 8% per year However, besides the tremendous achievements, in some recent years, Vietnam economy also shows a lot of difficulties and shortcomings In the field of banking sectors, we are coping with an increase in non-performing loans and illiquidity Consequently, restructuring the whole system is more urgent than ever Due to the recent economic picture and the status of banking system in our country the researcher has decided to choose this title for the graduation thesis: “Merger and acquisition in banking system – case of Vietnam” Objective Firstly, the thesis clarifies the concept of merger and takeover as well asthe implementation modalities of bank M&A Secondly, the content just mentions about basic information and analyses the trend objectively The thesis aims at providing fundamental knowledge about this activity, describing the picture of M&A in the banking sector in Vietnam recently and offering the prospects for the trend Finally, according to research results, the thesis offers solutions that help commercial joint stock banks of Vietnam to implement successfully merger and acquisition NGUYEN THI AN – ATCB K14 40 GRADUATION THESIS  The situation before the merger  Joint-Stock commercial Western Bank At the time of the merger, Westernbank is one of the smallest banks in the commercial banking system with charter capital of trillion, total assets in 2012 of just over 15 thousand billion decreasing more than trillion compared with the end of 2011 Outstanding loans were dedicated at VND 5.25 trillion, customer deposits was nearly VND 10.98 trillion However, after-tax profit in 2012 was only 42.6 billion accounting for only one third of that in 2011 Furthermore, the narrow operating network of Westernbank just covered only the western provinces and some areas in the middle of country Market share in the commercial banking system was very small, less than 1% System infrastructure was sketchy and products as well as services are poor coming along with the poor competitiveness Despite the low outstanding loan ratio, the proportion of bad debts in the loan structure of Western Bank located at relatively high levels and tended to rise sharply Specifically, these types of loans from group to group had intended to rise quite sharply in 2012, from 5.64% at the end of 2011 to 14.81% at the end of 2012 Among these loans, more than VND 209 billion was irrecoverable debt rising VND 187.5 billion compared with 2011, corresponding to an increase of 786% NGUYEN THI AN – ATCB K14 41 GRADUATION THESIS Table2.2.3.8: Analysis loans’ quality of Western Bank 31/12/2012 31/12/2011 (million dong) (million dong) 4,468,305.17 8,291,427.66 418,182.88 389,534.70 36,327.02 40,490.05 113,184.63 41,531.95 209,297.63 23,608.30 5,245,297.33 8,786,592.65 Eligible debts Notable debts Substandard debts Doubtful debts Irrecoverable debts (Source: http://finance.vietstock.vn – Notes of financial statement in 2012)  PetroVietnam Finance Corporation (PVFC) At the time of the merger, PVFC was also a major financial institution with a charter capital of VND trillion, deposits of 25 trillion, loans 39.7 trillion, and total assets at end 2012 were 88.1 trillion, falling more than trillion over the same period in 2011 Profit before tax in 2012 was 54.7 billion accounted for only one seventh compared to 2011 Meanwhile, bad debts have also increased sharply in 2012 leading to the share of loans in groups 2-5 rise by 11.76% higher than the level of 5.05% compared with the end of 2011 NGUYEN THI AN – ATCB K14 42 GRADUATION THESIS Table2.2.3.9: Analysis loans’ quality of PVFC 31/12/2012 31/12/2011 (million dong) (million dong) 35,051,646.63 42,711,656.86 2,748,882.92 1,240,579.95 522,357.53 245,035.89 398,270.67 171,190.19 1,003,887.98 616,611.24 39,725,045.72 44,985,074.12 Eligible debts Notable debts Substandard debts Doubtful debts Irrecoverable debts (Source: http://finance.vietstock.vn – Notes of financial statement in 2012) There were two notable items in credit operations PVFC which were the credits related to Vinashin and Vinalines loans Due to unfavorable fluctuations of the world shipping market, two customers fall into difficulties in payment of debts Outstanding loans (principal) at the moment of Vinashin groups on May 31, 2012 were 1,068 billion and that on Vinalines customer group were 1,745 billion About the performance, generally, compared with credit operations having similarity in scale and nature of operations, ROA and ROE of PVFC were quite low ROA of 0.62% was lower than average percentage of 1.19%, while ROE was 6.96% lower than the sector's ROE being 20.38%  Pvcombank after consolidation After the M&A transaction, Pvcombank was going into business with a charter capital of VND trillion and total assets of more than 100 trillion NGUYEN THI AN – ATCB K14 43 GRADUATION THESIS On the issue of bad debt, NPL ratio of PVFC and Westernbank was both high (the end of 2012, the NPL ratio of PVFC 4.5%, the NPL ratio was 6.84% at Westernbank), but NPL of Westernbank was not a big deal compared to the scale of PVcombank assets after consolidation and NPl of the new bank accounted for only 4.2% of total loans Meanwhile, PVFC will have more advantages than if converted into commercial banks, and here is the Balance Sheet of Pvcombank: Table2.2.3.10: Consolidated balance sheet of PVcombank after M&A (Source: http://finance.vietstock.vn – Notes of financial statement in 2012) Becoming a commercial bank, PVcomBank would provide a full range of products and services of a commercial bank: mobilizing private capital, NGUYEN THI AN – ATCB K14 44 GRADUATION THESIS payment services, array of retail banking services, arrange capital for prime projects The operating network would be exploited PVcomBank extensive with 102 outlets (1 headquarters, 30 branches and 67 transaction offices, saving banks) in the major provinces of the country on the basis of inheriting and developing the branches and transaction offices of PVFC and WestenBank 2.2.4 The intension of M&A activities in 2015 Continued restructuring plan starting in 2012, there have been many successful M&A deals Additionally, according to the SBV, in 2015, will be approximately M&A transactions which would be approved by authorities Therefore, not only the big banks but also the small banks are actively seeking M & A partner to survive  Recently, the Deputy Governor of the State Bank, Nguyen Phuoc Thanh, has revealed cases of the first M & A will be the merger of Southern Bank into Sacombank Then SBV also required many weak banks integrating with other major banks With the goal in 2015, the banking sector will have the second restructuring, consolidating small banks to form the large-scale banking system that meets international standards  Mekong Development Commercial Bank (MDB) is in the process of preparing to be merged into Maritime Commercial Bank of Vietnam (Maritime Bank) A source from the Mekong Bank (MDB) said the merger deal of this bank into Maritime Bank has been urgently completed Application for bank merger will be added contents consulting their shareholders at the upcoming congress  PGBank merged into Vietinbank On April 18, Annual Shareholders' Meeting of Petrolimex Joint Stock Commercial Bank (PGBank) provided important contents about the merger plan to merge PGBank into Vietinbank, with their goodwill and acceptance of basic principles to ensure benefits for the stakeholders According to the content of the statement of shareholders, PGBank retain organizational apparatus, field operations and brand PGBank Thus, PGBank NGUYEN THI AN – ATCB K14 45 GRADUATION THESIS will be a member under the control of VietinBank However, until the present, Vietinbank has not announced any information about the deal  In addition, BIDV will also carry out a bank merger, and the objects being merged may be MHB In conclusion, the policy of the central bank in promoting restructuring is crucial, including the M & A between the big banks together Hence the trend in the future is predicted that M & A in the financial sector –especially among commercial banks will be very exciting 2.3 Conclusion Chapter analyzes the operations of commercial banks in Vietnam in recent times and competitiveness of the banking sector Although Vietnam's commercial banks have been many efforts and achieved significant achievements but banks need to further enhance its operational capacity in the context of increasingly fierce competition if they want to survive It is also recognized the motivation of M&A of banks to take steps to prepare as this is an inevitable and necessary trend in the context of international economic integration NGUYEN THI AN – ATCB K14 46 GRADUATION THESIS CHAPTER 3: RECOMMENDATION TO ENHANCE BANK M&A IN VIETNAM This chapter brings the recommendation for Vietnamese authorities and commercial banks so that the bank M&A deals can happen successfully 3.1 Recommendation for State Bank 3.1.1 Implementing of restructuring the banking system in Vietnam and orienting M&A activity SBV has to draw a 10-year development plan for the whole banking system in order to orient the development and stabilize the system This plan will also support those who have intension of establishment of new banks or M&A There is a development strategy for banking sector so that the Central Bank can offers appropriate legal provisions to regulate and manage the banking operations Central Bank also needs to create favorable conditions for Vietnamese commercial banks to competitively operate under the market mechanism, motivate banks to grow and develop the deeply as well as widely SBV also ought to have some orientations to reduce the number of banks on the basis of restructuring such as merging banks into 5-10 banks and large financial institutions to become really strong banks having financial resources to compete with foreign banks State Bank of Vietnam not only manages the M&A as an administrative decisions but al so offer a number of provisions in the banking operations as the size of capital, human resources, technology, business strategy, capital adequacy, income structure and provisioning Meanwhile the stronger banks will survive and grow, the weaker banks noticed the voluntary merger is necessary in accordance with the requirements of the market thus forming new large banks to hold the system stability, competitiveness and gradually reach out to the world market 3.1.2 Completing the legal framework to support banking operations NGUYEN THI AN – ATCB K14 47 GRADUATION THESIS Central Bank might have to review and reconcile the whole of regulations and laws on monetary and banking activities with international commitments such as the Vietnam - the US Agreement and the WTO accession commitments Need to focus on field credit, investments, foreign exchange, capital mobilization and payment; regulations for the management and supervision of banking services; licensing and management of credit institutions to ensure compliance with international standards, in line with Vietnam conditions Moreover, issuing circulars which are seen as instructions for decrees already in force is essential Those amendments need to perform early to ensure the banking system operates in an environment of consistency and stability These amendments must take into account consistency with other provisions and issues may arise in the future as the derivatives, electronic banking, banking services across borders Eventually, State Bank is recommended to improve effectiveness of law enforcement in the field of monetary and banking activities, enhance the compliance with the laws of commercial banks in Vietnam 3.1.3 Enhancing supervision capabilities of the State Bank Firstly, on the basis of the existing State Bank Inspection, Central Bank may build modern monitoring system and efficiently to meet the development requirements of Vietnam banking system increasingly diversified and comply with the principles and standards international level on banking supervision Secondly, reformation of the current accounting in the banking system is requested and all banks are required to fully apply the international accounting standards, whereas, Central Bank need to improve independent auditing regulations for the bank to suit the reality in Vietnam and international practices Furthermore, enhancing management efficiency and strengthening risk management and building management system liquidity risk; market risk, interest rate, foreign exchange rates; credit risk are totally going along with strengthening the role and operational capacity of the Credit Information Center (CIC) to support the activities of commercial banks NGUYEN THI AN – ATCB K14 48 GRADUATION THESIS Finally, SBV continuously promotes international cooperation and participation in the treaty, international agreement on banking supervision and securing financial system as well as strengthens the exchange of information with the supervisory authorities of foreign banks 3.1.4 Accelerating the process of international integration in the banking sector SBV ought to allow foreign investors, especially banks with strength on financial, technology, reputation and management to buy shares, participate in management and operation of commercial banks in Vietnam They should actively involve in international economic integration in the banking sector with steps in line with the capabilities of Vietnam's banking system Joining the international treaties, regional forums relating to international monetary and banking is a current requirement As well as, development of bilateral or multilateral cooperation and coordination with the inspection agencies, financial supervision to detect, deter, prevent and treat risks across the region and globally might be completed by SBV 3.2 Recommendation for Commercial Bank 3.2.1 Increasing financial capacity Commercial banks must continue to upgrade their chartered capital and increasing its charter capital need to be tied to the project and reasonable disbursements For those banks which are too weak or unable to raise the capital, it is necessary to consider the M&A deal or consolidation in order to raise financial capacity and competitiveness and avoid bankruptcy For banks which are operating in efficiency may consider raising funds through foreign securities markets and expanding their market In operation, the bank should consider some of the most important criteria to ensure safety as the capital adequacy ratio, equity, affordability ratio (liquidity), lending and commercial guarantee limitation and limitation using short-term funds for medium or long-term loans NGUYEN THI AN – ATCB K14 49 GRADUATION THESIS For impaired loans, the banks, especially the State Bank needs to completely settle Reducing bad debt must be attached to the building control mechanisms, effective monitoring credit quality of banks 3.2.2 Developing products and banking services Firstly, improving credit quality associated with credit growth, prudent lending of securities, real estate and boosting manufacturing lending are expected to be done by banks Vietnamese commercial banks also needs to strengthen project evaluation capabilities lending, capital management capabilities Another recommendation is service development Traditional services as well as new services (such as automatic payments, discount, e-banking, factoring, credit cards, overdrafts, derivatives ) have to be ensured the quality, safety and simple procedures Then, banks must constantly explore customer needs to provide products and services to suit each customer in specific stages Each bank had better to have suitable marketing strategy to strengthen promotional activities as advertising and introduce products, services and utilities to customer to make them aware of and eager to use banking services 3.2.3 Improving the quality of human resources Improving the quality of human resources in the short and long term is a necessary solution currently Banks should have training programs which must be practical in order to improve, enhance professional skills of modern banking Meanwhile, Commercial banks in Vietnam had better attract and promote banking experts from qualified organizations or countries in the region and around the world to work in Vietnam Wage mechanism consistent with the level and capacity of staffs is one of the main factor to attract the talents The state-own commercial banks need to bravely apply incentive mechanisms based on the results of work The leaders, eventually, need to be trained in governance skills, supervision and inspection of bank operations and they have to have experiences and deep NGUYEN THI AN – ATCB K14 50 GRADUATION THESIS knowledge about risk management as well as forecasting, analyzing and problem solving Board of Directors and the Executive Board should have a clear business orientation and long-term strategic vision in accordance with economic-social development 3.2.4 Constructing and developing brand Banks should have a strategy of branding basically because this is the intangible assets and it makes difference between banks Vietnam's commercial banks focus on customer loyalty, familiarity in the transaction, and corporate culture to compete with foreign banks In addition, the branding must be associated with the quality and quantity of products and services, safety, security of transactions, transparence and efficiency in operations, service attitude, the handling of the situation and social responsibility of banks 3.2.5 Strengthening the association between domestic banks Competition is an essential element for the domestic banks to upgrade their operating capacity However, the competition needs to be wholesome and enable banks to jointly develop, not inhibit each other in the target of maintaining stably market share of for foreign banks  Banks should continue to strengthen the link by connecting the card payment system, co-sponsored lending  Some small banks need to study, take full advantage of financial support, technology from shareholders or foreign banks so that they achieve more financial strength, market consolidation, brand reinforcement and services expansion  Customer information should be explicit and assistance between banks is necessary so that risk management can be better  Banks should link together instead of competing in the race to raise interest rates to help raise capital operations of banks more stably Banking Association should promote the role of bridge between the banks NGUYEN THI AN – ATCB K14 51 GRADUATION THESIS A solution that banks around the world are carrying out in order to create associating power is bank M&A Commercial banks should take the necessary preparatory steps in the bank M&A, especially weak banks have no commercial viability Vietnamese commercial banks need to recognize exactly actual competitiveness and its potential development to consider a possible merger deal with another bank If there is a proactive, well-prepared plan and the match between the two partners, they will easily create effective resonance for both sides, stabilize and improve the competitiveness of the whole banking system in Vietnam 3.3 Conclusion According to operational status of Vietnam commercial banks currently, Chapter has raised some recommendations to enhance the operational capacity of the banks to improve competitiveness and create advantages for banks in mergers and acquisitions Thesis also recognized that the trend of mergers and acquisitions banking is inevitable in the context of international economic integration NGUYEN THI AN – ATCB K14 52 GRADUATION THESIS PART C: SUMMARY Recapitulations and Concluding Remarks The thesis shows the banks have been facing many difficulties, challenges and fierce competition during the integration Besides stronger banks, weak banks must be forced to be merged or acquired That is the crucial principle of the market economy Overall, banking system in Vietnam has experienced a bustling period of M & A activities Although the banks have to deal with the consequences after each M&A case, the banking system in general and banks in particular would gain more than lose However, we should also look at this issue from two sides that the initial effect of M & A is clear, but what needs to be resolved after M & A to be mindful In addition, since fully identifying the challenges, limitations on the macro management of the government as well as business activities of commercial banks, the thesis has made appropriate recommendations through macro solutions for Central Bank and micro solutions for commercial banks operating on the surface This innovation is necessary for banks to improve competitiveness Thesis also highlights the motivation of M&A is likely to happen due to the limited internal resources of commercial banks in Vietnam in comparison with the foreign banks which are growing and take lots of advantage in developing conditions Vietnam, consequently, is accelerating merger and acquisition activities in the banking sector, in an effort to reduce bad debt, which monetary regulators said has been a heavy burden on the country's economy The central bank said it will take measures to drastically deal with weak banks that have no chance of recovery Implications NGUYEN THI AN – ATCB K14 53 GRADUATION THESIS In addition to reforming its banking sector, Vietnam is attempting wider efforts to create an attractive business environment through such liberal reforms as the privatization of the state-sector and allowing for greater foreign investment in a range of sectors As its economy has begun to pick up, Vietnam has become an increasingly attractive investment destination for investor engaged in a variety of businesses such as manufacturing of garments of high-tech product The country also has a burgeoning consumer market, which retail businesses around the world are eager to take advantage of Limitations of the study and suggestions for further study During the implementation process of thesis, I has studied many documents, books, however, personal limited capacity, secret nature of M & A activity and limited time by no means incidentally coincides inevitable shortcomings If there are more opportunities, I will overcome the limitations of this thesis in the further studies NGUYEN THI AN – ATCB K14 GRADUATION THESIS LIST OF REFERENCES Law on Enterprises Law on Competition Law on Credit Institutions Slides of “Corparate M&A” subject collected from lecturers in Finance Department of Banking Academy finance.vietstock.vn sbv.gov.vn tradingecnomics.com Mergers and Acquisitions from A to Z – Andrew J Sherman&Milledge A.Hart, second edition Making M&A deals happen – Robert Stefanowski 10 The economics of money, banking and financial market – Miskin 11 Bank management and financial services - Peter Rose 12 Mergers and Acquisitions - Broc Romanek & Cynthia M.KrusCapstone Publishing, 2002 13 M&A Operations and Performance in Banking - Elena Beccalli, Pascal Frantz 2009 14 Mergers and acquisitions: The Path For Development of Vietnamese Enterprises - Nguyen Thi Ngoc Dung - Economic Faculty - University of East Asia 15 Modern Banking – Shelagh Heffeman NGUYEN THI AN – ATCB K14