In a landmark transaction last week, a credit institution was sold as a corporate entity in Vietnam with approval from the State Bank of Vietnam.

The transaction is special as it breaks from the usual path of an entity being acquired or merged by asset transfer.

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), a leading private bank in Vietnam, is now the sole owner of Societe Generade's credit consumer finance subsidiary in Vietnam, Societe Generade Viet Finance Co Ltd (SGVF).

Gide, a premier international law firm, advised Societe Generade on the sale of its wholly-owned Vietnamese consumer finance subsidiary.

The finance company was one of the first and largest foreign-invested finance companies in Vietnam, licensed in 2007.

This transaction was implemented against the current trend of consolidation and restructuring of the banking sector in Vietnam, and opens the way for other transactions to be structured in a similar manner.-VNA