Prime Minister Nguyen Tan Dung approved the proposal put forward by the State Bank of Vietnam (SBV) for Thailand-based Siam Commercial Bank (SCB) to purchase Vinasiam Bank (VSB) and open a branch in Vietnam.

He appointed the SBV to handle the buyout procedures.

Founded in 1995, Vinasiam Bank is a joint-venture owned by three shareholders: the Vietnam Bank for Agriculture and Rural Development (Agribank), SCB and Thailand’s Charoen Pokphand Group (CP).

The acquisition is expected to revamp the VSB, which has not been operating effectively and failed to provide the required charter capital.-VNA