HCM CITY (Biz Hub) — The merger between the Mekong Housing Bank and the Bank for Investment and Development of Vietnam was completed yesterday.

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

"The merger especially helps improve BIDV's capacity to provide products and services for agriculture and rural development in the Cuu Long (Mekong) Delta, which used to be the strong point of MHB."

It would strengthen BIDV's performance, help maintain its leading position in Viet Nam and make it ready for competition with regional banks, he said. Ha said each MHB share got one share in the new entity.

MHB's chartered capital was VND3.369 trillion (US$156 million) and BIDV's was VND28.112 trillion, with the Government owning respectively around 91 and 96 per cent in them.

BIDV now has a capital of VND34.173 trillion ($1.63 billion) and assets of almost VND700 trillion ($33.33 billion) and a network of around 1,000 branches and transaction offices. The bank was considering taking on board a strategic foreign investor, Ha added. — VNS