Banks undergo major executive shake-up amid restructuring drive

Banks undergo major executive shake-up amid restructuring drive

Vietnamese banks are accelerating their restructuring efforts to strengthen competitiveness in a challenging economic climate as a wave of executive changes have been sweeping through the industry as lenders realign their leadership teams for sustainable growth through long-term strategies.

In the latest move, Sacombank's Board of Directors accepted CEO Nguyen Duc Thach Diem's resignation on May 22, effective from May 27. While she retains her position as permanent Vice Chair of the Board Nguyen Thanh Nhung has been named acting CEO, assuming the role immediately upon Diem's departure.

In her farewell letter to employees after nearly eight years at the helm, Diem wrote, "Today, I bid farewell to my position as CEO to focus on working with the board to chart a new course for Sacombank: Safety, efficiency, and sustainability in the post-restructuring era."

Under Thach Diem’s leadership, the bank witnessed a remarkable turnaround. Between 2016 and 2024, total assets rose by over 125 per cent, loans increased 169 per cent, total deposits grew by 121 per cent, and pre-tax profit jumped from $6.25 million to over $49 million.

Acting CEO Nhung is expected to build on these achievements and continue leading Sacombank towards sustainable growth. With more than 30 years of experience in core banking operations, he previously held key roles including deputy CEO at Eximbank and CEO at VietBank.

Meanwhile, at HDBank, Nguyen Huu Dang was appointed as CEO on May 13, replacing acting CEO Pham Quoc Thanh, who will assume the role of vice chairman of the board for the 2022-2027 term from that date.

This leadership transition is part of HDBank’s broader strategy to reshape HD Financial Group as a modern, diversified financial-banking conglomerate under its 2025-2030 roadmap.

In late April, Eximbank’s newly elected board of directors for the 2025-2030 term reappointed Nguyen Canh Anh as chairman, concurrently serving as the bank’s legal representative, following the bank's AGM. The appointment took effect on April 29.

Prior to the appointment, speculation had been circulating that Pham Tuan Anh, who spent 26 years at Gelex and previously chaired several subsidiaries within the conglomerate, might become the bank’s next chairman. Gelex currently holds a 10 per cent stake in Eximbank, making it a significant shareholder. Pham Tuan Anh is now a member of Eximbank’s board of directors.

Earlier that month, PGBank also finalised its leadership transition during its 2025 AGM on April 24. Shareholders elected five new board members, who subsequently selected Cao Thi Thuy Nga as chairwoman and Tran Ngoc Dung to lead the Supervisory Board.

The executive changes extended to major state-backed lenders as well. On March 7, Vietcombank held an extraordinary shareholders’ meeting that saw Le Quang Vinh, previously Deputy CEO in charge of operations, elected to the board for the 2023-2028 term. The same meeting accepted the retirement of longtime board member Nguyen My Hao and confirmed Vinh’s appointment as CEO for a five-year term.

The leadership transitions began earlier in the year when LPBank’s board moved swiftly in February to name Vu Quoc Khanh as its new CEO, receiving same-day approval from the State Bank of Vietnam.

A senior financial market expert suggested these leadership changes may directly affect bank stock valuations in the short term. Nevertheless, analysts maintain an optimistic outlook, emphasising that banks' ongoing restructuring and sustainable development strategies should yield positive results in the coming years.

VIR