Vietnam’s banking system is entering a new phase of urgency on capital. The push comes from a combination of strong credit demand and tighter regulatory expectations. The Business Times reported that analysts forecast full-year credit growth of 18 to 20 per cent, versus an initial target of 16 per cent. At the same time, the State Bank of Vietnam has signaled a tougher environment for balancing liquidity and interest rates, with Governor Pham Duc An calling policy management “difficult” amid high capital demand and limited funds mobilised from the economy. The result is a sector-wide sprint to reinforce buffers before the next growth cycle deepens.
The macro backdrop makes the capital equation harder. Vietcombank chairman Nguyen Thanh Tung warned that domestic savings will not be sufficient for the scale of investment planned, noting calculations that to achieve economic growth of about 10 per cent, total investment would need to reach roughly 40 per cent of GDP, while Vietnam’s domestic savings rate is about 36.5 per cent. Vietnam also has a high dependence on bank credit: the World Bank indicated the credit-to-GDP ratio reached 145 per cent in 2025. With banks still a principal funding channel, pressure is rising to mobilise more capital, including external sources, without letting borrowing costs climb too far.
State-Controlled Banks Lead the Capital Playbook
At annual general meetings, Vietcombank, VietinBank, and BIDV put capital hikes at the center of their 2026 agendas. Vietcombank plans to issue more than one billion shares from its capital reserve fund, lifting charter capital by nearly VNĐ10.7 trillion (US$406 million) and taking it from VNĐ83.56 trillion to around VNĐ94.24 trillion. It is also pursuing a private placement of up to 6.5 per cent of shares to strategic investors in the 2025–26 period; Mizuho Bank Ltd currently holds a 15 per cent stake. BIDV is retaining more than VNĐ13.2 trillion in profit to pay dividends in shares and is advancing additional steps, with potential to exceed VNĐ100 trillion in charter capital if fully implemented. VietinBank plans to use nearly VNĐ16.21 trillion in retained earnings to issue stock dividends, and further execution of its plan could lift charter capital beyond VNĐ105 trillion.
These moves sit inside a broader story about Vietnam bank capital raising and Basel readiness. One driver is the regulatory direction of travel. A Vietnam.vn report on Circular 14/2025 said banks must gradually increase the minimum capital adequacy ratio annually, from the current 8 per cent to 10.5 per cent by 2030, linking charter-capital growth to meeting Basel III standards and expanding operations. Timvest also noted that regulators introduced a roadmap toward Basel III implementation, aimed at strengthening capital transparency and risk management. In practice, this pushes banks toward stock dividends and share issuance rather than cash payouts, because retained earnings can directly support capital buffers.
Funding pressure is also visible in system metrics. A Vietnam.vn overview of reputable banks said system-wide credit growth in 2025 is projected to reach nearly 19.4 per cent, while credit growth significantly outpaced customer deposit growth. By end-Q1 2026, the loan-to-deposit ratio rose to nearly 114 per cent, prompting banks to seek additional funding sources, including issuing securities, interbank funding, and increasing long-term capital. The same source said total operating income of 27 listed commercial banks exceeded 738 trillion VND in 2025, up over 13 per cent year on year, while net profit after tax for the industry reached nearly 285 trillion VND. Those earnings help, but the capital race remains central as banks prepare for stricter Basel-related requirements and the next wave of lending demand.
Why are Vietnamese banks accelerating capital increases now?
What capital plans has Vietcombank announced for 2025–26?
How do Basel standards connect to the Vietnam bank capital raising Basel topic?
What does the loan-to-deposit ratio signal about funding conditions?
How reliant is Vietnam’s economy on bank credit?
