Vietnam to Inject VND20.695 Trillion into Vietcombank to Strengthen Banking Sector
Capital infusion aims to support government policies and expand Vietcombank’s international presence
Vietnam is set to inject VND20.695 trillion (US$815 million) into Vietcombank, the country’s largest state-owned commercial bank, to enhance its capacity in supporting government policies and stabilizing the banking sector. Deputy Prime Minister and Finance Minister Ho Duc Phoc announced the capital injection on Wednesday, aligning with the banking industry development plan for 2025 and the 2021-2025 restructuring and bad debt resolution strategy. Phoc emphasized the importance of providing Vietcombank with sufficient resources to aid in the restructuring of weak institutions and contribute to economic stability.
The State Bank of Vietnam (SBV), which holds a 74.8% stake in Vietcombank, plans to fund this capital increase using share dividends received in 2018 and retained profits from 2021. This financial boost is also intended to support Vietcombank’s efforts to expand its international reach, positioning it as one of Asia’s leading banks. Additionally, Vietcombank is set to take over Construction Bank as part of its ongoing restructuring program to address non-performing loans, further consolidating its position in the banking industry.
Vietnam’s parliament is expected to approve the capital injection plan in a vote scheduled for November 30. Following the announcement, shares of Vietcombank, valued at $20.2 billion, saw a slight increase, closing up 0.11% to 91,500 dong. This strategic investment underscores Vietnam’s commitment to strengthening its financial institutions and fostering economic growth through robust banking support.
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The State Bank of Vietnam (SBV), which holds a 74.8% stake in Vietcombank, plans to fund this capital increase using share dividends received in 2018 and retained profits from 2021. This financial boost is also intended to support Vietcombank’s efforts to expand its international reach, positioning it as one of Asia’s leading banks. Additionally, Vietcombank is set to take over Construction Bank as part of its ongoing restructuring program to address non-performing loans, further consolidating its position in the banking industry.
Vietnam’s parliament is expected to approve the capital injection plan in a vote scheduled for November 30. Following the announcement, shares of Vietcombank, valued at $20.2 billion, saw a slight increase, closing up 0.11% to 91,500 dong. This strategic investment underscores Vietnam’s commitment to strengthening its financial institutions and fostering economic growth through robust banking support.
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