return icon

‘Big four’ banks turn into ‘big two’

With Vietcombank making up 40 percent of total profit of four state-owned banks, the competition among the ‘big four’ banks has been reduced to the ‘big two’.

Four state-owned banks last week released the 2019 finance reports. As the bank with the lowest total assets and outstanding loans, Vietcombank saw profit twice as much as the other three.



In 2015, Vietcombank ranked second to VietinBank in profit, but it has been growing since then. Its profit proportion increased from 25 percent of the ‘big four’ to 40 percent just within five years.

The figures about bad debt, credit room and non-credit earnings all show that Vietcombank has advantages to grow in the next years.

In 2019, it made a consolidated profit of over $1 billion, adding itself to the list of the 200 top financial groups aroundthe globe. Its profit growth rate was 35-40 percent a year in the last four years, which includes profit from divestment deals in 2018.

As for VietinBank, after 2018 when it restructured, the bank surpassed BIDV in 2019 with the reported separated profit of VND11.5 trillion. However, the bank was cautious when setting a modest target of 10 percent growth rate in 2020.

Four state-owned banks last week released the 2019 finance reports. As the bank with the lowest total assets and outstanding loans, Vietcombank saw profit twice as much as the other three.

Meanwhile, BIDV reported consolidated profit of VND10.8 trillion in 2019, an increase of 14 percent over the year before, while it plans the 17 percent growth rate in 2020.

In the last four years, VietinBank lagged behind the ‘big four’ with average profit growth rate of 10 percent per annum, the lowest among the four banks. The growth rate of Agribank was nearly 40 percent, which allowed the bank, whose profit was just half of BIDV in 2014, to catch up with BIDV in 2019.

Credit quality was the key behind the big differences in the business results of the four state-owned banks. The ‘clean’ lending portfolio allowed Vietcombank to control the cost for credit risk provisioning, thus helping increase pre-tax profit.

Vietcombank reported the low ratio of bad debt, just 0.77 percent in 2019. It was also the first bank which cleared the bad debts sold to the Vietnam Asset Management Company (VAMC) in 2016.

Agribank was the second bank among the ‘big four’ that finalized the bad debts sold to VAMC in 2019. The other two banks still cannot clear the bad debts at VAMC and have to continue to make provisions against VAMC special bonds, which partially affects its profit growth.

While Vietcombank’s provisioning against credit risks is just equal to 25 percent of net profit from business activities, the figures are higher at the other three banks. At BIDV, the figure was 70-80 percent at times.

Thanh Mai 


The ‘big four’ banks thirsty for foreign capital

The ‘big four’ banks thirsty for foreign capital

Initial encouraging results have occurred after efforts were made to reduce the need for capital from banks where the state holds the controlling stake.

Vietnam’s banks to complete shift to chip cards in 2 years

Vietnam’s banks to complete shift to chip cards in 2 years

Vietnam’s banks started replacing magnetic cards with chip cards some years ago, but the process has been going slowly.


Co la, the food tray that demonstrates Muong ethnic culture in Hoa Binh

For Muong ethnic people, especially those living in Hoa Binh Province, cỗ lá (literally means a food tray displaying several dishes) is more than just a popular food.

Experts call for Hanoi to become a 'creative city'

Cultural industry development is a new issue, and Hanoi does not have much experience promoting its potential advantages.

Apple jumps to second highest seller of smartphones in Vietnam for first time

iPhone accounted for 20.5 percent of market share in Vietnam in October 2022, according to GfK.

Credit concerns affecting Vietnamese stocks should ease soon: VinaCapital

The demand for new housing units in Vietnam is still strong and prices are still affordable, and so the prices of real estate stocks are likely to recover if and when the Government takes action to ease credit conditions.

Fuel prices soar, EVN faces huge losses

Due to the global rise of coal, oil and gas prices, EVN’s electricity production costs and purchase costs have increased sharply. The group may incur losses of up to VND64.8 trillion in 2022.

Banks gain big profits from forex trading

Most banks reported strong profit growth from the foreign exchange business in the first three quarters of this year thanks to the sharp appreciation of the US dollar, Q3 2022 financial statements showed.

National Sports Games to take part in December

The 2022 National Sports Games (NSG) will be held in Quang Ninh Province from December 9-21.

Vietnam lures over $25 billion in foreign investment in 11 months

Despite a decline of 18 per cent in newly registered capital to $11.5 billion, foreign capital disbursement saw a positive increase of 15 per cent to reach $19.68 billion in the January - November period.

India - new market for VN tourism

According to the World Tourism Organization, Indians spent $22.9 billion traveling abroad in 2019 and the figure was estimated to reach $42 billion by 2024, $45 billion by 2025 and about $91 billion by 2030.

Without career guidance, students drop out in first, second academic years

Without appropriate career guidance when choosing a major in a university, many students have studied the wrong majors so and dropped out after the first year because they chose an unsuitable study program.

Three factors keep Vietnam’s economy humming along

Infrastructure investment, trade environment and competitive wages are three factors that keep Vietnam’s economy humming along and its growth numbers positive, according to an article published on the

Hanoi Tourism Ao Dai Festival 2022 underway next week

The Hanoi Ao Dai Festival 2022 will take place around Hoan Kiem Lake pedestrian street from December 2-4.

Minister of Transport issues warning to managers of delayed projects

If transport projects do not proceed on schedule, managers need to prepare to resign, Transport Minister Nguyen Van Thang has said.

Vietnam promoting zero-emission economy

The Vietnamese Government is prioritizing climate change responses, green economy, sustainable development in its action programs. Therefore, businesses are advised to adapt to these concepts for their own growth.

VN businesses promote int’l fundraising amid domestic tightened policy

Many Vietnamese businesses have boosted foreign fundraising to cope with their capital shortage amid the country's tightened monetary policy.