return icon

Foreign capital flows to Vietnamese banks

Large banks as well as smaller ones are seeking foreign investors in today's competitive market.

BIDV has confirmed that it will issue 603 million shares to KEB Hana Bank, a deal which is expected to bring VND20.3 trillion. The bank from South Korea will acquire 15 percent of BIDV’s shares.



Prior to that, Vietcombank made a private offering to Singaporean GIC and Mizuho Bank, one of the largest institutions of Japan, collecting VND6.2 trillion, or $265 million.

As for VietinBank, Kanetsugu Mike, CEO of Mitsubishi UFJ Financial Group (MUFG), said as VietinBank’s strategic shareholder, MUFG is willing to support the bank to increase its charter capital to facilitate its operation.

More and more foreign bankers have expressed willingness to invest in Vietnam’s banks, not only large banks, but small ones as well.

LienVietPostBank, SHB, OCB, VPBank, TPBank and Techcombank have received hundreds of million dollars from foreign partners, including JPMorgan Chase Bank, IIB, IBEC, IFC and Deutsche Bank.

LienVietPostBank, SHB, OCB, VPBank, TPBank and Techcombank have received hundreds of million dollars from foreign partners, including JPMorgan Chase Bank, IIB, IBEC, IFC and Deutsche Bank.

Analysts say that Vietnam’s good economic performance has helped banks gain satisfactory business results. Besides, the open policy on attracting foreign investments, stable monetary policies and the strong rise of bank shares, which are leading the stock market, have prompted foreign investors to pour money into Vietnam’s banks.

Finance experts commented that after the State Bank of Vietnam tightens control over the banks’ use of short-term capital for long-term lending, foreign institutions that arrange long-term syndicated loans will help ease pressure on capital.

The flow of foreign capital into Vietnam’s banks will help ease the thirst for capital of banks, especially four state owned ones, allowing them to satisfy requirements in Basel II.

The capital adequacy ratios (CAR) of four state owned banks, namely Vietcombank, VietinBank, BIDV and Agribank, are close to the minimum level, 9 percent, while they are meeting difficulties in raising charter capital. Meanwhile, their credit has been growing rapidly. Making private offerings to foreign investors is the most feasible solution.

However, calling for foreign capital is not the solution that all banks can apply. Many banks have no more room for foreign investors. This means that the foreign ownership ratio in the bank has hit the ceiling of 30 percent. ABBank, TP Bank, Eximbank, SCB and VietinBank, for example, all have seen foreign ownership ratios nearly hitting the 30 percent threshold.

Banks are seeking ways to get more foreign capital by asking the government to lift the ceiling for foreign ownership ratio in Vietnam’s banks.

Seck Yee Chung from Amcham said at the mid-term 2019 Vietnam Business Forum that the banking sector is using one a low oreign ownership ratio ceiling compared with the other countries with the same development level.

Thanh Lich 


Vietnam's OTC-traded bank shares too cheap for purchases

Vietnam's OTC-traded bank shares too cheap for purchases

Lack of disclosed information, listing plans and risks of non-performing loans are dragging OTC-traded bank stocks down.

Vietnam's banks get more support to cut interest rates

Vietnam's banks get more support to cut interest rates

Commercial banks are expected to lower lending interest rates after getting more support to cut input costs from the State Bank of Viet Nam (SBV)’s...


25 Apple ’s partners have factories set up factories in Vietnam

The number of Apple manufacturing partners setting up their factories in Vietnam has increased to 25 at present, four more than the 2020 figure, the tech giant said in its list of supply partners for the fiscal year 2021.


Hanoi inaugurates new road tunnel to address traffic congestion

Netlflix asked to remove "Little Women" for distorting history

The request was made by the Authority of Broadcasting and Electronic Information, under the Ministry of Information and Communications, according to Deputy Director General Le Quang Tu Do.

UOB upgrades 2022 growth forecast for Vietnam to 8.2%

Given Vietnam’s strong economic recovery in the third quarter, the Singapore-based United Overseas Bank (UOB) has raised its forecast for the country’s GDP growth this year to 8.2%, from the previous prediction of 7%.

Vietnam rice prices surge on Indian rice export restrictions

Prices of Vietnamese rice surged in the global and domestic markets after India announced restrictions on broken rice exports and a 20% duty on exports of various other types.

Deaths of Adenovirus total nine, infections increase with many severe cases

The child died at the National Children's Hospital on Monday and is not thought to have any health issues but had been treated for the past 50 days and recently needed a ventilator.


Vietnamese fleet to handle a fifth of exports by 2030: transport ministry

A day in the life of a fisherman in ​​Mong Cai

After Van Don - Mong Cai highway opened for traffic in early September, the border city of Mong Cai became a new tourist attraction.

Vietnamese navy ship arrives at Lumut port, beginning Malaysian visit

Sailing Ship 286-Le Quy Don of the Vietnam Naval Academy and a delegation of the Vietnam People’s Navy arrived at Lumut port in the Malaysian state of Perak on October 4, beginning a visit to Malaysia.

Hanoi, CNN boost tourism promotion cooperation

CNN wishes to resume tourism promotion cooperation with Hanoi, thus contributing to introducing the capital city’s cultural identity and valuable traditions to the world, Senior Vice President of CNN Robert Bradley said.

Vietnam's brand value reaches $431 billion

According to the latest report of the world's leading brand valuation consulting company - Brand Finance, Vietnam's national brand value has increased by 11 percent in 2022, from $388 billion to $431 billion.

Unblocking capital sources for the economy

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

Share prices fall, billionaires lose big

Billionaire Tran Dinh Long’s assets have fallen by $1.6 billion this year, while billionaire Pham Nhat Vuong has lost $2 billion.

Video game helps promote Vietnamese culture, tourism

The video game “Lac Viet phieu luu ky” (Lac Viet Adventures) was selected by the Ministry of Foreign Affairs as a promotional product on digital platforms at the Vietnam Days Abroad 2022 in Austria, India, and the Republic of Korea this year.

Over 100 Vietnamese citizens deported from China for illegal stay

106 Vietnamese citizens that stayed illegally in China were returned to Vietnamese authorities at the Ly Van Border Gate in the northern province of Cao Bang on Tuesday.