VietNamNet Bridge - Big changes have happened to the Vietnamese banking sector over the last five years, with 2015 being the last year for the banking restructuring process, which began in 2011. 

 

 

 

The total chartered capital of Vietnam’s 12 smallest banks is only VND460 billion higher than the chartered capital of VietinBank, the largest bank in the country.

The bank restructuring process was done to create a more competitive banking system which can adapt to the new circumstances of global economic integration.

In the last five years, banks have been merged with others to create larger banks, while three banks have been taken over by the State. 

The banking sector has been ‘purged’ with the number of banks cut to 34. A ‘new world order’ has been established in the sector.

Regarding the three nationalized banks, the State Bank has announced that CBBank now has chartered capital of VND3 trillion, the minimum required capital for a joint stock bank under the current laws. 

Meanwhile, GP Bank’s chartered capital is VND3.018 trillion and Ocean Bank’s VND4 trillion.

VietinBank still leads the banking system in chartered capital with VND37.234 trillion. However, the gap between the largest bank and the others has narrowed.

In the past, VietinBank by far outstripped the other three banks – Agribank, BIDV and Vietcombank – with chartered capital higher by about VND10 trillion. 

But BIDV follows closely with VND31,481 trillion in capital, after admitting MHB.

The 34 operational commercial banks can be classified into three groups. The first is the top-tier, comprising nine banks, each of which has over VND10 trillion. The second includes nine banks with chartered capital of between VND5 trillion and VND10 trillion. The smallest ones, 16, are those with chartered capital of less than VND5 trillion.

There are nine banks which have VND3 trillion or more in capital, namely BaoViet Bank, KienLong Bank, NamA Bank, PG Bank, Vietcapital Bank, CBBank, NCB, GP.Bank and NamA Bank.

The chartered capital of the 12 smallest banks is VND37.694 trillion in total, which is just VND460 billion higher than VietinBank’s capital. 

Meanwhile, the largest bank hopes it will have VND49 trillion in chartered capital by the end of 2015.

Many commercial banks have revealed their plans to increase capital. Twelve banks plan to implement plans in 2015.

VPBank has successfully increased its capital from VND6.348 trillion to VND8.056 trillion, and BacA Bank to VND4.4 trillion.

MBBank is moving ahead with its plan to raise capital to VND16 trillion, which it has been preparing for the last two years. 

If it succeeds, MBBank would become the fifth largest bank in Vietnam, the position held by Sacombank.

Tri Thuc Tre