The race to raise charter capital is intensifying as major banks simultaneously expand their financial resources to meet Basel III standards and strengthen long-term competitiveness.

Vietnam’s banking giants race to build billion-dollar capital bases

All six Vietnamese banks with charter capital exceeding VND70 trillion (US$2.7 billion) have announced ambitious expansion plans for 2026, with five lenders expected to cross the VND100 trillion threshold for the first time.

As of December 31, 2025, six domestic commercial banks had charter capital above VND70 trillion, including Vietcombank with VND83.557 trillion (US$3.3 billion), MB with VND80.550 trillion (US$3.1 billion), VPBank with VND79.339 trillion (US$3.1 billion), VietinBank with VND77.669 trillion (US$3 billion), Techcombank with VND70.862 trillion (US$2.8 billion), and BIDV with VND70.213 trillion (US$2.7 billion).

All six banks have already received approval from their 2026 annual shareholder meetings for plans to raise charter capital this year, setting the stage for a major reshuffle in the banking sector’s capital rankings.

Among them, VietinBank, VPBank, Techcombank, BIDV and MB are all expected to surpass VND100 trillion in charter capital.

Techcombank is projected to make the biggest leap, climbing from fifth place to become the system leader in charter capital after issuing more than 4.28 billion shares from equity capital to existing shareholders at a 60% issuance ratio, meaning shareholders will receive 60 new shares for every 100 shares held.

The plan would increase Techcombank’s charter capital by VND42.517 trillion (US$1.7 billion).

The bank also plans to issue more than 35.8 million ESOP shares at a face value of VND10,000 per share, adding another VND358.7 billion (US$14 million) in capital.

After both issuances are completed, Techcombank’s charter capital is expected to rise by VND42.876 trillion (US$1.7 billion), from VND70.862 trillion to VND113.738 trillion (US$4.4 billion).

VPBank is also expected to improve its ranking from third to second place after approving a plan to raise charter capital from more than VND79.339 trillion to over VND106 trillion (US$4.1 billion) through two stock dividend distributions at a combined rate of 26.04% and a private placement for foreign investors.

At VietinBank, charter capital is projected to increase to more than VND105 trillion (US$4.1 billion) after the bank uses all retained profits remaining after reserve allocations to pay stock dividends. However, the plan still requires approval from relevant authorities.

BIDV said it has already completed a private placement of more than 258 million shares to investors, equivalent to 3.75% of outstanding shares.

The bank is continuing to implement plans to increase capital from reserve funds and retained earnings from 2023.

If regulators approve its stock dividend plan, BIDV could raise charter capital to more than VND105 trillion.

Military Bank (MB) has also approved a plan to lift charter capital from VND80.550 trillion to as much as VND102.687 trillion (US$4 billion), representing an increase of 27.5%.

MB’s capital increase strategy includes three components: stock dividends, share offerings to existing shareholders and private placements.

Vietcombank is also joining the aggressive capital expansion race after shareholders approved a plan to raise charter capital using reserve funds for charter capital supplementation.

Specifically, the bank plans to issue more than one billion shares, increasing charter capital by up to VND10.687 trillion (US$415 million).

Once completed this year, Vietcombank’s charter capital will rise from VND83.557 trillion to nearly VND94 trillion (US$3.7 billion). However, amid the rapid expansion of rival lenders, Vietcombank could lose its leading position and fall to sixth place.

According to the banks, the capital increases are aimed at strengthening financial capacity, meeting safety standards, improving risk management and creating more room for investment and business expansion.

Smaller banks also accelerate

Alongside the billion-dollar race among major lenders, pressure to comply with Basel III standards is also pushing smaller banks to accelerate capital increases this year.

National Citizen Bank (NCB), for example, recently approved a plan to raise charter capital by VND10 trillion (US$389 million) through a private placement to strengthen financial capacity, bringing total charter capital to VND29.279 trillion (US$1.1 billion).

NCB Chairwoman Bui Thi Thanh Huong said completing the capital increase would provide a stronger financial foundation, improve funding costs and ensure compliance with capital safety requirements.

In terms of growth rate, NCB is expected to record the strongest increase, with charter capital tripling within just two years.

Orient Commercial Joint Stock Bank (OCB) plans to issue bonus shares at a ratio of 15%, equivalent to more than 399 million shares with a total issuance value of nearly VND4 trillion (US$155 million), lifting charter capital to more than VND30.625 trillion (US$1.2 billion).

The plan is expected to be implemented in 2026 after receiving regulatory approval.

Meanwhile, Ban Viet Bank (BVBank) expects charter capital to rise by VND3.504 trillion (US$136 million) this year through a public share issuance at a 2:1 ratio and an ESOP program, bringing total charter capital to VND9.912 trillion (US$385 million).

Other banks including ABBank and VietBank have also approved plans to increase charter capital to VND13.400 trillion (US$521 million) and VND15.500 trillion (US$603 million), respectively.

Tuan Nguyen