In 2025, credit is expected to rise significantly to support national economic growth. Experts emphasize that this capital should flow into priority sectors that create sustainable added value.

In reality, cash is flooding into Vietnam’s stock market. Trading value has surged from roughly $1 billion per session to nearly $2 billion, fueled by retail investors and new capital inflows. Notably, a substantial portion originates from securities firms, heavily backed by bank loans.

VietNamNet reviews the trillion-dong loans poured by banks into brokerage firms.

So, where is this capital coming from? Who is supplying securities firms with such vast sums, like BIDV Securities Company (BSC), which has taken out nearly VND 16 trillion (about $610 million) in loans, largely for margin lending?

On July 29, the Vietnamese stock market recorded its highest-ever trading liquidity: nearly VND 72 trillion (over $2.7 billion) on the Ho Chi Minh Stock Exchange (HoSE), amid a surge in profit-taking pressure. The VN-Index dropped over 64 points from a historic high above 1,557, closing at 1,493.41. Strong bottom-fishing demand helped drive the massive liquidity.

As of the end of Q2 2025, total outstanding loans for margin lending among 40 securities firms reached VND 285 trillion. When factoring in all firms, total margin and advance loans may exceed VND 300 trillion (approximately $11.4 billion) - an all-time high.

Margin lending remains a "golden goose" for brokerages, yielding substantial profits during bull markets. However, capacity for expansion is shrinking. Some firms have hit their margin lending limits.

Most of these are well-capitalized firms with strong funding sources, often backed by banks.

Under regulations, a securities firm may lend a maximum of twice its equity capital in margin loans.

Stock boom raises the question: Where does BSC get the money to lend?

According to the financial report of BIDV Securities Company (BSC), by the end of June 2025, BSC's total securities lending stood at over VND 6.606 trillion (approximately $251 million), including nearly VND 6.332 trillion ($240 million) in margin loans, up sharply from VND 5.057 trillion ($192 million) at the beginning of the period.

This lending channel is highly lucrative for BSC, with loans granted to clients for stock margin trading. As of June 30, 2025, these loans had original terms of up to three months with annual interest rates ranging from 7.5% to 12.5%. By December 31, 2024, interest rates ranged from 8.5% to 13% annually.

Meanwhile, BSC borrowed at rates below 7.2% per year with terms up to 12 months.

According to the semi-annual report, by the end of June 2025, BSC’s short-term borrowings totaled nearly VND 8.146 trillion ($309 million), up from VND 4.877 trillion ($185 million) earlier in the year. This included VND 7.247 trillion ($275 million) borrowed from banks and more than VND 898 billion ($34 million) from institutions and individuals, all under one-year terms and with interest rates below 6% per year.

So which banks are lending big to BSC?

BSC did not disclose full details but did name two institutions. By the end of Q2 2025, BSC had borrowed VND 800 billion ($30.4 million) from Vietcombank and VND 835 billion ($31.7 million) from Vietnam International Commercial Joint Stock Bank (VIB). The remaining VND 5.612 trillion ($212 million) came from unnamed banks.

In the same period, BSC reported total short-term borrowings of nearly VND 15.8 trillion ($599 million), including nearly VND 14.2 trillion ($538 million) from banks and over VND 1.6 trillion ($60 million) from institutions and individuals.

Among the nearly VND 14.2 trillion in bank loans, BSC borrowed VND 1.19 trillion ($45 million) from Vietcombank and VND 1.5 trillion ($56.7 million) from VIB. The remaining VND 11.5 trillion ($435 million) came from “other entities” under the bank loan category.

This raises the question: Who are these undisclosed lenders providing BSC with over VND 11.5 trillion to fund its margin lending and business operations?

In BSC’s shareholder structure, BIDV (Bank for Investment and Development of Vietnam) holds nearly 52%, while Hana Securities holds over 35%.

In February 2025, BIDV formed a strategic cooperation committee with Hana Bank to enhance partnership efficiency between BIDV and South Korea’s Hana Financial Group (HFG).

Hana Securities became a strategic shareholder of BSC in September 2022 by investing VND 2.7 trillion ($102 million) for more than 65.7 million BSC shares. Earlier in 2019, Hana Bank invested $1 billion to become a strategic investor in BIDV, now holding a 14.74% stake.

In July 2025, BSC announced four board resolutions approving credit limits at various banks: Vietcombank - Tay Ho Branch (July 21, limit of VND 1.5 trillion or $57 million), VPBank (July 21, VND 2.8 trillion or $106 million), ACB (July 8, VND 2 trillion or $76 million), and Agribank (July 7, VND 3 trillion or $114 million).

These credit lines serve multiple purposes, including supplementing working capital for bond investments (excluding corporate bonds), issuing guarantees for foreign loans, trading government bonds, and funding margin lending activities.

In reality, cross-lending activity in the financial sector is extremely dynamic. Securities firms, whether subsidiaries of banks or not, engage in similar operations. Many also receive funding from BIDV.

Banks may legally inject capital into brokerages through direct or indirect loans, equity investment, liquidity support, bond purchases, securities repurchase agreements (repos), or interbank credit lines.

Manh Ha