Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, ticker: HDB) has cemented its status as one of Vietnam’s most efficient lenders, announcing a $606.6 million USD pre-tax profit for the first nine months of 2025 (up 17% YoY).

Driven by market-leading profitability ratios and a major move toward the London Stock Exchange (LSE), HDBank is positioning itself as Vietnam’s top choice for international investors seeking high growth and high dividends.

Strong Fundamentals: Leading the Efficiency Race

HDBank’s financial health is robust, outperforming the sector in core efficiency metrics:

• Return on Equity (ROE): 25.2%, signaling exceptional profitability relative to shareholder equity.
• Return on Assets (ROA): 2.1%, demonstrating highly effective asset management.
• Capital Adequacy Ratio (CAR) (Basel II): 15%, placing it among the most financially secure banks in the Vietnamese market.

As of September 30, 2025, the bank’s total consolidated assets reached approximately $32.05 billion USD (up 12.1% YTD), with credit growth expanding by a rapid 22.6%, focused on essential and priority economic sectors. The non-performing loan (NPL) ratio remains tightly managed at 1.97% (individual basis).

The Digital Dividend: Non-Interest Income Explodes

HDBank’s aggressive digitization strategy is paying off handsomely, drastically diversifying its revenue streams:

• Non-Interest Income: Soared 178.6% to $219.9 million USD.
• Digital Adoption: Transactions via digital channels jumped 47% and now account for 94% of all transactions.
• Cost Efficiency: The Cost-to-Income Ratio (CIR) dropped to just 25.7%—one of the lowest in the industry—reflecting superior operational leverage from its digital shift.

Serving over 20 million customers across its ecosystem, the bank is successfully transitioning into a modern, customer-centric lender.

Subsidiary Success and International Ambitions

The bank’s specialized subsidiaries are also driving group profitability:

• HD SAISON (Consumer Finance): Maintained its market-leading position with $45.1 million USD in profit and a high ROE of 24.4%.
• HD Securities: Recorded $25.2 million USD in profit (up 30%) and secured the industry’s top spot for ROE among securities firms.
• Vikki Bank: The newly converted digital-first unit turned profitable just seven months after launch, rapidly acquiring over 1.3 million new customers.

Furthermore, HDBank is making a significant push for global integration. Following a high-level visit by the Vietnamese Party Chief to the UK, the bank is formalizing an MOU with the London Stock Exchange (LSE). This agreement aims to establish a framework for potential listing, international capital mobilization, and broader promotion to global investors via the London capital market.

A Green Light for Foreign Investors

HDBank continues its shareholder-friendly policies:

• High Payout: The bank is seeking shareholder approval for a total 2025 payout of 30% (25% stock dividend and 5% bonus shares), maintaining its long-standing commitment to generous returns.
• FDI Opportunity: Recent regulatory changes (Amended Decree 69) have raised the foreign ownership limit (FOL) at HDBank to 49%. This expanded capacity is expected to significantly boost foreign capital inflow and increase liquidity for its stock.

With its combination of superior profitability, a clear digital strategy, high dividend yields, and a tangible move toward international capital markets, HDBank is uniquely positioned to remain a double-digit growth leader in Vietnam’s fast-evolving banking sector.

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Source: Vietnam Insider

The State Bank of Vietnam (SBV), the nation’s central bank, announced on Tuesday its commitment to maintaining flexible monetary policies throughout the remainder of the year, with a clear emphasis on fostering economic growth.

This directive comes as global economic uncertainties continue to cast a shadow, influencing Vietnam’s economic trajectory and posing challenges to its ambitious growth targets.

Deputy Governor Pham Thanh Ha articulated that persistent global financial and monetary market risks are exerting pressure on Vietnam’s monetary policy management, particularly concerning exchange rates and interest rates. Despite these external pressures, the SBV remains resolute in its pursuit of an economic growth rate of at least 8% for the current year.

To facilitate this growth, the central bank plans to intensify efforts to encourage commercial banks to reduce operational costs and accelerate their digital transformation initiatives. These measures are intended to create a conducive environment for further reductions in lending rates, thereby making capital more accessible and affordable for businesses. Concurrently, the SBV will guide banks to boost lending in a “safe and effective” manner, specifically channeling funds towards productive and business-oriented projects. This strategic allocation of credit aims to stimulate key economic sectors. As of the end of June, total outstanding loans from banks had already seen a robust increase of 9.9% compared to the end of last year, indicating an active lending environment.

The SBV’s proactive stance highlights a critical balance Vietnam aims to strike: safeguarding macroeconomic stability while aggressively supporting economic expansion. The emphasis on lowering lending rates and directing credit towards production and business activities is a direct effort to inject liquidity into the economy, stimulate investment, and bolster domestic demand. For international investors and businesses, this signals a government keen on maintaining a supportive financial environment, even in the face of global volatility. The focus on digitalization within the banking sector also suggests a long-term commitment to enhancing efficiency and streamlining financial services, potentially benefiting foreign enterprises operating or planning to operate in Vietnam.

Analysts are closely watching how Vietnam’s monetary policy flexibility will navigate the delicate interplay of global financial shifts and domestic growth imperatives. The push for cost-cutting and digitalization within banks is seen as a necessary structural reform to enable sustainable interest rate reductions without compromising financial stability. The robust credit growth observed in the first half of the year indicates a healthy appetite for borrowing, which, if channeled effectively into productive sectors, could indeed contribute significantly to the 8% growth target. However, managing exchange rate stability amidst external pressures will remain a key challenge for the central bank.

Looking ahead, the SBV’s commitment to prioritizing growth, coupled with its flexible monetary policy approach, sets a clear direction for Vietnam’s economic management in the latter half of the year. The upcoming months will reveal the effectiveness of these measures in mitigating external risks and realizing the ambitious growth target. Continued efforts to optimize lending conditions and strategically direct capital will be crucial for maintaining Vietnam’s economic momentum and solidifying its position as an attractive destination for business and investment.

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Source: Vietnam Insider

Hanoi, May 11 – Vietnam’s Asia Commercial Bank (ACB, HOSE: ACB) has received approval from the State Bank of Vietnam (SBV) to increase its charter capital through a stock dividend issuance, boosting its total capital to nearly VND 51.4 trillion (approximately USD 2 billion).

According to a recent statement from ACB, the SBV has approved the bank’s proposal to raise its charter capital by nearly VND 6.7 trillion. The capital hike will be executed by issuing shares to pay dividends—an initiative previously endorsed at ACB’s Annual General Meeting on April 8, 2025.

Following the issuance, ACB’s charter capital will increase from VND 44.667 trillion to VND 51.367 trillion. The bank expects to complete the process in Q3 2025.

ACB’s Board of Directors emphasized that this capital boost is essential for expanding long- and medium-term funding to support lending activities, investments in government bonds, strategic projects, and upgrading its infrastructure, while strengthening financial resilience in a dynamic market environment.

Shareholding Reshuffle Among Key Stakeholders

In a related development, ACB recently updated its list of major shareholders (those holding 1% or more of its charter capital). Notably, Nguyen Thien Huong Jenny has increased her stake to over 63.2 million shares, equivalent to 1.416%. Including related parties, her total holdings reach 111.5 million shares (2.497%).

Meanwhile, Nguyen Duc Hieu Johnny now holds over 51 million shares, or 1.142%, with related parties collectively controlling 123.7 million shares, amounting to 2.77%.

Both individuals are children of Ngo Thu Thuy, Chairwoman of Au Lac Corporation, a key player in education and real estate.

Earlier disclosures show that Thien Huong International Education Village JSC—a known affiliate of the Au Lac ecosystem—owns nearly 58.6 million ACB shares (1.3%), with related holdings totaling over 107.7 million shares (2.4%).

Taken together, the Au Lac Group now holds approximately 3.86% of ACB’s charter capital, up from 3.724%.

Outlook

ACB’s latest capital enhancement signals continued growth ambitions and resilience amid a rapidly evolving banking landscape. As the bank aligns itself with regulatory requirements and future investment strategies, its strengthening ownership base may also signal deeper institutional engagement and long-term confidence in Vietnam’s banking sector.

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Source: Vietnam Insider

Policy Shift: Foreign Stake Raised to 49%

Vietnam has raised the foreign ownership cap in certain private banks from 30% to 49%. This change, enacted via Decree 69/2025/ND-CP effective May 19, 2025, targets banks undergoing restructuring or mandatory transfers (such as MB Bank, HDBank, and VPBank). By allowing nearly half ownership, the government aims to attract more foreign direct investment (FDI) to bolster bank capital, improve governance, and introduce advanced technology in the sector. These banks have recently taken over weaker lenders as part of a broader industry cleanup, and the policy rewards them with greater access to international funding.

Stacks of Vietnam’s ₫500,000 banknotes symbolize the capital influx now possible as foreign investors can own up to 49% of local banks. This policy change is designed to inject substantial new funds into Vietnamese banks, strengthening their balance sheets for growth.

Growth Outlook: Robust Economy and Banking Sector

The timing of this liberalization aligns with Vietnam’s strong economic outlook. The World Bank projects Vietnam’s GDP to grow about 6.8% in 2025, signaling healthy economic momentum. Credit expansion is likewise upbeat – the State Bank of Vietnam targets roughly 16% credit growth in 2025 – which should fuel bank lending revenues. Vietnam’s banks are expected to remain highly profitable, with the sector trading around 1.1× book value and an 18% return on equity projected in 2025. For investors, these metrics indicate attractive valuations and the potential for strong returns as the banking industry expands alongside the economy.

Regional Context: Closing the Gap with Peers

By lifting the cap, Vietnam is catching up to regional peers in openness. Its previous 30% foreign ownership limit was low compared to other Southeast Asian markets. (For instance, Singapore and Malaysia permit up to 100% foreign ownership in banks, and Indonesia allows around 40%.) The new 49% threshold brings Vietnam’s policy more in line with the region, making its banking sector more competitive and accessible to global investors. Crucially, the additional foreign capital will help Vietnamese banks meet Basel III capital standards and adopt international best practices. Regulators expect that partnerships with foreign stakeholders will introduce global expertise, strengthen risk management, and accelerate digital transformation in banking. In short, Vietnam is signaling that its financial sector is “open for business” and committed to modernizing in step with global norms.

Investor Benefits: Influence and Long-Term Gains

For foreign investors, this policy shift opens the door to greater influence and participation in Vietnam’s high-growth banking market. Owning up to 49% of a local bank (versus the previous one-third limit) means a larger say in strategic decisions and corporate governance. Such significant stakes enable deeper partnerships – investors can collaborate on new products, technology upgrades, and management improvements, enhancing long-term value. Recent bank restructurings (e.g. VPBank’s acquisition of GPBank and HDBank’s takeover of DongA Bank) have cleaned up bad assets and paved the way for stronger performance. Now, fresh foreign capital and expertise can build on these improvements. Investors entering Vietnam’s banking sector gain exposure to a fast-growing economy, robust credit demand, and a banking industry with rising profitability. With improved transparency and digital innovation on the horizon, the potential for strong returns and dividends is compelling. Overall, Vietnam’s higher foreign ownership cap presents an exciting opportunity to invest in a reforming, expanding market poised for sustained growth.

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Source: Vietnam Insider

The State Bank of Vietnam has approved an increase in charter capital for Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) by VND 6,000 billion, through the issuance of shares to pay dividends at a 30% rate.

MSB will boost its capital by issuing shares to pay dividends from retained profits, based on the audited financial report as of December 31, 2023, after deducting legally required funds.

The issuance will be at a rate of 30% of total outstanding shares, amounting to an additional 600 million shares.

Post-capital increase, the bank will have a total of 2.6 billion outstanding shares, raising its charter capital to VND 26,000 billion, exceeding $1 billion. This milestone comes over three years after listing on HoSE.

“Increasing our charter capital enhances our competitive position, supports capital buffers, maintains a high capital adequacy ratio (CAR), and promotes credit flow,” an MSB director commented.

In the first quarter, MSB’s total assets reached VND 280,000 billion, a 4% increase from the start of the year. Credit balances rose by over 5%, with customer loans hitting VND 158,000 billion (+4.7%), and customer deposits reaching VND 138,000 billion (+4.1%).

MSB reported a pre-tax profit of VND 1,500 billion in Q1, slightly higher than the same period last year.

For 2024, MSB aims for total assets of VND 280,000 billion, a 5% increase from 2023. Capital mobilized in market I and bonds is expected to reach VND 178,900 billion, up 27% year-over-year.

The bank’s outstanding credit debt is anticipated to grow within the State Bank’s limit, aiming for VND 178,200 billion for the entire year. Pre-tax profit is projected to rise by 17%, reaching VND 6,800 billion.

MSB leaders anticipate challenges in the first half of 2024 but remain confident in achieving their profit goals.

At the 2024 annual shareholder meeting in April, MSB CEO Nguyen Hoang Linh stated that profits generated in 2024, along with retained profits after the charter capital increase, will support a dividend plan of up to 15% in cash or shares, pending approval by the association.

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Source: Vietnam Insider

Vietnam Maritime Commercial Joint Stock Bank (MSB) is one of the banks nearing the ceiling of 30% foreign ownership. As of March 9, the number of shares held by foreign investors at MSB is more than 599.5 million shares, equivalent to a foreign ownership rate of 29.98%.

The reason foreign investors hold a large amount of MSB shares can be explained by the bank’s positive growth rate and asset quality. Over the years, MSB’s total operating income and profit have continued to increase. In 2022, net interest income accounted for nearly 78% of the bank’s total operating income. MSB’s fee income from bancassurance and foreign exchange also contributed significantly to the bank’s growth in the past year.

Vietcombank Securities analysts believe that MSB’s advantages of low deposit costs, high growth rate, and profits from insurance cooperation deals and subsidiary transfers will help the bank supplement capital to develop retail banking and core business activities in the long term.

In 2022, MSB is restructuring its assets by increasing the proportion of lending to individual and SME customers and reducing the proportion of high-risk areas. MSB’s lending structure will shift towards production and distribution of electricity and energy, as well as commercial loans for light industrial goods and consumer goods.

MSB’s demand deposit ratio (CASA) is over 30%, which is one of the highest in the industry. In 2022, the bank’s demand deposit balance is expected to continue growing, and the demand deposit rate reached 31.2%, with the average CASA rate in 2022 at 36%. The high CASA ratio and optimization of capital structure have made MSB one of the few banks to keep NIM growing.

As of December 31, 2022, MSB’s total assets reached more than VND 213,000 billion, an increase of approximately 5% compared to the previous year. The outstanding loan-to-deposit (LDR) ratio was 68.77% (compared to the 85% limit) and the short-term capital ratio for medium and long-term loans of the banking segment was controlled at 23.57% (compared to the requested 37%). The bad debt ratio (NPL) of the banking segment according to Circular 11/NHNN is at 1.21%, and the restructuring debt balance is only about VND 1,400 billion.

Recently, MSB was granted the best credit limit among banks by the State Bank of Vietnam at 13.5%, mainly due to the much lower LDR ratio compared to other banks, according to VNDirect. SSI Securities Joint Stock Company forecasts that the pressure to mobilize capital will be clearer in 2023, when deposit interest rates are expected to increase.

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Source: Vietnam Insider

Seven commercial joint stock banks, namely Vietcombank, VietinBank, BIDV, VIB, ACB, MB, and TPBank, are among the top 50 listed companies in Vietnam.

The seven banks that made the Forbes list of the Top 50 listed enterprises in Vietnam in 2022 all have sustainable growth momentum. These financial institutions have, over time, amassed a sizable reserve of internal resources, developed sustainable growth, strengthened their capital base, and kept their safety and performance metrics among the highest in the industry.

Accordingly, the combined pre-tax profit of the seven aforementioned banks has almost quadrupled over the previous five years, from $1.3 billion in 2016 to $4.34 billion in 2021. Among them, Vietcombank has maintained its profit size lead.

According to the State Bank of Vietnam (SBV), many Vietnamese banks are at the top in terms of digital transformation, with 90 per cent of customer transactions being performed on digital channels, exceeding the previous target of 70 per cent set by the central bank.

Over 90 per cent of all banking transactions now take place via digital channels, and six of the seven best-listed banks have made significant investments to upgrade their technical infrastructure and place them at the top of the rankings.

These seven banks have all now implemented the Basel II standard, maintaining a capital adequacy ratio (CAR) above the SBV’s threshold of 8 per cent.

Four of the private commercial banks on this Forbes list, including VIB, MB, ACB, and TPBank, boast CARs of over 11 per cent. This strong ratio will assist banks in establishing a robust buffer, assuring future sustainable growth momentum.

Another noteworthy aspect is the strategic partnerships that these banks have formed with other prominent financial institutions and organisations, particularly foreign investors, such as Vietcombank – Mizuho (Japan), VietinBank – MUFG (Japan), BIDV – KEB Hana Bank (South Korea), and VIB – Commonwealth Bank (Australia).

This helps those credit institutions construct a strong basis of governance and adopt international know-how, which in turn lays the groundwork for sustainable growth.

By Celine Luu @ VIR

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Source: Vietnam Insider

The banking system and credit institutions are the lifeblood of the nation’s economy, with digital information in banking and finance set to become one of the key factors in the digital economy.

Addressing the an online forum “Digital Finance 2021” held by the Vietnam Financial Times last week, Nguyen Viet Hung, deputy head of the Financial Informatics and Statistics Department, told participants that the digital economy, digital government and digital society were three key pillars that supported the national digital transformation program.

“Digital government helps the government operate more efficiently, effectively and transparently. The digital economy promotes innovation, creates new values, new growth engines and helps increase labour productivity. Digital society helps people have equal opportunities to services, training and knowledge, narrows the development gap and reduces inequality,” Nguyen Viet Hung said.

According to Hung, the process of digital transformation was to build a digital banking ecosystem.

Related: How Covid-19 brings golden conditions for financial industry to accelerate digital transformation

In 2018, Vietnam’s Ministry of Finance built an e-government architecture model to act as an information management and planning tool. Last year, the ministry changed it to an overall e-government architecture model towards the goal of becoming a digital financial ecosystem, in which the Government plays a vital role in creating connections with ministries and agencies through the sharing of digital platform data.

To achieve this, the digital financial ecosystem must be capable of building, integrating and sharing public budget financial data for many subjects, giving them the right of quick access to data via the Internet.

Financial and budgetary data was the raw material for people and businesses to use to create digital services that match their demands and models of businesses and individuals in the fastest manner possible.

Hung said that it was expected that a strongly advanced financial industry in 2030 would become a platform for the development of a digital economy by enhancing the value-added in financial services, and transforming economic models.

Over the past years, the financial sector had gained achievements in administrative reform and in the application of computerization and digitization, Hoang Van Cuong, vice rector of National Economics University said.

In particular, tax management administration and customs have made great strides with a radical change by shifting from paper-based and face-to-face identification and authentication to modern management models by applying information technology in public services arrangements.

The General Department of Taxation has conducted an online tax declaration and payment system, which is connected to commercial banks to implement transactions for tax payments. Switching to online payment has reduced work for customs officers and helped businesses save time and money.

The data showed, around 99 per cent of custom clearance procedures are made online. The ease of online tax payment has pleased the business community and new payment methods have prevented errors and ensured immediate cargo clearance.

The World Bank has also acknowledged the efficiency of the electric customs clearance process conducted by Vietnam Customs. It has helped cut time, and costs worth US$200 million per year.

This not only saved time, costs and human resources for businesses and citizens, but also enhanced awareness and transparency. It also helped changing methods of communication, minimizing negative behaviors, creating a favorable business climate for businesses as well as luring foreign investors to do business in Vietnam, according to Hoang Van Cuong.

Amid the COVID-19 pandemic, digital transformation is no longer an option but a critical need for all businesses and countries. The pandemic forces businesses to transform from traditional to new economic models with the application of new technologies, Vietnam News Agency reported.

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Source: Vietnam Insider

Nowadays, digital transformation is essential to all banks in Vietnam, regardless of size. Digital transformation in the banks can help to optimize their current processes, and enhancing customer experience – in order to stay competitive and relevant in the new customer-centric economy.

Military Commercial Joint Stock Bank (MBBank) has a number of outstanding digital products that greatly contributed to its high growth in the first six months of 2021.

“By the end of June 2021, the total asset of MB Group (including MBBank and subsidiaries) reached more than VNĐ524 trillion (US$22.7 billion), increasing 5.9 per cent from the beginning of the year. Of which, credit rose by 10.5 per cent to VNĐ340 trillion”, MBBank’s CEO Luu Trung Thai said in a meeting to review the bank’s business performance in the first six months of the year.

With this result, the bank has maintained the top 5 in terms of total assets and profit before tax. MBBank has also enjoyed a top business performance in the period with a return on asset (ROA) ratio of 2.48 per cent and a return on equity (ROE) ratio of 23.28 per cent.

The bank’s indicators of governance also maintained good levels.

More specifically, the cost-to-income ratio (CIR) reached about 28.6%, the non-interest income ratio reached more than 30%, while the average before-tax profit per capita was 1.6 times higher than the same period last year.

Most notably, MBBank posted a record low bad debt ratio of 0.76 per cent in the first half of the year. This has been also the lowest level in the banking industry.

The ratio of the risk reserve fund to bad debts of MBBank reached 311 per cent, more than double the level at the end of 2020. This means the bank has a very high “defensive” ability when having bad debts. With the above results in terms of safety in terms of credit quality, MBBank and Vietcombank are the two banks with the highest ratio of bad debt provision in the entire banking industry.

MBBank’s CEO also said its newly issued international credit card market share reached 17 per cent in the period, the highest level in the country. The subsidiary companies of the bank also saw high business results, like Military Insurance Corporation (MIC) becoming among the top five insurers in the country.

Since the beginning of the year, MBBank has also recorded many outstanding products and services related to digital transformation that have helped the banking business results to grow strongly such as MB SmartBank; the first bank to launch an account number with the same phone number opened right on the app via eKYC; International money transfer right on the bank’s App, etc. It is expected that this year, MBBank will record 5 million users using the new App, 3 times higher than the number of new users in 2020.

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Source: Vietnam Insider