Billions of new Big 4 bank shares set to hit Vietnam market as government pushes for capital hikes

Vietnam’s Big 4 banks which are state-controlled, including Vietcombank, VietinBank, BIDV, and Agribank, are preparing to issue tens of billions of new shares as stock dividends, following a government directive to accelerate charter-capital expansion.

VietinBank said it will finalize its shareholder list on December 18 to issue nearly 2.4 billion shares as dividends from retained earnings in 2021, 2022, and 2009-2016.

The issuance, equivalent to a ratio of 44.64% (shareholders will receive 44.64 shares for every 100 shares they own), will be the banking sector’s largest stock-dividend payout this year.

VietinBank’s charter capital will rise by almost VND24 trillion (over $910 million) to nearly VND77.67 trillion ($2.95 billion).

The move follows the Government's Resolution 273, which instructs the State Bank of Vietnam to speed up capital increases at state-owned banks to support national economic targets for 2025 and double-digit GDP growth in 2026-2030.

Vietcombank and BIDV also have major capital-raising plans pending approval.

Vietcombank intends to use all of its remaining profits from 2022 (VND21.68 trillion or $822.2 million) and 2023 (VND22.77 trillion or $863.5 million) for stock dividends, which would lift its charter capital above VND100 trillion ($3.79 billion) once approved.

At its 2025 AGM, BIDV approved a plan to raise charter capital by VND21.66 trillion (VND821.24 million) to nearly VND91.9 trillion ($3.48 billion), through issuing bonus shares, stock dividends, and new shares.

The bank plans to issue up to 498.5 million bonus shares (7.1% of outstanding shares as of March 31) and up to 1.397 billion shares for dividends (19.9%).

Military-run MB boosted its charter capital from over VND61.02 trillion to VND80.55 trillion ($3.05 billion) in August after a 32% stock-dividend issuance.

The capital-raising wave has also spread to private lenders. VietABank has secured approval for a 41% capital hike to VND11.5 trillion ($435.9 million) through issuing shares to existing shareholders and ESOP (employee stock ownership plan) shares.

TPBank received approval in October to lift capital to VND27.74 trillion ($1.05 billion) via issuance of 132 million shares as dividends at a ratio of 5%.

HDBank has raised capital to VND38.6 trillion ($1.46 billion) after converting bonds and issuing 20% stock dividends. SHB is seeking shareholder approval for a further VND7.5 trillion ($284.4 million) increase in 2025.

According to financial data provider FiinGroup, the banking sector’s price-to-book ratio stands at 1.6 times, 20% below its three-year peak in October 2025, returning to valuation levels seen in late 2023-mid-2025.

Leading private banks (VPBank, Techcombank, MB) and smaller lenders (LPB, SHB, ABB) have posted strong P/B expansion, driving share-price gains. In contrast, state-owned banks (BIDV, Vietcombank, VietinBank) have seen muted or lower valuations despite book-value growth.

Analysts warn that near-term profit headwinds may pressure valuations, particularly for stocks that have surged sharply.