Investment funds bullish on Vietnam bank stocks amid stable macro outlook
With Vietnam’s macroeconomic environment showing signs of stability, bank stocks - a field often regarded as the “backbone” of the economy - have emerged as a top pick among investment funds.
Investment funds hold sizable bank stock proportions
Banking or financial stocks consistently make up a significant portion of most equity funds’ portfolios, according to disclosures on funds’ websites.
A survey by The Investor also revealed many funds with bank/financial sector holdings exceeding 40% of total assets, including the BaoViet Equity Dynamic Open-Ended Fund (BVFED), United Vietnam ESG Equity Fund (UVEEF), BaoViet Prospect Equity Open-Ended Fund (BVPF), Mirae Asset Vietnam Growth Equity Fund (MAGEFGE), VinaCapital Equity Opportunity Fund (VEOF), and Eastspring Investments Vietnam ESG Equity Fund (EVESG).
Funds with over 30% weight make up the majority, featuring names like Thanh Cong Growth Fund (TCGF), VCBF Tactical Balanced Fund (VCBF-TBF), DC Dividend Focus Equity Fund (DCDE), and VinaCapital Modern Economy Equity Fund (VMEEF).

Bank stocks remain a favorite among investment funds. Photo by The Investor/Trong Hieu.
The five stocks with largest portfolio proportions at equity funds are bank stocks, especially those in the VN30 Index which reflects the 30 largest blue chips on the Ho Chi Minh Stock Exchange (HoSE).
Specifically, TCB of Techcombank, STB of Sacombank, and CTG of Vietinbank rank among the top five holdings in the portfolio of DC Dynamic Securities Fund (DCDS) managed by Dragon Capital – a leading foreign-run asset management firm in Vietnam.
Similarly, Vietcombank Fund Management Company Limited (VCBF) - a joint venture between Vietcombank and U.S.-based Franklin Templeton Investments (FTI) - holds significant stakes in MBB of MBBank, STB, and CTG.
Lighthouse Capital (LHCDF) draws attention as its largest portfolio holding is Nam A Bank’s NAB (HoSE), a non-VN30 bank stock.
Huynh Hoang Phuong, an investment-finance expert, explained that in developing Asian economies, including Vietnam, economic growth heavily relies on bank capital, as capital markets are not yet developed well enough.
This dynamic positions the banking sector as the backbone of the economy, with growth closely tied to credit expansion and banking system development, he said.
While the banking industry faces cyclical headwinds during economic downturns, its long-term growth trajectory remains dominant. From 2018 to 2024, the combined profits of 27 banks listed or registered for trading surged 226.4%, reflecting a compound annual growth rate of 21.8%.
Nguyen Duy Anh, portfolio management director at VCBF, noted that equity funds benchmark their returns against specific indices such as the VN-Index that represents the HoSE; VN100 that tracks 100 high-liquidity, large-cap stocks; or VN30, depending on their investment strategies.
The banking sector consistently accounts for 25% to 40% of major Vietnamese indices, making heavy bank stock exposure common in fund portfolios.
Moreover, current valuation metrics for several banks remain relatively attractive, potentially fueling near-term fund performance.
Bright outlook for bank stocks
Bank stocks have posted strong gains in 2025, playing a key role in driving the benchmark VN-Index to repeated record highs. Data from broker Vietcap Securities shows that bank stocks went up 25.87% year-to-date.
Five of the top 10 stocks with most positive impact on the VN-Index are banks, including TCB (contributing 21.9 points), VPBank’s VPB (20.73 points), MBB (14.85 points), CTG (12.34 points), and Saigon-Hanoi Commercial Joint Stock Bank’s SHB (8.76 points).
Looking ahead, Phuong expected bank profits to remain robust in H2, providing strong support for overall market earnings growth. This outlook is supported by rapid industry-wide credit growth of 9.9% in H1, alongside easing pressure on net interest margins (NIM), which are not projected to contract further.
Phuong held that the pressure in H2 will not be significant, as preliminary business results from banks show an improving trend in Q2. Consequently, NIM in H2 is forecast to decline less sharply year-on-year compared to H1.
“Therefore, I believe the banking sector’s earnings in the latter half of 2025 will show solid growth, albeit with some differentiation. Banks with weaker asset quality could benefit from recovery efforts, while state-owned banks may see improved results despite sacrificing significant NIM to support the economy.”
Meanwhile, Duy Anh noted that profit disparities within the banking sector will persist through the remainder of the year, as seen in H1. However, he expected this gap to narrow as major banks shift their business strategies to better align with market conditions, as well as the gradual recovery of the SME sector.
Offering advice to investors on selecting bank stocks, experts emphasized focusing on large banks with strong liquidity, high-quality assets, and solid profit growth.
Phuong outlined key criteria funds consider when selecting bank stocks, noting a preference for large banks due to their strong liquidity, greater sector representation, and distinct competitive advantages.
Asset quality and its future outlook are also closely monitored when curating watchlists. Profit growth plays a vital role in portfolio allocation and rebalancing among bank stocks.
Additionally, Anh of VCBF recommended investors focus on banks leading in technology adoption within their business models, from meeting customer needs and retention to building comprehensive ecosystems that allow customers to handle all transactions via the bank’s app.
He also suggests monitoring banks with strong sales teams and diversified financial services, enabling them to generate non-interest income streams.
- Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7
Sun Group, US Embassy foster aviation-hospitality cooperation
Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.
Companies - Mon, September 15, 2025 | 9:54 pm GMT+7
Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1
Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.
Companies - Mon, September 15, 2025 | 8:10 pm GMT+7
Central Vietnam to have new airport Mang Den
Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.
Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.
Economy - Mon, September 15, 2025 | 2:20 pm GMT+7
Agribank introduces sizable $4.17 bln preferential credit package
Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.
Companies - Mon, September 15, 2025 | 1:32 pm GMT+7
'Precious space' in Vietnam's monetary policy
The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.
Economy - Mon, September 15, 2025 | 10:15 am GMT+7
Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS
The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).
Banking - Mon, September 15, 2025 | 8:04 am GMT+7
Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026
A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.
Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7
- Consulting
-
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
-
The ASEAN trade puzzle: Smart moves in a shifting landscape
-
Vietnam’s breakthrough opportunity against world-wide US tariff wave
-
Trump trade mayhem to steepen yield curve and weaken US dollar
-
Navigating tariff shocks: Vietnam’s path forward through diversification
-
Southeast Asia IPO performance in Jan-June