Vietnam banks race to raise capital ahead of new growth cycle

Vietnamese banks are embarking on a major capital-raising drive in 2026, as the sector prepares for tighter regulatory standards and a new growth cycle amid expectations that the country’s stock market will be upgraded to "secondary emerging" status.

From state-owned lenders to domestic private banks, tens of trillions of dong (VND10 trillion = $381.68 million) in charter capital have been added in the first months of the year, driven by pressure to comply with Basel II requirements and move towards Basel III.

State-controlled VietinBank fired the opening shot, completing the issuance of more than 2.4 billion shares to pay a 44.6% stock dividend early in 2026. The move lifted its charter capital to nearly VND77.67 trillion ($2.96 billion) from VND53.7 trillion, among the largest increases in the system.

The capital boost is expected to significantly improve VietinBank’s capital adequacy ratio (CAR) and create additional room for credit growth as demand for funding in the economy is forecast to recover.

Analysts at SSI Securities said raising capital through retained earnings was “an optimal solution in a context of limited state budget resources, balancing shareholder interests with sustainable financial strengthening”.

Big state lenders expand buffers

Vietcombank continues to signal its ambition to maintain its position as the system’s most profitable lender with the highest asset quality. In 2026, the bank plans a private placement of around 543 million shares, equivalent to 6.5% of its charter capital, to a strategic investor.

If combined with remaining stock dividend plans, Vietcombank’s charter capital is expected to exceed VND100 trillion ($3.82 billion) - a symbolic milestone for Vietnam’s banking sector.

BIDV bank's chief economist Can Van Luc said capital increases at large banks such as Vietcombank are aimed not only at meeting higher Basel standards but also at preparing for mergers and acquisitions (M&A), technology investment, and expansion into green and sustainable finance.

BIDV has approved a plan combining a private placement with stock dividends to lift its charter capital to about VND91.87 trillion ($3.51billion), intensifying competition with Vietcombank for the top spot by charter capital size.

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The move will help ease pressure on BIDV’s CAR, which has been strained by its large asset base, and is seen as a prerequisite for meeting Basel III standards over the medium term.

Domestic private banks join the drive

Domestic private lenders are also stepping up capital-raising efforts.

SHB said it has received approval from the central bank to raise its charter capital to over VND53.44 trillion ($2.04 billion) through a combination of a rights issue, a private placement for professional investors and an employee share ownership plan (ESOP). Once completed, SHB is expected to rank among the top four private joint-stock banks by charter capital.

Nam A Bank plans to increase its charter capital to nearly VND22.59 trillion ($862.14 million), up over VND5.43 trillion through bonus shares, ESOP issuance, and a private placement, supporting its push into digital banking and network expansion.

ABBank has announced a rights issue at a ratio of 100:30, raising an additional VND3.11 trillion ($118.51 million) and lifting charter capital to nearly VND13.46 trillion ($513.55 million), a move aimed at strengthening financial capacity amid intensifying competition.

HDBank expects to raise its capital to over VND50.05 trillion ($1.91 billion) through stock dividends and bonus shares, with a total issuance ratio of nearly 30%. Analysts view the strategy of retaining profits as appropriate given the bank’s steady earnings growth in recent years.

Three key trends

Analysts identify three major trends shaping the 2026 capital-raising wave.

First, banks are prioritizing stock dividends over cash payouts, using retained earnings from a strong 2025 to boost capital while preserving long-term financial strength.

Second, banks are stepping up efforts to attract foreign capital. Expectations of a stock market status upgrade are increasing Vietnam’s appeal to overseas investors, with private placements at Vietcombank, BIDV and SHB seen as gateways for greater foreign participation.

Third, additional capital is increasingly earmarked for technology investment and green lending, including digital transformation, comprehensive digital banking and financing for renewable energy and circular economy projects.

Economist Can Van Luc said the 2026 capital race is “not merely about scale, but about preparing for a new growth cycle”, where capital quality, risk governance and digital transformation will determine each bank’s competitive position.

While the wave of capital raising creates opportunities for investors through rights issues and private placements, short-term dilution risks remain a factor to watch.

In a context of macroeconomic stability, controlled inflation and rising expectations of a stock market status upgrade, bank stocks are still viewed as the backbone of Vietnam’s equity market in 2026, though analysts expect stronger differentiation in favor of lenders with sound governance, high asset quality and clear digital strategies.