In 2024, the economy expanded by just 7.09%, yet total credit grew by a striking 15.08%, reaching VND 15.6 quadrillion (approx. USD 615 billion)—an increase of VND 2.1 quadrillion year-on-year. Should credit efficiency remain unchanged, the annual credit growth rate may need to exceed 20% throughout the next decade to meet the government’s targets.
The stakes are particularly high given that high-tech industries—identified as the primary engine of growth over the next ten years—are also among the most capital-intensive. Meanwhile, Vietnam’s private sector remains heavily reliant on bank financing. This dual dynamic places the country’s commercial banking system in the crosshairs: it must expand credit aggressively while maintaining prudent risk management, controlling non-performing loans (NPLs), and preserving financial stability.
Capital Buffers and Consolidation
One clear imperative is to strengthen the financial base of the banking sector. As of 31 December 2024, the total charter capital of 28 domestic commercial banks reached VND 823.5 trillion (around USD 33 billion), a 15.23% increase from the previous year. Sixteen of these institutions now boast capital levels above USD 1 billion, compared with 12 in 2023. Twenty banks increased their capital last year.
VPBank retained its lead with charter capital of VND 79.3 trillion, followed by Techcombank (VND 70.5 trillion), BIDV (VND 69 trillion), Vietcombank (VND 55.9 trillion), VietinBank (VND 53.7 trillion), MB (VND 53.1 trillion), Agribank (VND 51.6 trillion), ACB (VND 44.7 trillion), SHB (VND 38.1 trillion), and HDBank (VND 35.1 trillion). In contrast, seven banks reported capital levels below VND 10 trillion, with Saigonbank (VND 3.4 trillion) and KienlongBank (VND 3.7 trillion) at the bottom of the scale.
This hierarchy is poised for disruption. Vietcombank recently announced plans to issue nearly 2.77 billion shares, which, if successful, would lift its capital base to approximately VND 83.6 trillion—overtaking current leader VPBank.
To maintain momentum, the government must press ahead with the equitisation of the “Big Four” state-owned banks—Vietcombank, BIDV, VietinBank, and Agribank—while incentivising privately owned banks to attract strategic investors, both foreign and domestic. Smaller banks, meanwhile, may need to merge in order to boost capital reserves organically. Policymakers have floated a medium-term goal of reducing the number of commercial banks to around 25, each with minimum capital of USD 1 billion. Of these, three to five banks are expected to attain a charter capital of roughly USD 4 billion.
Deposit Growth: Playing Catch-Up
Despite record-breaking results in 2024, banks continue to face a significant mismatch between deposit growth and credit expansion. The 26 banks that published deposit figures reported a combined total of VND 12.85 quadrillion—up 12.89% from 2023.
The “Big Four” again dominated. Agribank led the pack, mobilising over VND 2 quadrillion, followed by BIDV (VND 1.93 quadrillion), VietinBank (VND 1.6 quadrillion), and Vietcombank (VND 1.52 quadrillion). Together, they accounted for 56% of the total deposit market.
Other notable players included MB (VND 714.1 trillion), Sacombank (VND 561.7 trillion), ACB (VND 539.1 trillion), Techcombank (VND 536.7 trillion), SHB (VND 496.1 trillion), and VPBank (VND 485.7 trillion). At the opposite end of the spectrum, Saigonbank reported the lowest deposit base at just VND 25 trillion.
However, this growth still lags behind the surging demand for credit. As of March 2025, the gap between loans and deposits had ballooned to VND 1 quadrillion—posing liquidity risks for the sector. If banks fail to attract deposits at a faster pace, particularly from households, they will struggle to maintain credit supply without tapping more expensive or riskier funding sources. In a competitive financial landscape, where capital also flows into real estate, equities, gold, and foreign currencies, the banking sector’s ability to mobilise savings efficiently is critical to macroeconomic stability.
Lending Capacity: Strained but Expanding
Vietnam’s lending activity remains heavily concentrated. In 2024, 26 commercial banks—excluding Eximbank, VietBank, and five underperforming institutions—reported total loans outstanding of more than VND 13.03 quadrillion. The Big Four accounted for 47% of this figure.
BIDV led with VND 2.01 quadrillion in lending, followed by Agribank (over VND 1.72 quadrillion), VietinBank (VND 1.71 quadrillion), and Vietcombank (VND 1.43 quadrillion). Among joint-stock commercial banks, MB ranked fifth with VND 734.6 trillion, ahead of VPBank (VND 615.9 trillion), Techcombank (VND 605.8 trillion), ACB (VND 569.7 trillion), Sacombank (VND 526.8 trillion), and SHB (VND 506.1 trillion). Saigonbank posted the lowest figure, with loans of just VND 20 trillion, equivalent to a mere 0.16% of the total.
The lending landscape illustrates a significant divergence between state-owned and privately owned banks. While the Big Four dominate in absolute terms, joint-stock banks have played an outsized role in driving credit growth. Despite controlling just 44% of total deposits, they accounted for 53% of total lending—highlighting both their aggressive lending strategies and the structural imbalances that persist within Vietnam’s banking architecture.
A Decade of Financial Reckoning Ahead
Vietnam’s push for rapid, innovation-led growth over the next decade hinges critically on the capacity of its banks to channel capital into the right sectors at the right time. Yet that ambition brings with it systemic risks. The sector must brace for potential stress from elevated credit expansion, uneven liquidity conditions, and capital adequacy challenges—especially if global financial conditions tighten or domestic inflation accelerates.
To avoid a funding squeeze, Vietnamese banks must not only boost deposits and capital buffers but also recalibrate their risk models to suit the complexities of a rapidly evolving economy. That includes enhancing internal governance, strengthening digital infrastructure, and ensuring greater transparency to attract long-term investors.
Unless these reforms are implemented in earnest, the banking system may soon find itself buckling under the weight of Vietnam’s economic ambitions.
