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Credit boom, rule shifts fire up Vietnam banks’ capital-raising sprint

High system leverage, however, may leave them vulnerable to economic shocks, say analysts

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Jamille Tran

Jamille Tran

Published Fri, Dec 5, 2025 · 09:34 AM
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    • State-owned commercial banks, which hold the largest market share and play a critical role in funding large public projects, face greater pressure to raise capital, say analysts.
    • State-owned commercial banks, which hold the largest market share and play a critical role in funding large public projects, face greater pressure to raise capital, say analysts. PHOTO: BLOOMBERG

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    [HO CHI MINH CITY] Vietnam’s banks are starting on a capital-raising sprint, driven by fresh regulatory changes and surging credit demand as the country chases ambitious double-digit growth in the coming years, said analysts.

    Banking system-wide lending – the primary financing channel for the country’s economic growth – expanded nearly 15 per cent in the year through October, the fastest pace in five years. 

    Analysts are forecasting a full-year credit growth of 18 to 20 per cent, powered by the US Federal Reserve’s monetary easing and a domestic low-rate environment to support the economy. The initial target was 16 per cent growth.

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