Bank stocks 'hot' following soaring gold prices

On the morning of August 27, the Vietnamese stock market witnessed a strong increase in banking stocks, contributing to pushing the VN-Index to a new historical peak.

At 9:00 a.m., VPBank (VPB) shares increased by VND800 to VND35,100/share, after increasing by 2.4% in the previous session. VietinBank (CTG) increased by VND1,100 to VND52,300/share. Vietcombank (VCB) increased by VND700 to VND65,300/share. Sacombank (STB) increased by VND500 to VND55,500/share. MBBank (MBB) increased by VND750 to VND28,300/share. SeABank (SSB) increased by VND400 to VND22,200/share. BIDV (BID) increased by VND600 to VND42,400/share.

At 9:50, VCB shares increased to the ceiling price by 4,500 VND to 69,100 VND/share and maintained until the end of the morning trading session.

The banking group increased for two consecutive sessions after a series of adjustments and is now nearing its historical peak. These stocks continue to be the pillars of the stock market, helping the VN-Index increase by more than 17 points in the first session of August 27, setting a new historical peak.

Previously, VN-Index increased 53.6 points (+3.32%) to 1,667.63 points in the session on August 26.

The attraction of bank stocks comes from impressive business results in recent quarters. Credit growth in the first 7 months of the year reached a very high level, with cash flow being strongly injected into the economy , supporting lending activities and bank profits.

In addition, this group also benefits from the new policy: eliminating the monopoly on gold bar production, exporting raw gold and importing raw gold to produce gold bars.

According to Decree No. 232/2025/ND-CP dated August 26, 2025 amending Decree 24 of 2012, the State abolishes the monopoly mechanism, opening the door for enterprises and banks to participate. Enterprises need a minimum charter capital of VND 1,000 billion, banks need VND 50,000 billion, and must have a precious metal trading license from the State Bank and not violate regulations.

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The government officially abolished the monopoly on gold bar production. Photo: Kitco

Gold production and trading is an attractive industry thanks to the market's appeal, and gold prices have recently increased rapidly. Since the beginning of the year, the world spot gold price has increased by about 28%, reaching nearly 3,390 USD/ounce on the morning of August 27.

Meanwhile, the price of SJC gold bars increased by about 50%, reaching 128 million VND/tael. The price of SJC is currently about 19 million VND/tael higher than the converted world price, while the price of gold rings is about 13 million VND/tael higher.

World gold prices are forecast to continue to increase as the US Federal Reserve (Fed) may return to a loose monetary policy, with an 87% probability of cutting interest rates by 0.25% at its meeting on September 17 according to the CME FedWatch tool, causing the USD to decline and gold to become a more attractive safe haven asset.

Big banks have bright prospects thanks to existing ecosystems

The abolition of the monopoly opens up great opportunities for banks to participate in the production of gold bars, export and import of raw gold, helping to diversify revenue sources and take advantage of rising gold prices.

With attractive profit margins from gold trading - especially when domestic prices are higher than international prices - banks can increase revenue from transaction fees, production and import and export, while reducing the risk of price fluctuations by controlling the supply chain. In the context of economic instability, gold also helps banks consolidate their position as a safe investment channel for customers.

Based on the current charter capital scale, some banks that are eligible to participate are Vietcombank, BIDV, VietinBank, Agribank, VPBank, Techcombank, MB and ACB - all of which exceed the VND50,000 billion mark. These banks must also meet the conditions of having a precious metal trading license and not violating the law, but with their large position, the possibility of being granted a license is high.

In fact, many banks already have a gold-related ecosystem, making it easy for them to "enter the game". Typically, VietinBank (CTG) owns 100% of the capital of Vietnam Joint Stock Commercial Bank for Industry and Trade Gold and Gemstone Company Limited (VietinBank Gold), which was granted a business registration certificate in November 2010 and is accounted for as a subsidiary. This makes VietinBank the most promising candidate, ready to produce gold bars with its existing experience.

Similarly, Sacombank (STB) has Saigon Thuong Tin Commercial Bank Gold and Gemstone Company Limited (Sacombank - SBJ), a subsidiary established in 2008 with a capital of VND200 billion, 100% owned by Sacombank. This legal entity can support Sacombank in expanding into gold production and import and export.

Although not directly recorded in financial statements, some banks have close relationships with gold businesses. TPBank (TPB) is closely associated with Doji Gold and Gemstone Group JSC - a major shareholder holding more than 5.9% of TPBank shares. Mr. Do Minh Phu, Chairman of TPBank's Board of Directors, is also Chairman of Doji's Founding Council, creating an advantage for cooperation.

The case of SeABank (SSB) with ASEAN Gold and Gems JSC (AJC) is also noteworthy. AJC was originally a subsidiary of Agribank, and after the auction in 2008, SeABank participated as a strategic shareholder. By 2017, when Agribank divested, AJC's major shareholder was Thung Lung Vua Company Limited (under BRG Group of Ms. Nguyen Thi Nga, Permanent Vice President of SeABank). This relationship created conditions for SeABank to take advantage of AJC's experience in participating in the gold market.

In addition, ACB - with large capital and previous experience operating gold trading floors - is also a potential name. Overall, participating in gold production not only brings direct profits but also strengthens the bank's position in the financial ecosystem, especially when gold prices are expected to continue to increase.

Two shocks at the weekend: Gold price skyrockets, will SJC reach 130 million VND? World gold prices reversed and increased sharply at the weekend after the Fed signaled a rate cut and Russia-Ukraine tensions escalated again. Domestically, SJC set a record of 126.6 million VND/tael.

Source: https://vietnamnet.vn/gia-vang-len-128-trieu-xoa-bo-doc-quyen-them-cu-hich-cho-loat-dai-gia-2436565.html