"Big 4" banking group plans to increase capital

In fact, state-owned commercial banks hold about 42% of the total assets of the entire credit institution system, but their charter capital only accounts for about 20%. Meanwhile, joint-stock commercial banks own 45% of the total assets, but account for 65% of the total charter capital of the entire system.

BIDV promotes capital increase - Illustration photo — BIDV plans to increase capital by an additional VND21,656 billion. Illustrative photo

The capital mobilization market share of the state-owned commercial banks also decreased sharply, from 74% in 2004 to 46% in 2024. Similarly, the credit market share decreased from 76% to 46%. One of the biggest bottlenecks causing the leading role of the state-owned commercial banks to decline is low charter capital, while these banks face many difficulties in increasing capital.

Accordingly, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has finalized the list of shareholders to issue nearly 2.4 billion shares to pay dividends from the remaining profits of 2021, 2022 and the period 2009 - 2016, equivalent to a rate of 44.64%. This is the highest rate of share issuance through dividend payment in the banking industry in 2025 (after Vietcombank with a rate of 49.5%). After issuance, VietinBank's charter capital is expected to increase by nearly VND 24,000 billion, to about VND 77,670 billion.

For the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the general meeting of shareholders also approved the plan to issue individual shares to increase charter capital. Specifically, Vietcombank offered a maximum of 543.1 million shares to 55 investors, including strategic investors and professional securities investors, equivalent to 6.5% of outstanding shares.

Vietcombank's Board of Directors also approved a plan to use all of the remaining 22,770 billion VND in profits in 2023 to pay stock dividends. Previously, the bank was also approved to distribute 21,680 billion VND in remaining profits in 2022 for the same purpose.

These stock dividend payment plans are awaiting approval from the authorities. If approved, Vietcombank could soon increase its charter capital to over VND100,000 billion. Previously, in mid-2025, Vietcombank paid stock dividends at a ratio of 1,000:495 (49.5%), increasing Vietcombank's charter capital by more than VND27,666 billion, to VND83,557 billion, the highest in the industry.

Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) also plans to increase its capital by VND21,656 billion to nearly VND91,870 billion, equivalent to an increase of 30.8% through increasing capital from the charter capital supplement reserve fund, paying dividends and issuing additional capital.

Accordingly, the bank plans to issue more than 498.5 million bonus shares (equivalent to 7.1% of outstanding shares) and nearly 1,397.3 million dividend shares from undistributed accumulated profits in 2023, equivalent to a rate of 19.9%.

With the plan to increase capital from the reserve fund to supplement charter capital, BIDV plans to issue a maximum of more than 498.5 million shares, equivalent to 7.1% of outstanding shares. With the plan to pay dividends in shares from undistributed accumulated profits in 2023, the bank plans to issue nearly 1.397 billion shares, equivalent to 19.9% of outstanding shares.

The plan to offer shares to investors through private or public issuance, with a maximum number of 269.8 million shares, equivalent to 3.84% of outstanding shares. Previously, in February, BIDV completed a private issuance of 123.8 million shares to four international investors and one domestic investor, thereby increasing its charter capital to VND70,213 billion.

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