Vietnam plans to inject 20.695 trillion dong (approximately $815 million) into Vietcombank, the largest state-owned commercial bank, to enhance its capacity in supporting government initiatives, as announced by the Deputy Prime Minister on Wednesday.
This initiative aligns with the banking sector development plan for 2025 and the restructuring and bad debt resolution strategy for 2021-2025, Deputy Prime Minister and Finance Minister Ho Duc Phoc told parliament.
“It is essential for Vietcombank to have adequate resources to back government policies, restructure weak institutions, and contribute to the stability of the banking sector and the economy,” Phoc stated.
He also noted that the additional capital would enable Vietcombank to strengthen its financial capacity for international expansion and position itself as one of Asia’s leading banks.
The State Bank of Vietnam (SBV), the nation’s central bank, holds a 74.8% stake in Vietcombank, according to LSEG data.
Last week, the SBV announced that Vietcombank would acquire the smaller Construction Bank as part of its restructuring efforts to address non-performing loans.
Phoc mentioned that the government would finance this capital injection using dividends received from Vietcombank in 2018 and the bank’s retained earnings from 2021.
Vietnam’s parliament is set to vote on the plan on November 30. Shares of Vietcombank, which has a market capitalization of $20.2 billion, rose by 0.11% to 91,500 dong on Wednesday.
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