Vietnam's banking sector braces for 2025 restructuring as private lenders dominate
Vietnam's banking sector is entering a critical phase of restructuring in 2025. State-owned lenders like VietinBank and BIDV are facing growing competition from private rivals, which now control over half the market in loans and deposits. A fresh policy push and a wave of leadership changes are reshaping strategies as banks prepare for the next growth cycle.
Private banks have steadily gained ground since 2020, expanding their market share from around 40% to over 55% by 2025. Agile players like Techcombank and VPBank have outpaced state-owned rivals through digital innovation, better customer service, and aggressive expansion. The COVID-19 recovery also favoured faster-moving private lenders over bureaucratic state banks.
The government's Resolution 79-NQ/TW now allows state-owned banks to retain post-tax profits to boost charter capital and reinvest. This policy shift aims to strengthen their financial footing. Pham Thi Hong Anh, a banking expert, expects it to help these institutions raise capital sustainably and improve their capital adequacy ratios.
The 2025 AGM season has become a 'capital race', with major state lenders rushing to reinforce their positions. VietinBank and BIDV will hold their shareholder meetings on April 24, while Vietcombank's is set for later in the month. Vietcombank currently leads in charter capital after issuing a 49.5% stock dividend, placing VietinBank and BIDV in fourth and sixth positions respectively.
Mergers and acquisitions are also drawing attention. BIDV's private placement and Vietcombank's share sale have sparked investor interest. Meanwhile, leadership changes—such as Eximbank's board overhaul and Sacombank's new CEO—signal deeper organisational shifts.
Despite a tougher economic outlook, banks are unveiling ambitious plans for 2026. Nguyen Thanh Tung, another industry analyst, stresses that both capital scale and quality will be key to future growth.
State-owned banks are now focusing on restructuring to regain lost ground and secure their market positions. With new policies enabling profit retention and a surge in capital-raising efforts, the sector is bracing for a competitive push. The outcomes of upcoming AGMs and strategic mergers will likely set the tone for Vietnam's banking landscape in the years ahead.
