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Vietnam's Banking System Sees Rapid Credit Growth Amid Economic Uptick

Strategic Insights

— 2 min read

The Vietnamese banking system has reported a substantial increase in credit growth, with a 10% increase after seven months, significantly higher than the 6% recorded in the same period in 2024. The State Bank of Vietnam (SBV) revealed that the total outstanding loans of 27 listed banks and the Vietnam Bank for Agriculture and Rural Development (Agribank) stood at some 14.94 quadrillion VND (574.6 billion USD) by the end of the second quarter, up more than 10% compared to the end of 2024.

Key Takeaways:

  • The Big 4 banks - BIDV, VietinBank, Vietcombank, and Agribank - dominate the market with a combined market share of over 50%, equivalent to about 7.5 quadrillion VND in outstanding loans.
  • VietinBank saw a credit growth rate of around 10%, Agribank 7.6%, Vietcombank 7%, and BIDV 6% compared to the year's beginning.
  • Several banks have posted credit growth far exceeding the industry average, including NCB, which hit 90.4% of its annual loan portfolio target after six months.
  • Experts warn that excessive capital concentration in high-risk sectors like real estate and securities risks imbalances and non-performing loans.
  • Assoc. Prof. Dr. Pham Thi Hoang Anh urges commercial banks to strike a balance between expanding loan portfolios and maintaining credit quality.
  • SBV Governor Nguyen Thi Hong stressed that real estate credit growth outpacing the average is consistent with the policy of supporting this market, but emphasized the need to balance funds by maturity to ensure system safety.

Statistics:

  • Total outstanding loans of 27 listed banks and Agribank stood at some 14.94 quadrillion VND (574.6 billion USD) by the end of the second quarter, up more than 10% compared to the end of 2024.
  • The Big 4 banks - BIDV, VietinBank, Vietcombank, and Agribank - account for 50% of the market share, with approximately 7.5 quadrillion VND in outstanding loans.
  • NCB's loan portfolio hit 90.4% of its annual target after six months.
  • Real estate credit stood at around 3.18 quadrillion VND by June 30, 2.4 times higher than at the end of 2024 and accounting for 18.5% of the system's total outstanding loans.
  • Margin lending for stock purchases reached a record high of about 303 trillion VND.

Sources:

  • State Bank of Vietnam (SBV)
  • Vietnam Bank for Agriculture and Rural Development (Agribank)
  • BIDV, VietinBank, Vietcombank, and NCB
  • Assoc. Prof. Dr. Pham Thi Hoang Anh, Deputy Director of the Banking Academy's Board of Directors
  • Assoc. Prof. Dr. Nguyen Thuong Lang, senior lecturer at the National Economics University
  • SBV Governor Nguyen Thi Hong

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