Title: Vietnam's Banks Launch Largest-Ever Capital Raising Wave — Nearly $7 Billion in Share Sales
October 7, 2026
Reuters reported on October 7 that Vietnamese banks are planning nearly $7 billion in share sales, to be completed by the end of next year. Based on Reuters' calculations from public disclosures and a Fitch Ratings report, this would be Vietnam's largest-ever wave of bank capital raisings. The driver is straightforward: Vietnam reported growth of nearly 10% last quarter, and one of Asia's fastest-growing banking industries needs more capital because credit expansion is outrunning domestic funding.
Vietnam's banking sector has long been closed to outsiders: cumulative foreign ownership is capped at 30%, individual stakes at 20%, and offshore borrowing is tightly restricted. That has shifted in recent months. Top leader To Lam's drive to turbocharge growth with major infrastructure spending has brought a more open approach, as policymakers see larger foreign participation as necessary to meet credit demand amid a domestic funding squeeze. The offshore borrowing ceiling was raised 11% this year to $6.1 billion and could rise further; three local lenders have been allowed to lift their foreign ownership limits to 49%. Last month, FTSE Russell upgraded Vietnam to emerging-market status, and plans for international financial centers promise more foreign capital inflows.
Foreign lenders are moving fast. Reuters reported last month that Japan's SMBC is in talks to increase its stake in Vietnam's VPBank from 15% to around 20%, a placement worth an estimated $700 million to $900 million. Japan's Mizuho Financial Group and MUFG Bank, along with South Korea's KEB Hana Bank, already hold strategic minority stakes in major Vietnamese lenders. Two people familiar with equity discussions said foreign banks involved see both investment returns and access to Vietnam's growing consumer market for products like insurance as reasons to expand.
The capital feast comes with risks. Vietnam's central bank set a 2026 credit growth target of 15%, down from 19% in 2025, but asset quality is under pressure: among 28 listed banks, non-performing loans in categories 3–5 had risen 17.5% by the end of Q2 from the start of the year, while special-mention loans jumped nearly 29%. Fitch and market analysts warn that lending-driven growth can accumulate asset-quality pressure. The capital-raising wave is both fuel for growth and a stress test: foreign money flowing in is a vote of confidence in Vietnam's economy — but whether it pays off will depend on the quality of the loans booked in the next few years.
Sources: Reuters, Fitch Ratings, TradingView, Finimize, East Asia Forum, Vietstock, VIR