Banks increased their charter capital by more than 110 quadrillion VND in 2021 - the highest annual growth to date - to enhance financial strength and meet the central bank’s regulations.
Hanoi (VNS/VNA) - Banks increased their charter capital by morethan 110 quadrillion VND in 2021 - the highest annual growth to date - toenhance financial strength and meet the central bank’s regulations.
More than 20 banks, such as Vietcombank, VietinBank, BIDV, SHB, VPBank, TPBankand OCB increased their charter capital last year. Only Techcombank andSacombank didn’t follow suit.
The bank with the strongest capital increase last year was VPBank. It raisedcharter capital from 25.3 trillion VND to more than 44.4 trillion VND throughpaying dividends in shares and issuing bonus shares for existing shareholdersat a total rate of 80 percent. The surge helped VPBank surpass Techcombank torank fourth instead of seventh position in terms of charter capital in thecountry’s banking system.
Three other banks, which also issued more than one billion shares each toincrease their charter capital by more than 10 trillion VND in 2021, were BIDV,VietinBank and Vietcombank. Last year was the first time the three State-ownedbanks had been allowed to pay dividends in shares to increase capital, after along time proposing the plan to the Government and the State Bank of Vietnam (SBV).
By the end of last year, BIDV was the bank with the largest charter capital inthe country’s banking system. After issuing more than 1 billion shares to paydividends at the rate of nearly 25.8 percent, BIDV’s charter capital increasedto 50.5 trillion VND, up more than 10.3 billion VND in early 2021.
It was followed by VietinBank with more than 48 trillion VND after the bankcompleted the issuance of nearly 1.1 billion shares to pay dividends at therate of more than 29 percent.
Industry insiders said banks had to increase charter capital strongly last yearas they have to prepare to meet the central bank’s regulation. Banks must havetheir capital adequacy ratio (CAR) to meet Basel II standards as prescribed inthe SBV’s Circular 41/2016/TT-NHNN by January 1, 2023. Up to now, 16 out of 35banks have met the requirement.
Besides meeting the central bank’s regulation, the capital increase will alsocontribute to improving banks’ financial strength and helping them increasemedium and long-term capital sources to expand business activities. Therefore,the race to increase charter capital among banks is forecast to continue stronglyin 2022./.
The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.
Many banks have increased their interest rates to attract more depositors after getting a credit growth quota expansion from the State Bank of Vietnam (SBV).
Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of VND, to recover debts amid the recovery of the realty market.
China’s Laoling city, in coordination with VINEXAD, hosted a series of events in Ho Chi Minh City from August 7-9 to seek trade and economic cooperation with Vietnam.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
A BIDV office in Hanoi (Photo: VNA) 
