Brian Jeffrey
On September 24, the National Assembly Standing Committee held discussions regarding the proposition for state investment in Vietcombank, a Joint Stock Commercial Bank for Foreign Trade in Vietnam.
Nguyen Thi Hong, the Governor of the State Bank of Vietnam (SBV), informed the committee that the Government is seeking approval for an increased state capital investment of over VND 20,695 billion into Vietcombank, which is intended to be incorporated in the general resolution of the upcoming 8th session.
The funds required for this investment will derive from the dividends of state shares, retained earnings up to the end of 2018, and residual profits from 2021 produced by Vietcombank.
Governor Hong highlighted the urgent need for this state investment in Vietcombank to align with resolutions 43/2022 and resolution 11 approved by the National Assembly and the Government, respectively.
This investment initiative supports the banking sector’s development strategy through 2025, with a vision extending to 2030, focusing on restructuring the credit institution system and managing bad debts for the 2021-2025 period while meeting necessary capital adequacy ratios.
The influx of state capital is expected to strengthen Vietcombank’s financial position, aiming to position it among the top 100 banks in Asia and reaffirm its leading role in the financial sector, as directed by national authorities.
Such reinforcement will empower Vietcombank to effectively implement government policies and bolster the economy, including support for agricultural and rural development, interest assistance, and state budget commitments.
“This investment is critical for Vietcombank to have the resources required to aid in the restructuring of underperforming credit institutions, ensuring safety within the system and fostering stable growth in both the banking sector and the broader economy,” the Governor of the State Bank remarked.
Governor Hong also noted that the new charter capital is intended for investments in infrastructure, office development, IT advancements, digital transformation, and business growth.
Vu Hong Thanh, Chairman of the National Assembly’s Economic Committee, indicated full committee support for the Government’s proposal to incorporate this matter into the general resolutions of the 8th session of the 15th National Assembly.
The auditing agency has requested that the Government further review and present detailed information on the topics for the general resolution for reporting back to the National Assembly.
Responsibility was placed on the Government to ensure that the data provided regarding the additional state capital investment in Vietcombank is accurate.
At the conclusion of the meeting, Vice Chairman of the National Assembly, Nguyen Khac Dinh, confirmed the committee’s agreement on the necessity, amount, and intentions behind the proposed investment as described by the Government.
He urged the Government to incorporate the feedback from the session and the auditing agency to finalize the submission to the National Assembly, ensuring that all documents reach Assembly deputies before October 1.
