Vietnam financial sector faces rising capital demand and credit risks

Vietnam's financial sector is facing significant shifts in capital mobilization and rising credit risks. SHB (Saigon - Hanoi Commercial Joint Stock Bank) has approved a plan to issue Singapore Dollar (SGD) denominated bonds on the international market. This issuance is expected to be guaranteed by the Credit Guarantee Fund of Asia (CGIF), a trust fund of the Asian Development Bank (ADB), with potential listing on the Singapore Exchange.

According to FiinGroup, planned equity issuances and IPOs for listed companies have reached approximately 289,500 billion VND, an 86.5% increase compared to 2025. The banking sector alone accounts for 44.2% of this total, with major planned issuances from BIDV, Vietcombank, VPBank, HDBank, and NVB.

Simultaneously, VIS Rating reports increasing credit concentration risks within the securities industry. While bank-linked securities firms have seen growth, they are becoming increasingly dependent on large margin lending clients and specific corporate bond issuers. Risk appetite in the sector rose to 21% in Q2 2026. Concerns are noted regarding investments in real estate bonds from companies such as TCX, VPX, HDS, and TPS, where high interest rates and liquidity issues may delay asset recovery.