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Vietnam bank profits diverge in Q1, favoring large lenders

Vietnam bank profits diverge in Q1, favoring large lenders

The Vietnamese banking sector’s profits in Q1/2026 showed a clear divergence, with growth seen among large lenders with strong capital and asset quality while smaller banks facing mounting pressure from rising funding costs and credit risks.

In the group of four state-controlled banks (Big 4), Vietcombank led with pre-tax profit of VND11,832 billion ($448.93 million), up 5.42% year-on-year.

VietinBank recorded VND11,139 billion, surging 63.3%, making it the fastest-growing among state-controlled banks, while BIDV reported VND8,571 billion, up 16.1%.

Among private banks, MBBank posted VND9,628 billion ($365.3 million) in pre-tax profit, up 14.8%; and Techcombank VND9,531 billion (+22.5%). VPBank and HDBank stood out with growth rates of 58% and 46%, respectively, signaling a recovery in core business drivers after a challenging period.

Not only are profits growing in absolute terms, but the pace of fulfilling annual targets among large banks is also high. VietinBank has completed 33.75% of the year's plan, HDBank 30.54%, while most others around 24-25%.

In contrast, the picture for small and mid-sized banks shows significant volatility. Some reported exceptional growth, such as ABBank (+260%), PGBank (+187%), and BVBank (+170%), but this largely stemmed from a low base or extraordinary income, rather than sustainable operational improvements.

Meanwhile, several banks posted weaker results. Sacombank reported VND2,106 billion ($79.9 million) in pre-tax profit, down 43% year-on-year, reflecting pressure from legacy asset settlement and increased provisioning. Banks like SeABank and Eximbank are facing similar challenges as provisioning costs surge.

Scale and asset quality set the rules of the game

Q1 developments point to a structural shift in the banking sector: credit growth is being allocated more selectively. Banks with larger scale, strong capital foundations, or involvement in system restructuring tend to receive higher credit growth quotas, allowing them to sustain expansion.

Conversely, smaller banks or those with weaker asset quality face tighter credit room, making their performance more dependent on short-term factors such as one-off income or cost-cutting.

Do Minh Phu, chairman of TPBank, likened credit limits to “a blanket that isn’t wide enough to stretch,” highlighting the challenge of balancing regulatory compliance with growth and efficiency amid cautious monetary policy.

According to SSI Securities, banking sector profits in 2026 may continue to grow at double-digit rates, but divergence between bank groups will become more pronounced. Banks with strong capital bases and better credit expansion capacity are expected to have the upper hand.

Meanwhile, Vietcombank Securities noted that net interest margins (NIM) may come under pressure in the second half of the year due to intensifying competition for deposits, forcing banks to rely more on credit growth to sustain profits.

One of the core factors driving divergence is asset quality. As of the end of Q1/2026, large banks continued to maintain good control of non-performing loans (NPLs). For example, Vietcombank posted a NPL ratio of 0.62%, ACB 0.97%, VietinBank 1.02%, and BIDV 1.3%.

In contrast, smaller banks reported higher NPL ratios, including MSB (2.66%), SeABank (2.24%), and Sacombank (around 2.2%). Rising bad debt led to higher provisioning costs, directly eroding profits.

In fact, some banks significantly increased provisioning in Q1. Eximbank recorded a more than 150% year-on-year rise in provisioning expenses. Many others also stepped up provisions to address emerging bad debts and strengthen financial buffers.


Source: Dinh Vu, Minh Hue

Photo: Photo by The Investor/Dinh Vu

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Industrial production continues expansion in 4M

Industrial production continues expansion in 4M

The Index of Industrial Production (IIP) in the first four months of 2026 increasing 9.2% year-on-year.

Vietnam’s industrial production continued to expand strongly in the first four months of the year, driven by robust growth in manufacturing and processing, according to data released by the National Statistics Office on May 3.

The Index of Industrial Production (IIP) rose an estimated 3% from the previous month and 9.9% year-on-year in April. Manufacturing and processing grew 10% compared to the same period last year, while electricity production and distribution increased 10.9%. Mining expanded 7.6%, and water supply and waste treatment services rose 7.1%.

In the first four months of 2026, the IIP climbed 9.2% year-on-year, higher than the 8.6% growth recorded in the same period of 2025. Manufacturing and processing remained the key driver, rising 9.9% and contributing 7.8 percentage points to overall growth. Electricity production and distribution increased 7.5%, while mining rebounded 4% after a decline a year earlier.

Industrial output rose across all 34 provinces and centrally governed cities, although growth varied depending on local performance in manufacturing, mining, and power generation.

Several key industrial products posted strong increases, including motorcycles (up 33.3%), processed seafood (22.5%), automobiles (22.4%), rolled steel (17%), construction steel (15.8%), beer (15.5%), and chemical paint (14.7%).


Top leader’s visit to shape new phase of Vietnam – India relationship

Top leader’s visit to shape new phase of Vietnam – India relationship

The visit takes place in a symbolic year for bilateral ties, as the two countries mark the 54th anniversary of diplomatic relations (1972 – 2026) and 10 years of their Comprehensive Strategic Partnership (2016–2026). It is expected to provide a breakthrough impetus and lay the groundwork for a new phase of cooperation.

Hanoi (VNA) –Party General Secretary and State President To Lam’s upcoming state visit to India is expected to inject fresh momentum and shape a new framework for elevating the Vietnam – India relations to a higher level in the next phase.

At the invitation of Indian Prime Minister Narendra Modi, the top Vietnamese leader will lead a high-level delegation to pay a state visit to India from May 5 to 7. The trip marks his second overseas visit since the National Assembly completed the consolidation of the country’s key leadership positions, and the first-ever visit to India by a Vietnamese leader holding both posts of Party General Secretary and State President.

The visit takes place in a symbolic year for bilateral ties, as the two countries mark the 54th anniversary of diplomatic relations (1972–2026) and 10 years of their Comprehensive Strategic Partnership (2016–2026). It is expected to provide a breakthrough impetus and lay the groundwork for a new phase of cooperation.

Trusted, close-knit political and diplomatic ties

Vietnam and India share a long-standing traditional friendship, nurtured by generations of leaders and underpinned by deep historical and ideological connections. Diplomatic ties were established on January 7, 1972, during a critical period of Vietnam’s struggle for national independence, opening a new chapter in bilateral cooperation.

The two countries have consistently supported and assisted each other, from their struggles for national independence in the past to their efforts in post-war reconstruction, as well as in renewal, and socio-economic development today.

The bilateral ties have steadily advanced through key milestones – the Joint Declaration on Comprehensive Cooperation Framework for the Twenty-first Century in May 2003, the Strategic Partnership in July 2007, and its elevation to a Comprehensive Strategic Partnership in September 2016.

Since then, cooperation has deepened across Party, State, parliamentary, and people-to-people channels. Dialogue mechanisms and sectoral cooperation frameworks have been effectively maintained. In December 2020, the two countries adopted the Vietnam – India Joint Vision Statement on Peace, Prosperity and People, followed by a Joint Statement on strengthening the Vietnam–India Comprehensive Strategic Partnership in August 2024.

High-level exchanges have remained frequent and substantive. Vietnamese leaders, including PM Pham Minh Chinh and other senior officials, have engaged with Indian counterparts at major international forums such as ASEAN and G20 summits. On India’s side, senior leaders including PM Narendra Modi and other high-ranking officials have also visited Vietnam, reinforcing mutual trust.

The two countries currently maintain a wide range of cooperation mechanisms, including the the Vietnam – India Joint Commission on Bilateral Cooperation at the foreign ministerial; the Vietnam – India Joint Sub-Commission on Trade; as well as political consultations and strategic dialogue, security dialogue, defence policy dialogue, foreign policy dialogue, and maritime security dialogue.

Vietnam and India continue to coordinate closely at multilateral forums, particularly within the United Nations and ASEAN-led mechanisms.

Economic, trade, and investment cooperation sees bright spots

Economic, trade, and investment ties have emerged as bright spots in the bilateral relationship. India is currently Vietnam’s eighth-largest trading partner, while Vietnam is India's 21st biggest partner in the world and fourth in ASEAN.

The two-way trade has grown rapidly, from 5.43 billion USD in 2016 to 16.46 billion USD in 2025. In the first quarter of 2026, the bilateral trade reached 4.8 billion USD, up 28% year-on-year.

As of March this year, India had 503 valid investment projects in Vietnam with total registered capital of over 1.1 billion USD, ranking 26th among foreign investors. Investments are concentrated in manufacturing, processing, electricity production and distribution sector, and mining sectors. India has invested in 20 provinces and cities across Vietnam, led by Ho Chi Minh City.

Meanwhile, Vietnam has invested in 30 projects in India with total capital of nearly 150.5 million USD. Notably, Vietnamese giant Vingroup is developing an electric vehicle manufacturing plant in Tamil Nadu, with plans to significantly expand investment.

Beyond economics, cooperation spans education, defence, tourism, and science and technology. India provides numerous scholarships to Vietnamese students and supports training initiatives, including IT and English language centres.

Defence and security cooperation remains an important and strategic pillar, while tourism and people-to-people exchanges are expanding. In 2025, Vietnam welcomed nearly 800,000 Indian tourists, four times higher than in 2019. Connectivity has improved significantly, with around 80 direct flights per week between the two countries. India has also supported the restoration of Cham tower groups at the UNESCO World Heritage site of My Son in central Da Nang city.

Science and technology cooperation has been stepped up, creating fresh momentum in areas aligned with both countries’ demands, particularly innovation, robotics, startups, atomic energy, and biotechnology. The two sides have signed many cooperation agreements and established the Joint Committee on Atomic Energy for peaceful purposes, while actively advancing collaboration in information technology, and rare earths.

Toward deeper and more effective comprehensive strategic partnership

Over the past decade, India has remained one of Vietnam’s leading comprehensive strategic partners in the region, with a high level of political trust, converging strategic interests, and a long-standing foundation of cultural and people-to-people ties. Vietnam, in turn, holds an important place in India’s “Act East Policy” and its Indo-Pacific vision, contributing to shared goals of peace, stability, and prosperity.

Against this backdrop, Party General Secretary and State President To Lam’s upcoming state visit to India is hoped to further consolidate political trust while opening new avenues for cooperation.

According to Deputy Foreign Minister Nguyen Manh Cuong, the visit underscores Vietnam’s strong emphasis on its Comprehensive Strategic Partnership with India, as well as its broader engagement with South Asia.

The visit also helps highlight the orientations and goals of Vietnam and India in sharing a common vision and strategic interests, ensuring that each remains a substantive priority in the other’s foreign policy. It will also provide an opportunity to exchange views on issues of mutual concern and to strengthen mutual support at regional and international forums.

Deputy FM Cuong said the visit is also a clear testament to the Party and State’s foreign policy in the new era, as outlined in the Resolution of the 14th National Party Congress. Through the visit, Vietnam reaffirms its role as a friend, a trusted partner, and an active, responsible member of the international community, proactively contributing to addressing regional and global issues.

Former Indian Ambassador to Vietnam Preeti Saran said the visit is expected to generate strong new momentum for Vietnam – India ties. She expressed confidence the trip will deliver a meaningful boost as anticipated by both sides.

Meanwhile, Professor Reena Marwah from Delhi University said the visit is hoped to inject fresh momentum, ushering bilateral ties into a more substantive and forward-looking phase.


Thuan An sea-crossing bridge in Hue opens to traffic

Thuan An sea-crossing bridge in Hue opens to traffic

The bridge spans roughly 2.36 km in Hue city, making it the longest sea-crossing bridge in central Vietnam.

After more than three years of construction, the Thuan An sea-crossing bridge—one of central Vietnam’s largest transport infrastructure projects and the longest of its kind in the region—has officially opened to traffic, creating a vital coastal corridor and new momentum for economic and tourism development in central Hue city.

The bridge is a key component of the coastal road project running through Hue. Construction began on March 24, 2022, with initial plans for completion by March 2025. However, delays in site clearance extended the timeline beyond schedule.

Phase 1 of the project has a total investment of around VND2.4 trillion (approximately $94 million), including more than VND2.08 trillion for construction. The route stretches about 7.8 km, starting at the intersection of National Highway 49B and Tam Giang Bridge, and ending at the junction of National Highways 49A and 49B.

The Thuan An bridge itself spans roughly 2.36 km, making it the longest sea-crossing bridge in central Vietnam, while the connecting road section extends about 5.3 km.

The bridge is expected to enhance the coastal transport network, ease congestion on existing routes, and unlock new opportunities for regional connectivity, marine tourism, and coastal services in Hue.



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