Vietcombank, officially known as the Joint Stock Commercial Bank for Foreign Trade of Vietnam, held its 2026 annual general meeting on 24/4. Despite the majority stake held by a large shareholder, leading to fewer individual investors than at private banks, the one-hour discussion was lively, addressing credit growth and capital allocation to risky sectors like real estate.

An investor raised concerns about the significant capital demand for infrastructure and real estate, particularly given Hanoi's urban development plan until 2050, asking about the bank's financing strategy. Chairman Nguyen Thanh Tung responded that Vietcombank's real estate loan proportion is considerably lower than other banks. The bank controls capital flow into this sector in line with market developments.

Tung emphasized the cyclical and risky nature of the real estate market. "We strictly control outstanding balances for high-end, speculative products," he stated. He added that Vietcombank categorizes loan segments, carefully selects developers, and prioritizes projects that meet genuine housing needs and offer reasonable prices.

Chu tich VCB Nguyen Thanh Tung phat bieu tai phien hop Dai hoi co dong, ngay 24/4. Anh: VCB

In late February, interest rates for home loans (apartments and townhouses with pink books) at a Vietcombank branch in TP HCM started from 9,6% per year. This rate represents a significant increase compared to the fixed 6% for 12 months in the same period of 2025. While Vietcombank's 2025 audited financial report did not detail total outstanding real estate loans, the bank holds 1,9 quadrillion VND in real estate collateral, accounting for approximately 70-72% of its mortgage portfolio.

Beyond residential properties, industrial and export processing zone real estate is a key focus for Vietcombank. Tung noted that financing industrial park enterprises boosts production, exports, and attracts foreign direct investment (FDI). By the end of Quarter I, outstanding loans for this segment reached approximately 33 trillion VND. For social housing, Vietcombank accepts lower profits, providing loans at interest rates below the cost of capital, in line with government support programs for sustainable development.

Cac lanh dao Vietcombank tai phien hop thuong nien, ngay 24/4. Anh: VCB.

For the current year, Vietcombank projects a profit increase of around 5% and aims to keep its non-performing loan (NPL) ratio below 1,5%. The bank has set a credit growth target of approximately 10%, with a maximum of 13% as allocated by the State Bank of Vietnam (SBV). This limit also applies to VCBNeo, the digital foreign trade bank Vietcombank compulsorily acquired in October 2024.

A shareholder questioned why VCBNeo's credit growth target is significantly lower than other acquired banks (over 30%) and why its limit is below similar institutions. General Director Le Quang Vinh clarified that Vietcombank aims for sustainable growth. The bank focuses on high-quality customer segments to safeguard shareholder interests. "Our view is not to pursue rapid growth to avoid bad debts," Vinh stated.

Trong Hieu