Vietnam’s banking sector faces heightened scrutiny over concentrated lending practices as Deputy Prime Minister Nguyen Van Thang signs Decision 1809 to modernize financial institutions, address credit weaknesses, and curb high-risk corporate debt exposure. According to the government directive, credit institutions must eliminate lending deals that concentrate capital within isolated corporate ecosystems and project backyards.
Targeting High-Risk Corporate Ecosystems and Internal Lending
Decision 1809 instructs financial institutions to dismantle financing models that funnel heavy debt into select large-scale corporations, client groups, or projects. According to state guidelines, these concentrated exposures threaten operational safety. Regulators are mandating stricter internal audits, thorough credit quality checks, and aggressive tracking of related-party transactions.
The directive targets sectors carrying elevated non-performing loan ratios, real estate concentrations, and aggressive expansion into securities trading. Financial institutions must review and reverse accumulated interest records that violate regulatory standards. State Bank of Vietnam inspectors are deploying early-warning systems to monitor lenders showing rapid credit expansion or heavy exposure to volatile market segments.
Securities Sector Expansion and Concentration Risks
While regulatory pressure mounts in banking, Vietnam’s securities sector navigates its own structural shifts. According to a mid-2026 sector update from VIS Rating, bank-affiliated securities firms are expanding their core operations faster than competitors following recent capital injections.
Four securities firms secured a combined total of roughly 40 billones de VND in fresh capital during the first half of the year. This influx lowered the sector-wide leverage ratio from 2.4 times in 2025 to 2.2 times. Improved liquidity metrics saw the sector’s liquidity ratio climb from 105 % at the end of 2025 to 107 % in the second quarter of 2026.
Despite stronger balance sheets, VIS Rating warns that asset growth remains narrow. The ratings agency notes that margin loans and corporate bond investments increasingly concentrate on a small pool of large borrowers and real estate issuers. Sector risk exposure climbed from 19 % in 2025 to 21 % by the second quarter of 2026.
Profitability Pressures Across Major Brokerages
Rising capital costs are compressing margins on margin lending, while declining stock valuations weigh on proprietary trading desks. According to VIS Rating data covering 27 brokerages—including SSI Securities Corporation, Techcombank Securities Corporation, and VNDirect Securities Corporation—average return on average assets (ROAA) dropped from 5,6 % in 2025 to 4,3 % in the first half of 2026.
Out of the 27 firms analyzed against their benefit plans, 14 face risk of missing their 2026 financial targets. While select institutions offset earnings declines through bond issuance advisory fees and stable returns on certificates of deposit, broader sector resilience remains vulnerable to financial distress among major corporate clients.
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