HCMC – The Government has proposed recapitalizing Vietcombank with VND20.7 trillion from share dividends due for the State’s share holdings, the local media reported.
The additional capital would be sourced from dividends distributed to the State as a shareholder, pooled from Vietcombank’s retained earnings up to the end of 2018 and profits from 2021.
The funds will be allocated for infrastructure upgrades (VND9.5 trillion), digital transformation (VND17.2 trillion), and business expansion (VND985 billion).
Nguyen Thi Hong, governor of the State Bank of Vietnam, said at a meeting with the National Assembly Standing Committee on September 24 that this capital increase is essential for the state-run Vietcombank to meet the minimum capital adequacy requirements, and strengthen its financial capacity to support the restructuring of struggling banks.
Vu Hong Thanh, head of the National Assembly’s Economic Committee, said that the investment would bolster Vietcombank’s financial stability, ensure its capital safety ratio, and help the bank comply with Basel III, the international regulatory framework for banks, by 2026.
