Major Four Banks Hold 41.9% of Overall Credit and 50% of Total Deposits

The four largest commercial banks in Vietnam, namely Vietcombank, BIDV (Bank for Investment and Development of Vietnam), AGRIBANK, and VietinBank (referred to as the Big 4), collectively represented 41.9% of the country’s total outstanding loans and approximately 50% of the overall deposits within the banking system in 2023.

As per the latest data from the State Bank of Vietnam (SBV) as of December 31, 2023, credit witnessed a growth of around 13.71% compared to the end of 2022, showing a slight decrease from the 14.18% increase observed in the previous year.

The credit landscape in 2023 experienced a gradual rise in the initial quarters, with a temporary decline noted in July compared to the previous month. By September 30, credit growth had reached only about 7%.

Nonetheless, credit conditions started to improve slightly from the end of the third quarter, experiencing a remarkable surge in the final quarter, thanks to the SBV’s robust efforts in managing credit growth.

Playing a pivotal role in driving the credit growth of the entire economy in 2023 were the initiatives undertaken by the Big 4 banks, state-owned entities consistently leading in total assets, deposits, loans, and profits within the country’s banking system.

Consequently, the Big 4 banks injected a total of over VND684.8 trillion into the economy in 2023, constituting 41.9% of the outstanding loans across the entire economic landscape.

BIDV made the most significant contribution, providing nearly VND255.8 trillion, reflecting a credit growth rate of 16.66%. VietinBank followed suit with a credit growth of 15.6%, equivalent to nearly VND200 trillion. Vietcombank and Agribank recorded comparatively lower credit growth rates of 10.6% and 7.4%, respectively, corresponding to nearly VND122.6 trillion and VND106.8 trillion.

In 2023, the raised capital of the Big 4 banks increased by 13%, reaching nearly VND778.9 trillion compared to the previous year, amounting to a total of VND6.7 quadrillion.