Vietnam Bank Assets Surge as Real Estate Lending Shifts

Vietnam’s 30 largest commercial banks reached a combined total asset value of approximately 23.5 million trillion VND by the end of 2025, marking a 20% increase over the previous year [3]. This expansion coincides with a broader industry-wide credit growth of 19.01% for the year, as lenders increasingly prioritize real estate as collateral to secure their growing loan portfolios [1, 2].

Asset expansion and the real estate pivot

The scale of the banking sector’s growth is underscored by the emergence of eight "million-trillion-dong" banks, a group now including newcomers VPBank, Techcombank, and ACB [3]. BIDV remains the industry leader, with assets exceeding 3.26 million trillion VND, a 20% increase from 2024 [3]. MB has also seen significant momentum, with assets rising 43% to 1.5 million trillion VND, effectively cementing its position behind the traditional Big4 state-owned banks [3].

While assets have climbed, the composition of loan books reveals a shifting risk appetite. Among 15 banks that disclosed detailed real estate lending data, most increased their exposure compared to 2024 [1]. PVcomBank leads the sector with 47.50% of its total outstanding loans tied to real estate, a sharp rise from 31% the previous year [1]. Conversely, some major lenders have tempered their exposure; Techcombank’s real estate lending ratio fell to 28.60% from nearly 31% in 2024, and VPBank’s ratio dropped to 23.57% from 26.92% [1].

Why real estate remains the preferred collateral

Banks continue to favor real estate as collateral due to its perceived stability, clear legal framework, and high liquidity compared to other assets like machinery or inventory [2]. A representative from a Big4 bank noted that managing non-real estate collateral—such as factory equipment or textile machinery—often requires costly oversight to prevent asset dissipation or deterioration [2].

In contrast, real estate is viewed as a reliable hedge against credit risk. Even during periods of market stress, banks prioritize property because it maintains a consistent legal status and is easier to value against market benchmarks [2]. This preference is reflected in the massive volume of real estate-backed collateral held by the four state-owned banks, which reached nearly 11 million trillion VND in 2025 [2].

What to watch

• Asset Quality Trends: Monitor whether the high concentration of real estate collateral leads to increased pressure on banks if property liquidity slows or if the legal status of specific projects faces scrutiny.
• Regulatory Guidance: Watch for future directives from the State Bank of Vietnam regarding credit concentration limits, particularly for banks like PVcomBank and SHB that maintain high real estate lending ratios.
• Big4 Disclosure: Observe if the state-owned banks (Vietcombank, VietinBank, BIDV, and Agribank) eventually provide more granular data on their real estate exposure in future reports, as they currently do not disclose these figures in detail.

The rapid accumulation of assets across the sector highlights a period of aggressive balance sheet growth, yet the reliance on real estate as a primary security remains a defining feature of the industry's risk management strategy. Whether this concentration provides the intended safety net depends heavily on the continued stability of property valuations and the legal enforceability of these assets in a potential downturn.