The Vietnam Joint Stock Commercial Bank for Industry and Trade (), trading as Vietinbank, is a state-owned

Vietnam Vietnam, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...

ese bank. As of 2023, it is Vietnam's second-largest bank, with VND 1,800 trillion (around $76 billion) of

assets under management In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institutio ...

. According to the VNR500 (Top 500) ranking, Vietinbank is Vietnam's 13th largest company. It has a market capitalisation of VND 53.22 trillion (around $2.5 billion) as of late 2012, making it one of Vietnam's largest listed companies. Major customers with loans of several hundreds of millions of dollars include

PetroVietnam Petrovietnam (PVN), formally the Vietnam National Industry - Energy Group () and formerly the Vietnam Oil and Gas Group ( or ), is the state-owned national oil, gas and energy industry corporation of Vietnam. Petrovietnam has developed ra ...

and

Vietnam Electricity Vietnam Electricity (EVN; ) is the national and the sole public power company in Vietnam. It was established by the government of Vietnam as a state-owned company in 1994, and has operated officially as a one-member limited liability company s ...

(EVN). Vietinbank also has strategic partnerships with the

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution headquartered in Washington, D.C. and a member of the World Bank Group that offers investment, advisory, and asset-management services to encourage private ...

and

Mitsubishi UFJ Financial Group is a Japanese bank holding and financial services company headquartered in Chiyoda, Tokyo, Japan. MUFG was created in 2005 by merger between and UFJ Holdings (株式会社UFJホールディングス; ''kabushikigaisha yūefujei hōrudingusu'' ...

History

The Vietnam Industrial and Commercial Bank (Incombank) was set up by the

State Bank of Vietnam The State Bank of Vietnam (SBV; ) is the central bank of Vietnam. Organized as a Ministry (government department), ministry-level body under the Government of Vietnam, it is the sole issuer of the national currency, the Vietnamese đồng. As o ...

in 1991 as one of the first four commercial banks after the introduction of a

two-tier banking system A single-tier banking system is a policy framework under which all credit institutions coexist without distinction about the quality of their liabilities, or in other words, there is no distinction between central bank money and broad money. This ...

. Other sources suggest that the bank was set up in 1988. By 2000 the bank had total assets of 48.7 trillion VND, deposits of 40.7 trillion and debts of 26.2 trillion. Loans were granted mostly to large government programmes in priority sectors such as postal services, communication, processing, and construction material, but there was also lending for non-commercial purposes such as flood relief and training funds for poor students. As other major commercial state banks, Vietinbank was pressured by the government to continue lending to unprofitable state companies. It was subject to a 1 trillion VND

recapitalisation Recapitalization is a type of corporate reorganization involving substantial change in a company's capital structure. Recapitalization may be motivated by a number of reasons. Usually, the large part of equity is replaced with debt or vice versa. ...

by the government in December 2002, effectively doubling the bank's charter capital (from 1.045 trillion in 2001). It was the only of the four major state banks not part of the second stage of recapitalisation in 2003.Kovsted, Rand & Tarp (2005): 47 Incombank changed its name to Vietinbank in April 2008. It was listed on the

Ho Chi Minh City Stock Exchange Ho Chi Minh Stock Exchange (HOSE, HoSE, or HSX), formerly the HCMC Securities Trading Center (HoSTC), is a stock exchange in Ho Chi Minh City, Vietnam. It was established in 1998 under Decision No. 127/1998/QD-TTg of the Prime Minister of Vietn ...

in July 2009. Vietinbank had two major increases in its chartered capital in 2011 by issuing more shares to existing shareholders, thereby increasing chartered capital to 20.23 trillion VND by the end of the year (around $1 billion). At this point, state shareholders held 80.3% of the bank's shares.

Ownership

Vietinbank is majority owned by the

. It holds 64% of the bank's shares after selling 20% to

according to Bloomberg and 67.4% according to estimates published by Gafin.vn. Mitsubishi UFC is projected to hold 20%/ 16.1% and the

10%/ 8.4%.

Strategic partnerships

The

became Vietinbank's first strategic partner in October 2010, when it signed a cooperation agreement with the bank and acquired 10% of its shares. Vietinbank announced its second strategic partnership with

in December 2012. Mitsubishi UFJ is going to buy 20% of Vietinbank's shares for 15.5 trillion dong ($743 million). Mitsubishi UFJ wants to gain a foothold in Vietnam's growing markets for retail lending and international banking transactions, while Vietinbank hopes to improve corporate governance and risk management.

Alleged frauds

Huynh Thi Huyen Nhu, a former Acting Head of the Dien Bien Phu Transaction Office of VietinBank, was indicted of stealing 4 trillion VND (equivalent of 230 million dollars) from 3 major banks, 9 companies and 3 individuals. This was considered the biggest bank fraud in 2014. During the trial, some lawyers believed that VietinBank, where Nhu worked for and used its credentials to the scheme, must take responsibility for the swindling case and compensate the victims in the case. However, VietinBank has denied its responsibility in the case, stating that the institutions and individuals were cheated when dealing with Nhu personally, not VietinBank. Meanwhile, the bank’s computing system was only the instrument for Nhu to implement her cheating. The amount expected to be lost from this case was roughly 3200 billion VND (equivalent of 150 million dollars).

Subsidiaries

Independent accounting subsidiaries

* ''VietinBank Securities Co Ltd'' (76% owned by VietinBank) is listed in Hanoi Securities Trading Center (CTS) and has a market capitalisation of 551.7 billion VND. * ''VietinBank Leasing'' (100% owned by VietinBank) * ''VietinBank Insurance'' (100% owned by VietinBank) * ''VietinBank Aviva Life Insurance'' (50% owned by VietinBank) * ''VietinBank Asset Management Company'' (100% owned by VietinBank) * ''VietinBank Fund Management Company'' (100% owned by VietinBank) * ''VietinBank Gold and Jewellery Company ''(100% owned by VietinBank) * ''VietinBank Global Money Transfer Company'' (100% owned by VietinBank)

Non-profit making units

* ''VietinBank Information Technology Center'' (100% owned by VietinBank) * ''VietinBank Card Center'' (100% owned by VietinBank) * ''VietinBank Training Center'' (100% owned by VietinBank)

Being the founder of the following Financial Credit Institutions

* ''Saigon Bank for Commerce and Industry'' * ''Indovina Bank'' (the first joint-venture bank in Vietnam) (50% owned by VietinBank) * ''Vietnam International Leasing Company – VILC'' (the first financial leasing company in Vietnam)

Awards

* Vietnam National Brand Award * Sao Khue Award 2023 * Best SME Bank in Vietnam * Best Retail Bank in Vietnam * Excellence in Innovation - Contact Center Vietnam 2023 * Grand Prix - Vạn Xuân Awards 2023

References

{{reflist ;Bibliography *Kovsted, Jens, Rand, John & Tarp, Finn (2005): From Monobank to Commercial Banking - Financial Sector Reforms in Vietnam. NIAS Press & ISEAS, Singapore Companies listed on the Ho Chi Minh City Stock Exchange Banks established in 1988 Vietnamese brands Mitsubishi UFJ Financial Group Government-owned banks of Vietnam 1988 establishments in Vietnam