On November 30, the National Assembly approved in principle the additional investment of state capital to maintain the state’s ownership ratio in the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) with a sum of over VND 20,695 billion from the state’s dividend in shares from the accumulated profit remaining until the end of 2018 and Vietcombank’s 2021 profit.
Previously, the government proposed to increase Vietcombank’s charter capital from the remaining profits after setting up funds and paying cash dividends until the end of 2018 and the remaining profit in 2021, with a sum of VND 27,666 billion (to ensure a rounding ratio of 49.5%).
The remaining profit of VND 36 billion will be supplemented in subsequent issuances. With this plan, the dividend for the state shareholder in shares is VND 20,695 billion (rounded). This is considered a supplementary investment of state capital in Vietcombank.
Vietcombank’s current charter capital is VND 55,891 billion. Thus, after the issuance of an additional VND 27,666 billion as approved by the National Assembly, Vietcombank’s charter capital will be VND 83,557 billion, the highest in the credit institution system today.
The National Assembly entrusted the Government and the Prime Minister to direct the investment and supplementation of state capital in Vietcombank in accordance with the law and take responsibility before the National Assembly for the accuracy of the data and the scale of state capital supplementation for the Joint Stock Commercial Bank for Foreign Trade of Vietnam.
From 2014 to 2023, Vietcombank contributed a total of over VND 71,000 billion to the state budget, including approximately VND 53,000 billion in taxes. In the last three years, from 2021 to 2023, the amount contributed to the state budget was about VND 29,000 billion, ranking first in the banking industry and maintaining its position as one of the largest budget-contributing enterprises in the economy. Notably, the capital source that Vietcombank proposed for the charter capital increase comes from the annual retained earnings after fully fulfilling its obligations to the state budget. Therefore, it does not affect the state budget collection plan and does not put pressure on the national budget balance. In addition, in the five years from 2020 to 2024, Vietcombank fulfilled its social security responsibilities with a total value of over VND 2,408 billion.”
(Compiled from Vietcombank and State Bank of Vietnam reports by VnEconomy)
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