S&P upgrades Vietcombank to BB+, highest among local banks

S&P upgrades Vietcombank to BB+, highest among local banks

The upgrade reflects Vietcombank’s improved financial strength, prudent risk management, and solid capital buffers.

Vietcombank's building in HCM City. Photo courtesy of the bank

Standard & Poor’s Global Ratings (S&P) has raised Vietcombank’s long-term issuer credit rating from BB to BB+ with a Stable outlook, the highest rating among Vietnamese banks and on par with the national sovereign rating.

The upgrade reflects Vietcombank’s improved financial strength, prudent risk management, and solid capital buffers, S&P said. It also signals confidence in the bank’s ability to maintain stability over the next 12–24 months.

Vietcombank leads the domestic banking sector with total assets of more than US$85 billion and a market capitalisation exceeding $20 billion. Its asset quality remains among the strongest in the system, with a non-performing loan ratio of 0.97 per cent — the lowest in the sector — and a loan-loss coverage ratio above 200 per cent.

According to S&P, the bank is well-positioned to sustain high risk-adjusted capital ratios and low credit costs compared to industry averages. The agency noted that Vietcombank’s strong provision buffer of over VNĐ32 trillion enhances its resilience against macroeconomic volatility.

“This upgrade is a recognition of our financial strength, risk management, and sustainable growth strategy,” said Lê Hoàng Tùng, Deputy CEO of Vietcombank. “It also reflects international confidence in Việt Nam’s economic prospects. We remain committed to supporting the country’s sustainable development while creating long-term value for our stakeholders.”

The higher rating is expected to reduce Vietcombank’s international funding costs, strengthen investor confidence, and provide a competitive edge in expanding partnerships and attracting foreign capital.

The move comes as Việt Nam continues to post stronger-than-regional growth supported by FDI inflows, resilient domestic consumption and tourism recovery. While S&P warned that rapid credit growth and gaps in regulatory standards could pose challenges, it highlighted Việt Nam’s ongoing reforms as a positive step towards greater transparency and stability.

Vietcombank has consistently been recognised as Việt Nam’s leading commercial bank by international institutions such as The Banker and Forbes. The latest S&P upgrade further underscores its role as a pillar of the domestic financial system and a key driver of Việt Nam’s credit profile in global markets. 

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