During the National Assembly session on October 23, Deputy Prime Minister and Finance Minister Ho Duc Phoc, under the authorization of the Prime Minister, presented the proposal to invest additional state capital into the Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB).

He emphasized that the capital increase from the remaining profits of 2021 is crucial for improving the performance and competitiveness of state-owned enterprises, enabling them to play a leading role in key sectors.

The capital injection will also strengthen VCB’s financial capabilities, helping it strive to become one of the top 100 largest banks in Asia. This will allow VCB to have the resources to implement state policies and support the economy, such as credit policies for agricultural and rural development, interest rate subsidies, and credit provision for major national projects.

Regarding authority, Ho Duc Phoc stated that VCB has proposed an additional state investment of 20.695 trillion VND (848.57 million USD). This investment requires approval from the National Assembly, which will authorize the Prime Minister to issue a decision.

According to VCB’s report, the remaining profit after setting aside funds and paying cash dividends until the end of 2018, along with the remaining 2021 profits, amounted to 27.702 trillion VND (equivalent to 49.564% of charter capital).

VCB has proposed increasing its charter capital using these sources, totaling 27.666 trillion VND. The current charter capital of VCB is 55.891 trillion VND, and after the proposed increase, it will rise to 83.557 trillion VND.

Under this plan, the profits allocated to state shareholders in the form of shares will amount to 20.695 trillion VND.

"This is considered an additional state capital investment in VCB. These figures have been audited and confirmed as part of the 2023 financial audit of VCB. Therefore, the government has agreed on the additional state investment of 20.695 trillion VND," Deputy Prime Minister Phoc clarified.

Reviewing this proposal, Vu Hong Thanh, Chairman of the National Assembly's Economic Committee, stated that the committee agrees on the necessity of investing additional state capital into VCB.

As a commercial bank where the state holds over 50% of the charter capital, any additional capital investment in VCB must adhere to the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and related regulations.

Most members of the Economic Committee have requested further clarification on how the additional capital will be used, ensuring it aligns with the purpose of increasing state capital investment. The focus should be on expanding business activities, providing credit to priority sectors, and supporting large-scale national projects.

The Economic Committee has agreed with the government's proposal to include the additional state capital investment in VCB in the resolution of the 8th session of the 15th National Assembly.

Quang Phong