Vietnam Banks Seize Capital Markets Lead Through Securities Affiliates

Beyond their traditional lending operations, a number of Vietnamese banks are significantly expanding their footprint in the capital markets, channelling a focus on bond issuance advisory and investment banking (IB) through their affiliated securities companies.

Recent industry reports and Q1 financial statements from securities firms linked to commercial banks reveal a significant market shift. While competition historically centered on brokerage market share, account numbers, or margin lending balances, a new battleground is emerging in bond issuance advisory, capital arrangement, and broader IB activities.

A report by S&I Rating notes that TCBS, VPBankS, and HDBS—the securities affiliates of Techcombank, VPBank, and HDBank, respectively—currently command approximately 80% of the total IB revenue across the entire securities industry. The breakdown shows TCBS with a 43% share, followed by VPBankS at 20% and HDBS at 16%.

Although IB activities represent only about 4.2% of the securities industry's total revenue, this income is heavily concentrated within the group of bank-affiliated firms. This dynamic indicates a clear competitive pivot from brokerage volume to the sophisticated capabilities of arranging capital and delivering integrated financial solutions for corporate clients.

This trend is most pronounced at TCBS. In the first quarter of 2026, the firm's IB revenue reached VND 526 billion (US$19.9 million), a 27% increase year-on-year. During the same period, it advised on corporate bond issuances valued at approximately VND 28 trillion. Excluding bank-issued bonds, TCBS holds a dominant 86% market share in corporate bond issuance advisory.

Other banks are pursuing similar capital arrangement strategies. VPBankS, which accounts for roughly 20% of the industry's IB revenue, is recognized as a leading investment banking firm. In recent years, it has progressively expanded its activities in issuance advisory, mergers and acquisitions (M&A), and capital arrangement, moving beyond a singular focus on brokerage. HDBank is also reinforcing its capital market presence through HDBS. According to analysts, revenue from IB activities now constitutes approximately 36% of the company's total revenue. The firm's Q1 2026 financial report confirms a strategic emphasis on investment and capital market activities over traditional brokerage.

Financial investment experts note that prior to the implementation of the Law on Credit Institutions 2024, commercial banks' involvement was primarily aimed at capitalizing on opportunities in IPOs, privatization, and M&A. Their role has since broadened to encompass advisory for bond issuance, arranging syndicated loans, facilitating foreign capital-raising transactions, asset management, and providing comprehensive financial packages for corporate clients.

According to S&I Rating's analysis, the primary advantage for these securities firms stems from their ability to leverage the extensive customer ecosystems and resources of their parent banks. Factors such as brand recognition, lower cost of capital, access to rich customer data, and cross-selling capabilities provide a substantial competitive edge. These elements help them dominate the IB sector, even when they do not lead in brokerage market share.

This strategic shift is occurring in tandem with the expansion of the financial ecosystems of several major banks. In addition to lending, banks are increasingly investing in digital banking, digital payments, asset management, insurance, and securities to diversify and grow service-based revenue. The development of open banking and data connectivity via Open APIs is laying the groundwork for future digital financial ecosystems. In this environment, customer data is becoming a critical asset for commercial banks to expand their financial advisory and capital arrangement services. Through their core activities in lending, payment processing, and cash flow management, banks gain deep insights into the capital-raising and expansion needs of their corporate clients, which in turn fuels the growth of their issuance advisory and capital arrangement services.

A 2026 securities industry outlook report from VPBankS Research suggests that the IB sector is entering a recovery phase. This is supported by improvements in the corporate bond market and rising demand for medium- and long-term capital from businesses. This trend aligns with the recent move by many banks to inject more capital into their securities subsidiaries and expand their capital market operations.

Dr. Nguyễn Trí Hiếu, a financial and banking expert, said that as the economy grows, the demand for medium- and long-term capital can no longer be met by bank credit alone and will require greater participation from the capital market. According to Dr. Hiếu, the rise of bank-affiliated securities companies shows that many banks are evolving from simple credit providers into providers of comprehensive financial solutions for their corporate clientele.

Recent developments confirm that investment banking is becoming an essential pillar in the growth strategies of many Vietnamese banks. Coupled with digitalisation and the expansion of financial ecosystems, the competition to arrange and secure capital is poised to become significantly more intense in the years ahead.