HANOI (Reuters) - Vietnam is planning to inject 20.695 trillion ($815 million) of capital into state-owned commercial lender Vietcombank, the country's biggest bank, to boost its capacity to support government policy, the deputy prime minister said on Wednesday.
The move was in line with the banking industry development plan for 2025 and the 2021-to-2025 restructuring and bad debt resolution plan, deputy prime minister and finance minister Ho Duc Phoc told parliament.
"It is crucial for Vietcombank to have enough resources to support the government's policies, the restructuring of weak institutions, and to contribute to the stability of the banking sector and the economy," Phoc said.
"The additional capital will also help Vietcombank improve its financial capacity to expand its international reach and become one of the biggest banks in Asia," he added.
The State Bank of Vietnam (SBV), the country's central bank, has a 74.8% stake in Vietcombank, according to LSEG data.
Last week, the SBV said Vietcombank would take over smaller lender Construction Bank as part of its restructuring program to tackle non-performing loans.
Phoc said the government would fund the capital injection using the share dividends it received from Vietcombank in 2018 and the lender's retained profits from 2021.
Vietnam's parliament is expected to approve the plan at a vote on November 30.Shares of Vietcombank, which has a market value of $20.2 billion, closed up 0.11% to 91,500 dong on Wednesday.