BIDV Chairman Phan Duc Tu to Retire July 1; Bank Plans Capital Hike to Nearly VND 100 Trillion

Overview

BIDV (BID) held its Annual General Meeting on April 24, 2026, where Chairman Phan Duc Tu announced his retirement effective July 1, 2026. The bank also presented a comprehensive capital increase plan to raise charter capital from VND 70.2 trillion to nearly VND 100 trillion through stock dividends, reserve capitalization, and a new share issuance. Additionally, shareholders will vote on electing two new board members, including a representative from major shareholder Keb Hana Bank.

Key Facts

• Chairman Phan Duc Tu will retire from BIDV effective July 1, 2026, as per State Bank of Vietnam notice dated January 10, 2026.
• BIDV proposes to increase charter capital from VND 70,213 billion to VND 99,558 billion, an increase of up to VND 26,757 billion.
• The capital plan includes: (1) issuance of up to 498 million shares (6.85% ratio) from reserve funds; (2) issuance of up to 1.39 billion shares (19.19% ratio) as stock dividends from 2023 retained earnings; (3) issuance of up to 780 million shares (10.71% ratio) via public or private placement in 2026-2027.
• BIDV will elect two new board members: Mr. Kim Sang Soo (representing Keb Hana Bank, which holds 14.21% of BIDV) and Mr. Hoang Viet Hung (current Deputy General Director).
• For 2026, BIDV targets total asset growth of 5-10% and credit growth within SBV-approved limits.
• In 2025, BIDV’s total assets exceeded VND 3.26 million billion (+20.5% YoY), with pre-tax profit of VND 35,509 billion (+15.7% YoY) and NPL ratio at 1.26%.

What Happened

At the April 24 AGM, BIDV’s Board of Directors presented a resolution to increase charter capital to nearly VND 100 trillion, a 41.8% increase from the current VND 70.2 trillion. The plan comprises three components: issuing shares from reserve funds, distributing stock dividends from 2023 retained earnings, and a new share sale to investors via public offering or private placement. The latter is expected to be executed in 2026-2027.

Separately, the bank announced that Chairman Phan Duc Tu will retire on July 1, 2026, as previously notified by the State Bank of Vietnam. To fill the vacancy and replace outgoing Keb Hana Bank representative Yoo Je Bong, the board proposed electing Kim Sang Soo (Keb Hana Bank) and Hoang Viet Hung (BIDV Deputy General Director) as new board members.

Market Context

BID shares closed at VND 40,000 on April 15, 2026, down 0.12% with volume of 6 million shares. The stock trades on HOSE. BIDV is Vietnam’s largest bank by total assets, and the capital increase plan, if approved, would further strengthen its capital base, supporting lending growth. The leadership transition comes amid a stable operating environment, with the bank reporting strong 2025 results and a controlled NPL ratio.

Strategic Significance

The capital increase is strategically important for BIDV to meet Basel III standards and fund future credit expansion. The inclusion of a new representative from Keb Hana Bank underscores the continued strategic partnership with the Korean lender. The retirement of Chairman Phan Duc Tu, a long-serving leader, marks a governance transition that may bring fresh perspectives but also requires careful succession planning. The bank’s ability to execute the capital plan and maintain asset quality will be key for long-term investors.

What to Watch

• Shareholder vote on the capital increase plan and board election at the AGM.
• Timeline and pricing of the public/private share placement in 2026-2027.
• Appointment of a new chairman following Phan Duc Tu’s retirement.
• BIDV’s Q2 2026 earnings and credit growth relative to SBV targets.
• Any regulatory approvals required for the capital increase from the State Bank of Vietnam.