Vietnamese Bank Stocks Lose $8.96B in July, Erasing 2026 Gains
This Aveluro analysis covers BID (BIDV) on HOSE in the Banks sector. The classified event type is sector sentiment, with negative sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Vietnamese bank stocks suffered their worst month of 2026 in July, with the combined market capitalization of 27 listed banks falling by over 220,000 billion VND (~$8.96 billion) to 2.605 million billion VND. The decline, which erased all gains since the start of the year, was led by BIDV (BID) and Techcombank (TCB), each losing more than 32,000 billion VND. Only ABBank managed to post a gain.
Key Facts
- Combined market cap of 27 listed banks fell from 2.829 million billion VND on June 30 to 2.605 million billion VND on July 31, a drop of 7.84%.
- 26 of 27 banks declined in July; only ABBank rose, adding over 2,100 billion VND (+8.2%).
- BIDV (BID) and Techcombank (TCB) each lost more than 32,000 billion VND in market cap.
- Vietcombank (VCB) and VietinBank (CTG) each fell by 24,000 billion VND; MBBank (MBB) dropped 21,000 billion VND.
- VIB’s market cap fell 6,800 billion VND, causing it to drop two places in the ranking, below SeABank and MSB.
- SHB, TPBank, NCB, and Eximbank saw double-digit percentage declines in market cap.
- The VN-Index fell 6.68% in July, closing down over 124 points from end-June.
What Happened
July was a brutal month for Vietnamese bank stocks, as the VN-Index retreated sharply from the 1,800-point level. The banking sector, a heavyweight on the index, bore the brunt of the selloff. According to exchange data, the total market capitalization of 27 listed banks dropped from 2.829 million billion VND on June 30 to 2.605 million billion VND on July 31, a 7.84% decline. This was the lowest month-end level since the start of 2026, falling below the end-2025 figure.
Among the decliners, BIDV and Techcombank suffered the largest absolute losses, each shedding over 32,000 billion VND. Vietcombank and VietinBank each lost 24,000 billion VND, while MBBank dropped 21,000 billion VND. The top-10 ranking by market cap remained unchanged, but mid-tier banks saw reshuffling: VIB’s market cap fell 6,800 billion VND, causing it to drop two places below SeABank and MSB. Several smaller banks, including SHB, TPBank, NCB, and Eximbank, recorded double-digit percentage declines.
Market Context
BID, listed on HOSE, closed at 38,000 VND on August 2, 2026, reflecting the recent downtrend. The banking sector’s July slump mirrors broader market weakness, with the VN-Index down 6.68% for the month. The selloff comes despite generally positive fundamental outlooks from brokerages. KBSV, in a July report, maintained a constructive view on the banking sector for 2026, expecting credit growth to meet the State Bank of Vietnam’s 15% target, supported by public investment and export recovery. However, KBSV also flagged NIM compression and rising bad-debt pressure from Q2 2026.
Strategic Significance
The July selloff highlights the banking sector’s sensitivity to macro headwinds, including high interest rates and regulatory tightening on real estate credit. For long-term investors, the decline may present valuation opportunities, especially for banks with strong fundamentals like BID, VCB, and TCB. However, the sector faces structural challenges: NIM compression due to rising funding costs, and potential asset-quality deterioration as high rates from early 2026 feed through. The State Bank of Vietnam’s recent decision to adjust the deduction ratio for State Treasury deposits (effective August 1, 2026) could provide some liquidity relief, but its impact remains to be seen.
What to Watch
- Q2 2026 earnings reports from major banks (BID, VCB, TCB, CTG) for signs of NIM trends and asset quality.
- Credit growth data for July and August to gauge whether the 15% full-year target remains achievable.
- State Bank of Vietnam policy moves, including any adjustments to interest rates or reserve requirements.
- Progress on resolving legal issues for real estate projects, which could ease bad-debt formation.
- Foreign investor flows into banking stocks, as the sector’s valuation becomes more attractive after the selloff.