Vietnamese Securities Firms Face Capital Crunch as Margin Lending Surges

Overview

Vietnamese securities companies are facing acute capital shortages as margin lending demand continues to set records, with several firms including MBS, HCM, and PSI nearly exhausting their lending capacity. The trend of rising funding costs is squeezing profit margins, putting pressure on the sector and highlighting the advantage of firms with strong institutional or bank shareholders.

Key Facts

• Margin lending outstanding across the Vietnamese stock market hit a new record in Q1 2026, marking the 12th consecutive quarter of growth.
• Average lending capacity (maximum 2x equity) across over 40 securities firms improved to nearly 46%.
• Nearly half of all securities firms have lending capacity below the industry average.
• Several firms have less than 10% lending room remaining, including Mirae Asset Vietnam, MBS, CTS (VBSE), KBSV, HCM, PHS, and PSI.
• PHS and PSI have nearly exhausted their lending capacity entirely.
• HCM plans to raise charter capital from VND 10,808 billion to approximately VND 15,800 billion, backed by HFIC.
• SSI targets VND 30,000 billion in charter capital, while TCBS may temporarily regain the lead in Q2 2026.
• BSI aims to raise capital to VND 11,000 billion, pending shareholder approval.

What Happened

According to a recent analysis of over 40 securities companies, the average lending capacity (the ratio of maximum allowable margin loans to equity) improved to nearly 46% in Q1 2026. However, the picture is uneven: nearly half of all firms have capacity below the average, and several are critically constrained. Mirae Asset Vietnam, MBS, CTS, KBSV, HCM, PHS, and PSI all have less than 10% room remaining, with PHS and PSI effectively at their limits.

The capital shortage is driven by surging margin demand, which has set records for 12 consecutive quarters. While some firms have raised capital to expand capacity, the pace of funding cost increases is outpacing lending rate adjustments, compressing net interest margins. An industry expert noted that if this trend continues, expanding margin loans may no longer be as profitable.

Market Context

MBS closed at VND 21,000 on April 10, 2026, down 0.95% on low volume of 3.5 million shares. HCM closed at VND 27,000 on April 15, 2026, up 3.08% on high volume of 32.9 million shares. Both stocks trade on HOSE. The sector is under pressure as rising funding costs and regulatory constraints weigh on profitability. The capital race is intensifying, with firms backed by banks or financial institutions—such as BSI (backed by BIDV) and TCBS—better positioned to raise funds.

Strategic Significance

The capital crunch underscores a structural shift in the securities industry: firms with strong, deep-pocketed shareholders—particularly banks or state-owned financial institutions—have a clear advantage in raising capital to meet margin demand and maintain market share. Companies like SSI and TCBS are aggressively scaling up, while others like HCM are leveraging strategic partnerships (e.g., HFIC). For firms with limited backing, the risk of losing market share or facing margin compression is high. The ability to secure cost-effective funding will be a key differentiator in the coming quarters.

What to Watch

• Q2 2026 earnings reports from MBS, HCM, and PSI to assess margin income trends and funding cost evolution.
• Capital-raising announcements from MBS and CTS, including any rights issues or private placements.
• Regulatory changes to margin lending limits or capital adequacy requirements by the State Securities Commission.
• SBV policy rate decisions, which directly impact securities firms’ funding costs.
• Market-wide margin loan growth data for Q2 2026 to gauge demand sustainability.