That dynamic is being closely monitored because Vietnamese banks are already operating with thin capital buffers to absorb potential losses. Standby letters of credit (SBLCs) — a promise to repay debt if the client borrower can’t — have been a popular way to make guarantees. Hidden risks from SBLCs may weaken loss-absorption buffers, especially as banks’ capital raising remains limited, said Phan Duy Hung, director-senior analyst at VIS Rating. A representative of Vietnam Banks Association declined to comment when asked about the risks of guarantees such as SBLCs. Vingroup considers “a range of funding sources, including SBLCs,” it said in reply to a query on the financing.

Source: The Edge Markets January 28, 2026 00:09 UTC