VietinBank to sell VietinBank Tower project. Photo: VietinBank
To be sold to leading domestic property developer
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), a state-owned lender, said at a recent investor meeting following the release of its second-quarter results that it would sell VietinBank Tower in Hanoi's Ciputra urban area to a leading domestic property developer.
VietinBank said all legal procedures related to the project transfer had been completed and that it and the buyer would sign the transfer agreement in August.
The bank did not disclose the expected profit from the sale.
Rong Viet Securities estimated in a 2025 report that VietinBank could surprisingly book a profit of about VND5 trillion (US$190 million) if it sold the project for a price roughly equal to its expected original investment of VND10.267 trillion ($390 million).
VietinBank's financial statements show about VND5.5 trillion ($209 million) in unfinished construction costs for projects in northern Vietnam.
The figure has changed little in recent years, as the VietinBank Tower project remained stalled.
From failed joint venture to stalled project
VietinBank initially planned to develop the project with Singapore's Premium Asset Pte.
The two sides signed a joint venture agreement in January 2008, with Premium Asset holding a 72-percent stake and VietinBank 28 percent.
The global financial crisis caused financial difficulties for Premium Asset Pte, prompting the Singaporean partner to withdraw and ending the joint venture.
VietinBank later decided to finance the project itself after failing to find a suitable replacement partner.
Construction began in 2010 on a site of nearly 30,000 square meters.
The land was leased for 38 years at about $1,800 per square meter, with the total rental cost estimated at about VND849 billion ($32 million).
The project was designed with two towers linked by a seven-story podium.
The taller tower was planned to have 68 floors and reach 363 meters. VietinBank planned to use the tower as its headquarters.
The second tower was designed with 48 floors and a height of 250 meters.
It was planned to include a five-star hotel, healthcare facilities, and luxury apartments for rent.
The project was approved with total investment of about VND10.267 trillion.
It was originally scheduled for completion in 2014.
The project missed its completion deadline.
VietinBank agreed in 2018 to restructure the project and seek an outside investor.
Under the plan, the bank would transfer the project and lease part of the 68-story tower for use as its headquarters.
By the first quarter of 2021, the bank had begun seeking foreign investors for the deal.
A total of 29 investors expressed interest, with 21 signing confidentiality agreements to gain access to the project's documents.
The process, however, stopped short of a final deal.
The Ministry of Construction included the project in an inspection plan in 2024 and asked VietinBank to clarify the reasons for the prolonged delay.
VietinBank attributed the delays mainly to the project's capital-raising plan, which had yet to receive approval from the designated authorities.
In July 2025, the bank restarted efforts to transfer the project.
VietinBank said at the time that it was completing the necessary procedures for the transfer and invited qualified investors to express interest in acquiring the project.
No deal was reached at the time.
Early this year, a leading domestic property developer began exploring the acquisition of the tower, while securities firms said the transaction could be completed in the first half of 2026.
In April, VietinBank CEO Nguyen Tran Manh Trung said the two sides were nearing the final legal steps.
He said the transfer price would be based on market value and would not be lower than the appraised value or the total amount invested.
As of July 31, VietinBank's total assets had increased more than seven percent from the start of the year.
Its period-end credit balance rose 5.6 percent .
Average current account savings account (CASA) balances stood at about VND440 trillion ($16.7 billion), up more than 10 percent year on year, although period-end CASA balances remained slightly below the end-2025 level.
Bad debt and income indicators were broadly unchanged from their levels at the end of June, the bank said.
VietinBank said it and other state-owned banks would keep growth at a moderate pace and focus on improving efficiency.
VietinBank also said it would seek to keep borrowing costs at reasonable levels for customers.
The bank is awaiting further government guidance following a meeting between the government and the banking sector.
It may adjust its business plan after receiving the guidance, VietinBank said.
The bank acknowledged that some scale-related targets were below the plan set at the end of 2025.
It said operating efficiency had improved and that it remained confident of meeting the targets approved by shareholders.
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