Margin Loans in Vietnam’s Stock Market Reach VND 457.5 Trillion
SGI Capital says margin loans in Vietnam’s stock market reached VND 457.5 trillion by the end of the third quarter of 2026, leaving borrowers with about VND 13 trillion in interest costs each quarter. It warns that high leverage and declining liquidity in the property market could add to selling pressure on stocks.
By the end of the third quarter of 2026, outstanding margin loans in Vietnam’s stock market had reached VND 457.5 trillion, equivalent to more than 5.3% of total market capitalization and 14.2% of the market value of freely traded shares. In its November market outlook, SGI Capital said both ratios were at record highs and that borrowers faced about VND 13 trillion in interest costs each quarter.
Outstanding margin loans in Vietnam’s stock market have risen, leaving borrowers with about VND 13 trillion in interest costs each quarter.（VietVance）
Compared with the peak in the first quarter of 2022, both the outstanding value of margin loans and its share of the market value of freely traded shares are now 2.5 times higher, while investors’ cash balances have fallen 15% to VND 71.5 trillion. SGI Capital estimates that, assuming securities firms lend an average of 40% of a stock’s market value, shareholders have pledged about one-third of the freely traded shares on the Ho Chi Minh City and Hanoi stock exchanges as collateral for margin loans.
The firm said that if some borrowed funds are used for other purposes and do not return in time, forced liquidations could put large volumes of shares on the market at once. Foreign investors sold a net VND 20 trillion worth of shares over the past month, bringing their net sales since the start of the year to more than VND 120 trillion. New share issuance to existing shareholders is expected to approach VND 18 trillion in the fourth quarter, up 35% from the third.
The property market could also put pressure on stocks. By the end of the third quarter, lending for property development was still growing by more than 25%, over twice the rate of overall credit growth, while demand for home mortgages was almost stagnant. SGI Capital said falling transaction volumes and rising interest rates could force some borrowers who bought homes to sell stocks to repay debt. The firm said stock valuations have gradually declined, but a sufficient margin of safety for new investments still depends on the market reducing debt leverage.
Source: VietVance
