HANOI, Sept. 5 (Xinhua) -- The outlook for the Vietnamese banking industry this year will be gloomier compared to previous years due to low credit growth and reducing profit, local newspaper Vietnam News reported on Tuesday, citing experts.
It is forecast that credit growth of the entire banking industry in 2023 will be at 12 percent-14 percent, the newspaper cited a recent report as saying.
The report by a local securities company forecast that pre-tax profits of the entire banking industry will slow in 2023 with a growth rate of about 10 percent-12 percent.
There will be a significant difference in profit prospects among groups of banks as small-sized banks may experience a sharp decline in profit growth in 2023, the newspaper reported.
Most of these banks set a profit growth target of only 10 percent-15 percent in 2023, much lower than the figure of 32 percent-35 percent in the 2021-22 period, it said.
In the first half of 2023, credit growth of the industry was lower than the same period last year due to high lending interest rates.
It is expected that in the second half of the year, the move from the State Bank of Vietnam will help lower lending rates and improve credit growth of the industry, according to the newspaper. ■
