Vietnam bad debt ratio forecast to keep rising in Q3

The customer risk level in Vietnam continued to increase in the second quarter of 2024 and the bad debt ratio is forecast to go up slightly in the third quarter, said credit institutions.

The results of a State Bank of Vietnam (SBV) survey on business trends at credit institutions in Q3/2024 showed that the overall business situation and pre-tax profits of the banking system in Q2 improved, but not as clearly as expected.

About 70-75.5% of credit institutions expected the business situation to be better in the Q3 and the whole of 2024.

In 2024, 86.2% of credit institutions said they hoped their pre-tax profits would surpass 2023, but 11% were still worried about negative profit growth and 2.8% estimated profits would remain unchanged.

In 2024, the customer risk level is projected to remain unchanged from 2023.

According to the General Statistics Office, as of June 24, the Vietnamese banking system’s credit had grown about 4.5%.

Credit institutions said that the banking system's liquidity remained "good" in Q2, and is forecast to continue to improve in Q3 and the rest of the year.