Vietnam Banking Sector

The fact that the Vietnamese dong depreciated by a modest 2.9% year on year in 2023 indicated high stability and improved foreign exchange reserves compared to the end of the previous year.

The main goal of the banking sector is to support economic growth while controlling inflation, contributing to the stability of the macro-economy, the monetary and foreign exchange markets, and financial security.

The Government plans to develop mechanisms that enable small and medium-sized enterprises to venture into new fields such as innovation, digital transformation, and the promotion of green, circular, and sharing economy models.

The favorable economic backdrop has enabled banks to take advantage of ample asset origination opportunities to expand while rising household incomes and improved business cash flow keep credit risks in check.

The interest subsidy scheme is estimated to total VND40 trillion (US$1.76 billion) for the 2022-2023 period.

The banking sector is set to continue promoting the use of non-cash payment methods with greater convenience and safety for the public.

The validity extension of the resolution is of particular significance due to rising bad debts during the pandemic.

The size of the non-banking corporate bond market is on the rise.