Stable outlook for VN’s banking system on robust economic growth

Stable outlook for Vietnam’s banking system on robust economic growth: Moody’s

Credit ratings agency Moody’s Investors Service on August 19 said its stable outlook for Vietnam’s banking system reflects the country’s robust economic performance, which will support asset quality and profitability.
Stable outlook for Vietnam’s banking system on robust economic growth: Moody’s
Stable outlook for Vietnam’s banking system on robust economic growth: Moody’s ảnh 1Transactions at Techcombank (Photo: VNA)

Hanoi (VNA) - Credit ratings agency Moody’s Investors Service onAugust 19 said its stable outlook for Vietnam’s banking system reflects thecountry’s robust economic performance, which will support asset quality andprofitability.

According to Rebaca Tan, a Moody’s Assistant VicePresident and Analyst, Vietnam’s GDP growth is forecast to moderate to 6.7percent in 2019 and 6.5 percent in 2020 from 7.1 percent in 2018, but even atthese projected rates the country will still remain the fastest-growing economyin the Southeast Asia.

Vietnam’s commercial banks have been cleaning up their balance sheets,supporting asset quality, and problem loan ratio of the bank system is expectedto decline to 4.8 percent at the end of 2020 from 5.1 percent at the end of2018, Tan said.

Capital ratios should remain broadly stable over the next 12-18 months, backedby growth in retained earnings, although a number of banks will need to raisecapital to meet stricter Basel II capital requirements while sustaining assetgrowth.

Profitability will improve as the banks increase their lending to the higheryielding retail and small and medium enterprise (SME) segments, while creditcosts will remain stable when banks continue to make provisions against legacyproblem assets.

The Vietnamese Government will continue to provide support when needed, mainlyin the form of liquidity assistance and regulatory forbearance, as it has donein the past.-VNA
VNA

See more

At the February 14 meeting between Lao Prime Minister Sonexay Siphandone and a delegation of Vietnamese businesses and international enterprises from various countries. (Photo: VNA)

Vietnam strengthens business and investment ties in Laos

Highlighting Laos's vast potential for trade and investment cooperation, Lao Prime Minister Sonexay Siphandone said that Laos is an attractive investment destination, particularly in agriculture, tourism, logistics, and infrastructure development.

Lao government officials and representatives of Vietnamese businesses at the seminar (Photo: VNA)

Vietnamese firms eye investment in Laos

He reaffirmed Laos as a key investment destination for Vietnamese and global firms, highlighting opportunities in agriculture, tourism, logistics, and infrastructure.

Vice Chairman of the Bac Giang People's Committee Mai Son (Photo: bacgiang.gov.vn)

Bac Giang speeds up non-state budget investment projects

In the coming period, the northern province of Bac Giang will focus on addressing challenges to non-state budget investment projects and expediting their progress, affirmed Vice Chairman of the provincial People's Committee Mai Son.

Representatives from industry associations share insights on Vietnam’s market trends. (Photo: VNA)

Vietnam, Thailand boost industrial trade exchange

Trade between Vietnam and Thailand reached 20.18 billion USD in 2024, up 6.4% year-on-year. Thailand remained Vietnam’s top ASEAN trade partner, accounting for 24% of its total trade with the bloc.

Representatives from Lao and Vietnamese agencies at the signing ceremony. (Photo: VNA)

Vietnam, Laos strengthen energy cooperation

A 1,200 MW wind power plant in Nong district, Laos’ Savannakhet province is expected to export 1,526 kWh to Vietnam annually once its first phase completes by the end of 2027, and additionally 1,112 million kWh per year after its second phase becomes operational in 2030./

A view of the Hanoi skyline. While rental properties continue to be in demand, there has also been a notable rise in the number of foreigners looking to buy houses. (Photo: VNA)

Housing demand from foreigners in Hanoi rises

Over several years, Hanoi has increasingly become an attractive destination for foreign workers, with approximately 10,000 new foreign workers are granted licences to work in the city each year.