FiinResearch - Infographic: Vietnam Banking Report 2022

August 05 2022



FiinResearch is pleased to present our Vietnam Banking Report 2022. In this report, we updated the performance of Vietnam banking sector with an emphasis on the credit growth, liquidity, asset quality, earnings quality and operational efficiency of the sector and individual banks in the post-pandemic context. In-depth analysis of key development trends and regulatory frameworks in the sector are also covered in the report.

The Vietnamese banking sector has gone through an eventful 2021 with watershed moments characterized by the evolution of COVID-19. The first half was dominated by a devastating fourth COVID wave that challenged growth and eroded banks’ asset quality. However, the second half witnessed the sector come round along with the resumption of production and recovery in consumer spending. The pandemic somehow motivated banks to become more proactive, adaptive and innovative. Although risks and uncertainty remain persistent, the worst is over, the sector is set to benefit from the economic recovery, government supportive policies and the fruit of digital transformation hence promises to thrive in the coming years.

Below are the most critical findings in our issue:

  • Credit growth strongly recovered thanks to the resumption in manufacturing and trade activities as well as surging consumption demand

  • Idle capital is flowing back to the banking system thanks to the hike in the deposit rates and the cooling down of other investment channels

  • The NPL ratios tend to decline thanks to the improved credit quality of borrowers and increasing credit demand under the new normal

  • Banks might face NIM leveling off in 2022 due to the jump in the deposit rates, while SBV still requires to keep the lending rates at moderate levels for the post-pandemic support

  • Fee and commission income emerged as a stable source of income for commercial banks with a significant contribution of income from the insurance business

  • Digital transformation continues to be the backbone of most local banks’ long-term strategies

View our full infographic HERE.

This infographic is a snapshot of our newest Vietnam Consumer Finance Report 2022, you can explore more detail on our full report HERE.

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