Vietnam's bank earnings growth to rise to 17 percent in 2025
Date
1/16/2025 8:30:16 AM
(MENAFN) Vietnam's bank earnings growth is expected to rise from 14 percent in 2024 to 17 percent in 2025. This increase is largely attributed to a shift in the country’s economic drivers, with growth moving away from external factors to those more focused on domestic sources. The change in the economic landscape is expected to provide a more stable foundation for banks, enhancing their financial performance.
VinaCapital, an investment management firm, projects that bank stocks in Vietnam will perform strongly in the coming year. The firm sees this growth as a result of a more favorable internal economic environment, which should provide the banking sector with ample opportunities to thrive despite external challenges.
While Vietnam's export growth to the United States is expected to decline, the impact will likely be mitigated by several domestic factors. Infrastructure spending is set to increase, real estate development is expected to see a boost, and consumer spending should grow as well. These developments are expected to support the broader economy, which in turn will benefit the banking sector.
Experts from VinaCapital believe that these combined factors—higher infrastructure spending, a revival in real estate activity, and improved consumer confidence—will stimulate credit growth. This will not only support the banks' net interest margins but also contribute to the continued recovery of their asset quality, ensuring a positive outlook for the sector.
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