Total outstanding loans expected to expand 4.4% in Q1

HCMC – Total outstanding loans in the economy are expected to rise by 4.4% in the first quarter of this year, signaling a departure from earlier forecasts, according to the State Bank of Vietnam’s Department of Forecasting and Statistics. It is anticipated that deposits will rise by 2.6% in the first quarter, followed by a robust surge of 12.1% throughout 2024. Despite hopes for a fall in bad debt, the survey pointed out that the ratio of non-performing loans to total gross loans among banks picked up in the fourth quarter of 2023. However, optimism remains as a mild reduction is projected for quarter one of 2024. The performance of Vietnam’s banking sector in the final quarter of last year improved mildly compared to the preceding quarter.