The ratio of bank nonperforming loans (NPLs) to total gross loans in Vietnam has shown a marked improvement from 2013 to 2023, decreasing from 3.11 to 1.52. This represents a notable decline in NPL levels. The year-on-year variation from 2022 to 2023 is -2.56%, indicating a steady improvement.
Forecasts from 2024 onward suggest a continued decline, with the ratio expected to reach 1.34 by 2028. The forecasted 5-year Compound Annual Growth Rate (CAGR) is -2.09%, with a total forecasted 5-year reduction of 10.03%.
Future trends to watch for include:
- Potential regulatory changes affecting banking practices
- Economic shifts that could impact loan performance
- Technological advancements in financial services
- Global economic conditions influencing local banking stability
