Credit quality in Vietnam’s banking sector in 2025: Current conditions and key challenges

The year 2025 represents a pivotal phase in the recovery and restructuring of Vietnam’s banking sector following a period of significant economic volatility. While credit activities continue to play a central role in supplying capital to the economy, they also intensify challenges related to risk management and systemic stability. Drawing on data from banking sector reports and publicly available sources, this study assesses the current state of credit quality using key indicators, including credit growth, non-performing loan ratios, and risk provisioning levels. The findings indicate that, although the overall credit quality of the banking system in 2025 is expected to remain relatively stable, latent risks persist and warrant close monitoring and effective control.