In 2023, the global economy experienced a downturn attributable to stringent monetary policies implemented on a global scale. The protracted geopolitical tensions between Russia and Ukraine showed no signs of abating, exacerbated by Russia’s decision not to extend the Black Sea grain transit agreement beyond July 17, 2023, significantly impacting global grain supplies. The sudden escalation of the Israel-Hamas conflict posed potential risks of escalation and drew the involvement of multiple stakeholders, threatening vital maritime arteries such as the Suez Canal, the Red Sea, and the Gulf of Aden. These developments posed substantial challenges to global supply chains which were already weakened by the lingering effects of the Covid-19 pandemic.
As a small-scale economy with high openness and limited risk resilience, Vietnam inevitably faces adverse external influences alongside domestic economic vulnerabilities. GDP growth has fallen behind set targets, while both imports and exports have declined. The real estate and bond markets have shown sluggish recovery, contributing to reduced capital absorption by businesses and an overall economic downturn, non-performing loans in the banking system have exhibited an upward trend.
In the face of these prevailing challenges, Vietcombank continues to assert its steadfast leadership in the banking sector with a focus on operational excellence and efficiency. As of December 31, 2023, the bank’s total assets exceeded 1.84 quadrillion VND, while its outstanding credit reached approximately 1.28 quadrillion VND, reflecting a 10.8% increase compared to the previous year-end. Achieving a new milestone, pre-tax profit amounted to approximately 41.244 trillion VND, marking a 10% increase over 2022. Vietcombank has effectively managed non-performing loans at 0.99%, the lowest among major credit institutions, with a provision coverage ratio for on-balance-sheet non-performing loans reaching approximately 227%, placing it at the forefront of the market.
