TPBank is in the top 10 prestigious Vietnamese commercial banks in 2023

Vietnam Report announced the list of Top 10 prestigious Vietnamese commercial banks in 2023, including Vietcombank, VietinBank, Techcombank, BIDV, MB, VPBank, ACB, Agribank, TPBank and VIB.

According to Vietnam Report Joint Stock Company (Vietnam Report), this unit has just announced the list of Top 10 prestigious Vietnamese commercial banks in 2023.

The top 10 prestigious Vietnamese commercial banks in 2023 include Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Military Commercial Joint Stock Bank (MB), Commercial Bank for Agriculture and Rural Development of Vietnam (VPB), Joint Stock Commercial Bank for Agriculture and Rural Development of Vietnam. Vietnam (Agribank), Tien Phong Commercial Joint Stock Bank (TPBank) and Vietnam International Commercial Joint Stock Bank (VIB).
Along with that, Vietnam Report also announced the Top 10 prestigious private joint stock commercial banks in 2023, including Vietnam Technological and Commercial Joint Stock Bank, Vietnam Prosperity Commercial Joint Stock Bank, Asia Commercial Joint Stock Bank, Tien Phong Commercial Joint Stock Bank, Vietnam International Commercial Joint Stock Bank, Saigon Development Commercial Joint Stock Bank, Saigon Commercial Joint Stock Bank, Hanoi Tin Commercial Joint Stock Bank, and Saigon Commercial Joint Stock Bank. Vietnam Customs and Southeast Asia Commercial Joint Stock Bank.

Top 10 prestigious Vietnamese commercial banks are built on scientific and objective principles. Banks are evaluated and ranked based on 3 main criteria: financial capacity shown in the latest year's financial statements; media reputation and survey results of related subjects conducted in June 2023.
Vu Dang Vinh, General Director of Vietnam Report, said that in the first period of 2023, the global economy weakened, leading to a decrease in orders, and business activities of enterprises continued to shrink. The Purchasing Managers' Index (PMI) of Vietnam's manufacturing industry continued to decline for the third consecutive month to 45.3 in May and the sixth month below the 50 threshold in the past 7 months.
Enterprises face many difficulties, production is moderate, business expansion is limited, so the ability to absorb capital is low, leading to slow credit growth. The phase divergence occurred in the context that the group of customers prioritized for loans by banks, which are manufacturing enterprises and individuals, had a slow demand for loans due to high interest rates, reduced orders, and unfavorable asset investment markets while the group of customers who were thirsty for capital and accepted loans with high interest rates, mainly real estate businesses, were not eligible for disbursement.

By the end of May, the credit growth of the economy was about 3.17% compared to the end of 2022, significantly lower than the credit growth in the same period in 2022 of approximately 8%. At the end of the first quarter of 2023, the bad debt ratio on the whole industry's balance sheet increased to 2.9%, while banks assessed that the pre-tax profit of the banking system in the first quarter of the year had a growth but did not meet expectations.
However, according to Mr. Vinh, the survey results in 2023 show that there is no expectation of breakthrough growth in the last 6 months of this year compared to the same period last year. Instead, the majority of banks believe that in the second half of 2023, the whole industry will be in a stable state, maintaining a growth rate of 44.2% compared to 42% as in the survey results in 2022. The proportion of banks forecasting industry growth is slightly lower than last year, while the proportion of banks that believe in a positive/slightly better growth scenario is still 14.3% compared to the same period in 2021.

Assessing the biggest difficulties and challenges for the growth of the banking industry in 2023, Mr. Vinh analyzed, at the 2023 Annual General Meeting of Shareholders, many banks set business plans for 2023 cautiously.
Notably, all banks adjusted their profit plans this year. This shows that 2023 is seen by banks as a challenging year as they have to continue to share resources and share difficulties with businesses amid the slowing global economic growth, while issues such as interest rates, bad debts, risk provisioning, frozen real estate and bond markets that have not been fully reflected in last year's business results will have a significant impact on banking operations this year.

Based on the survey results of Vietnam Report, the Top 7 biggest challenges of the banking industry in 2023 are shown: increasing bad debt, inflation risk, low global economic growth, downturn in stock, real estate and bond markets. In addition, the emergence of fiercely competitive Fintech companies, challenging the market dominance of banks, and the pressure to increase charter capital in order to improve capital adequacy ratios and banks' ratings are also listed as challenges that banks need to face in the coming time.