A survey conducted by the State Bank of Vietnam has found that 77.7 percent of commercial banks in the country are expecting good business results this year, with strong increases in both loans and deposits.
Findings of the quarterly survey were posted on the central bank's website on Thursday. The number of respondents was not revealed but the central bank said the survey covered both local and foreign lenders in Vietnam.
The banks have forecast a profit growth of 9.73 percent for the whole sector, up from their previous projection, 8.89 percent, in the second quarter.
Big commercial banks are more optimistic, expecting an average increase of 16 percent in revenues from lending.
Nearly 60 percent of the respondents think external factors related to business environment are quite stable, while about 34 percent say they have been improved.
According to the survey, loans in the banking system are set to grow 17.6 percent this year, and deposits, 15.56 percent.
The central bank has set its credit growth target at between 13 and 17 percent.
Nearly half of the respondents say by the end of the year, both loan and deposit interest rates will have fallen by 1 percentage point from the end of last year.
About 30 percent expect the rates to slightly increase.
Most of the lenders in the survey believe their bad debt will fall below 3 percent of total loans, meeting the central bank's target.
They also say their liquidity conditions are stable and and "relatively strong," for both the Vietnam dong and foreign currencies.