Bank prepares scenario to respond to US tariff impact

Producing and processing canned fish for export at Kien Giang Trading Joint Stock Company. Photo: Le Huy Hai/VNA

Demand for loans will fall as exports stagnate

Talking to reporters of Tin Tuc and Dan Toc Newspaper, General Director of MB Bank Pham Nhu Anh said: "The group of customers exporting to the US (including those with foreign investment capital (FDI) and domestic capital) at MB is not large, accounting for about 0.6% of total outstanding loans. MB has worked with this group of customers, advising customers to diversify export markets, and providing financial support to overcome difficulties."

According to Mr. Luu Trung Thai, Chairman of MB, the bank has foreseen difficult scenarios in its 2025 plan. “Credit growth is expected to be 24-25%, revenue to increase by 20-25% and profit to increase by 10%, even in the context of increasing bad debt pressure due to export enterprises being affected by tariffs,” Mr. Luu Trung Thai shared. MB’s bad debt ratio is currently at 1.63%, lower than the industry average of 2.8%. The bank is proactively recording risks early and increasing provisioning costs with a plan to raise the bad debt coverage ratio to over 100% this year.

Mr. Phan Duc Tu, Chairman of BIDV Board of Directors, said that the total outstanding loans of customer groups likely to be affected by this policy are currently around VND300,000 billion, equivalent to 15% of BIDV's total outstanding loans. Industries at risk of being greatly affected include steel, mechanics, plastics, seafood, textiles, transportation, computers and industrial real estate.

“Tariffs from the US can have a comprehensive impact on many aspects of operations such as credit, capital mobilization or banking services. The demand for loans will decrease when export enterprises are stagnant, forced to cut production to find new markets, leading to a decline in credit demand. Not only that, capital mobilization activities, especially from FDI enterprises, will also be affected, because most of the deposits of this group are in foreign currency...", Mr. Phan Duc Tu emphasized.

Some banks are also concerned that when businesses' cash flow is disrupted due to the impact on the export market, bank debt repayment will slow down, causing credit quality to decline, leading to banks having to increase provisions and reduce profits.

On SHB's side, Chairman of the Board of Directors Do Quang Hien said that the bank has reviewed its entire credit portfolio, focusing especially on export customers, who are considered to be significantly affected by changes in tariff policies. However, the impact is not considered to be too large.

“Regarding cooperation with the US, we have worked directly with the US Ambassador and large US corporations and businesses. The two sides have had specific discussions on many areas from agricultural products, energy to aircraft and air conditioning engines. We have discussed necessary adjustments to continue effective cooperation. From those results, I believe SHB will continue to accompany the Government in achieving the growth target of 8% this year," said SHB Chairman Do Quang Hien.

According to Vietcombank , the bank is calmly coordinating closely with customers to find solutions together to limit the impact if the tax is imposed on a high scale as originally planned. "There are two basic solutions, one is the policy of diversifying market shifts and the other is the policy of financial support in times of difficulty, affected by orders that cannot be exported, orders that are reduced, affecting production and business activities," said a representative of Vietcombank.

Sharing about the development prospects in the coming time, Mr. Jens Lottner, General Director of Techcombank, commented that although the US tariff policy has affected the global economy, this is also an opportunity for Vietnam to accelerate technology investment, diversify export markets and promote domestic consumption. In that context, the bank's investment in data, digitalization and talent, along with the strength of the business model that has been proven through market cycles, will help Techcombank be ready to accelerate.

Operating a comprehensive digital ecosystem model

Eximbank's pre-tax profit target for 2025 is set to exceed VND5,188 billion, up 23.8% over last year.

At the recent General Meeting of Shareholders (AGM) of Eximbank, Mr. Nguyen Hoang Hai, Acting General Director of Eximbank, said that in the coming time, Eximbank will invest in digital transformation, strongly change the comprehensive digital mindset from online customer onboarding, deploying financial services on digital platforms, serving customers in digital space. This will help to significantly reduce operating costs, streamline personnel, increase system speed and productivity. However, it also requires large investments in technology and clear planning to avoid falling behind the speed of new technology development.

Eximbank will focus on its strengths in the import-export sector, focusing on optimizing benefits, trade finance transactions, increasing revenue from service fees, improving service quality instead of competing only on interest rates. Eximbank has customers who have been loyal to the bank for the past 15-20 years, the rate of long-term customers is among the highest in the market, which is the foundation for developing the trade finance sector in the long term. Last year, Eximbank was granted large funding limits by many foreign partners, from 200-400 million USD, to serve trade finance.

Techcombank's management emphasized the bank's pioneering role in building and operating a comprehensive digital ecosystem model this year. Unlike the multi-industry ownership or investment model, Techcombank's ecosystem is built on the basis of the ecosystem's common target customer segment, through a modern technology platform, with strong investment in AI, GenAI and data. To date, Techcombank and its partners in the ecosystem have been able to reach more than 25 million customers, creating a significant competitive advantage thanks to superior data capabilities.

According to VNA

Source: https://baoapbac.vn/kinh-te/202505/ngan-hang-du-phong-kich-ban-ung-pho-tac-dong-thue-quan-hoa-ky-1041517/