The proportion of foreign currency loans has steadily declined in recent years, alongside foreign currency deposits. Can this trend be reversed in the near future? Where might the influencing factors come from? Trends in foreign currency loans and deposits Over the past five years, foreign currency loans have accounted for about 7% of total outstanding loans in HCMC, and there has always been a downward trend, as stated by a representative of the HCMC branch of the State Bank of Vietnam (SBV). Specifically, foreign currency loans represented 7.25% of total outstanding loans in 2019; this proportion fell to 6.76% in 2020, slightly improved to 7.06% in 2021, then dropped to 5.21% in 2022, continued to decline to 4.28% in 2023, and as of August 2024, it stood at only 3.6%. This trend in HCMC aligns with the national trend. According to data, the proportion of foreign currency loans in the total loan portfolio of commercial banks was 10.1% in 2015, dropped to 5.9% in 2019; decreased further to 5.4% in 2020; slightly increased to 5.6% in 2021; fell back to 4.3% in 2022; and continued to decrease to 4% in 2023. It is estimated that this proportion in the first […]