Analysts have forecasted that Vietnam's banking industry will continue to face difficulties in 2023. In a report, Viet Dragon Securities Company (VDSC)’s analysts have said the interest income growth of the banking industry in 2023 will slow due to the impact of low credit growth and a decreasing net interest margin (NIM). The analysts said that the banking industry's asset quality may reduce in 2023 in the downtrend of the real estate sector and the less favourable import and export prospects. However, the analysts have noted the reduction will differ among banks based on the impacts of corporate bonds and real estate lending. A high provision buffer for risky loans will help some banks which had prudent policies with the two business segments to avoid the decline in asset quality.