Vietnamplus

Many of them have paid dividends in shares, issued bonus stocks, or even asked to retain their dividends.

The Vietnam Asset Management Company (VAMC) is planning to develop a new strategy for buying and selling bad debts in Vietnam this year, in which it will play a central role to promote the development of the debt trading market.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been named in the 17th annual Global 2000 – Forbes’ ranking of the World’s Largest Public Companies in 2019.

Debt trading among credit institutions and the Vietnam Asset Management Company (VAMC) has been conducted for years, but there have not been any debt trading activities among credit institutions.

Minister of Finance Dinh Tien Dung and Minister of Planning and Investment Nguyen Chi Dung pointed out difficulties and shortcomings facing the economy in their reports presented at the 14th National Assembly’s seventh session in Hanoi on May 31.

The financial capacity of Vietnam’s credit institutions has solidified in recent years, with their charter capital reaching 578.9 trillion VND (24.85 billion USD) by the end of the first quarter 2019.

The Vietnam Asset Management Company (VAMC) plans to handle some 50 trillion VND (2.14 billion USD) worth of bad debts in 2019, and issue special bonds to purchase 20 trillion VND (856 million USD) of non-performing loans.

Experts said that in order to deal with bad debts more effectively, local governments and management agencies need to remove obstacles quickly, proactively and actively.

The Vietnam Maritime Commercial Joint Stock Bank (MSB) is planning to list its shares on the Ho Chi Minh Stock Exchange (HoSE) in the third quarter of 2019.

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) plans to collect 5.07 trillion VND (217 million USD) in pre-tax profits this year, an increase of 27 percent compared to 2018.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has targeted a pre-tax profit of more than 11.7 trillion VND (504.3 million USD) in 2019, representing a 10 percent year-on-year increase.

The handling of bad debt among credit institutions would be audited this year in order to formulate recommendations for effectively implementing a National Assembly resolution, according to the State Audit Office of Vietnam (SAV).

The banking system and operations of credit institutions are crucial to the nation's economy, according to an official.

Standard and Poor’s (S&P) Global Ratings’ recent upgrade of its long-term sovereign credit rating for Vietnam, the first time since 2010, was expected to help the country to attract more foreign investments into the economy and expand exports.

Foreign financial institutions were eyeing up poorly-performing Vietnamese banks after being given the green light to acquire stakes in local institutions in a move to speed up the restructuring of the country’s banking industry, according to banking expert Nguyen Tri Hieu.

Credit institutions in Vietnam settled more than 204.4 trillion VND (8.77 billion USD) of non-performing loans (NPLs) by the end of the first quarter this year, said Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam (SBV).

The Government should help Vietnamese banks lure capital and experience from prestigious foreign banks so as to help local firms develop sustainably, experts said.

The State Bank of Vietnam (SBV) is drafting a new circular regulating credit institutions’ trading and handling of non-performing loans (NPL) with the aim of forcing the institutions to focus more on bad debt settlement.

Leaders of the State Bank of Vietnam (SBV) and commercial banks have asked the government to promptly handle capital increase for State-owned commercial banks.

As many as 88 percent of credit institutions expected their business performance will keep improving in 2019, of which 35 percent anticipated ‘significant improvement’.