Deputy Prime Minister Vuong Dinh Hue on September 13 received representatives from Mitsubishi, Deloitte, Hanwha Energy, McKinsey, and HSBC in the framework of the World Economic Forum on ASEAN in Hanoi.
The Vietnam Asset Management Company (VAMC) plans to resolve at least 140 trillion VND (5.95 billion USD) of non-performing loans (NPLs) from now until 2020, of which 34.5 trillion VND will be settled this year.
About 90 percent of social insurance funds are currently invested in government bonds (G-bonds), Dao Viet Anh, Deputy General Director of the Vietnam Social Security (VSS), said at a seminar last week.
Prime Minister Nguyen Xuan Phuc said on August 30 that ministries, sectors and localities must not underestimate their tasks in the four remaining months of 2018 but carry out drastic solutions as many difficulties still arise from the domestic and global situation.
The State Bank of Vietnam (SBV) needed to speed up the settlement of non-performing loans (NPLs) to bring down the bad debt ratio of the entire banking system, including both NPLs owned by credit institutions and the Vietnam Asset Management Company (VAMC), to below 3 percent by 2020.
Settling non-performing loans (NPLs) has been easier since the application of Nation Assembly’s Resolution 42 a year ago, but detailed guidance is still needed to make the use of the regulation smoother, industry insiders said.
The Vietnamese Government plans to reduce the cash payment proportion to less than 10 percent by 2020 and 8 percent by 2025, which can be done by expanding the network of automatic teller machines (ATMs) and points of sale (POS) nationwide.
The ratio of the non-performing loans (NPLs) at commercial banks fell from 3.61 percent at the end of 2013 to 2.18 percent at present, according to Chairman of the Vietnam Asset Management Company (VAMC) Nguyen Tien Dong.
Many banks have reported impressive profit growth in the first half of 2018, compared to the same period last year, thanks to the high credit growth and the improvement from the retail banking segment.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been awarded the “Mobile Banking Initiative of the Year” title by the Asian Banking & Finance (ABF) magazine.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has been named the best bank of Vietnam in 2018 by FinanceAsia.
Most credit institutions reported good results in the second quarter of this year, and expected their business performance throughout 2018 to be better than the previous year.
Vietcombank will become the first major State-owned bank to apply Basel II standards, two years earlier than the deadline set by the State Bank of Vietnam (SBV).
The banking sector is optimistic about its growth prospect in 2018 as all of surveyed banks expect the growth rate to be more than 10 percent.
Despite the current increasing foreign investment inflows, merged and acquired banks will consider selling stakes to foreign investors after completing the restructuring to up the attractiveness of sales, bank officials said.
The interest rates were kept stable in the first six months of 2018 while the lending rates for priority fields have decreased.
The State Bank of Vietnam (SBV) will continue managing monetary policy in an active, cautious and flexible manner and combine with other fiscal and macro-economic policies to control inflation, ensure credit institutions’ liquidity, stabilise monetary and foreign exchange markets.
The banking industry has been radically restructuring credit institutions in combination with handling bad debts to ensure their safe, healthy and sustainable growth, said a central bank senior official.
