Vietnamplus

The Asia Commercial Joint Stock Bank (ACB) has set a growth target of over 10 percent in pre-tax profit to more than 10.6 trillion VND (461.5 million USD) this year.

The Technological and Commercial Joint Stock Bank (Techcombank) has set a target of posting consolidated pre-tax profit of 19.8 trillion VND (863.76 million USD) this year, a year-on-year surge of 25.3 percent.

Banks will have to set aside money for potentially unrecoverable COVID-19 affected loans from this year, according to an amended circular drafted by the State Bank of Vietnam (SBV).

Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) recorded a bad debt ratio of 0.6 percent last year, the lowest so far and in the sector, compared to 0.78 percent in 2019.

The State Bank of Vietnam (SBV) has proposed expanding the Vietnam Asset Management Company's (VAMC) operations, saying the agency should purchase and sell bad debts and assets of all sectors in the economy.

Non-performing loans (NPLs) among commercial banks increased sharply in the first three quarters of this year due to the adverse impacts of the COVID-19 pandemic.

The Politburo has decided to give a warning to Politburo member, Secretary of the Party Central Committee and head of the Party Central Committee’s Economic Commission Nguyen Van Binh as a disciplinary measure for his mistakes during the time he served as Governor of the State Bank of Vietnam.

The Government has directed the State Bank of Vietnam (SBV) to add non-performing loan (NPL) settlement regulations under Resolution No.42/2017/QH14 into the revised Law on Credit Institutions, SBV Deputy Governor Nguyen Kim Anh has said.

Vietnam would be in the grip of bad debts if the country does not have a professional debt trading market, according to insiders.

The pre-tax profit of the banking system in the second half of this year is estimated to fall 22.1 percent compared to the same period last year due to an increase in provisions for risky loans in the wake of the COVID-19 pandemic.

The 47th meeting of the National Assembly (NA) Standing Committee opened in Hanoi on August 10.

Non-performing loans are still increasing despite slow credit expansion as the COVID-19 pandemic stretches many businesses to their limits.

A number of banks have announced plans to auction off their collateral assets in an attempt to speed up bad debt recovery.

Businesses and local people in HCM City have had relatively low demand for capital due to the negative impact of the COVID-19 pandemic, resulting in the city’s credit growth in the first half of 2020 falling to its lowest level for many years.

The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally 50 trillion VND (2.15 billion USD) this year.

Commercial banks cut interest rates on 980 trillion VND (42.6 billion USD) worth of loans to support 318,000 COVID-19 affected individual and corporate borrowers by the end of April, the latest data from the State Bank of Vietnam (SBV) showed.

Credit institutions in Vietnam settled more than 26.94 trillion VND (1.17 billion USD) of non-performing loans (NPLs) in the first quarter of this year.

Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.

The Bank for Investment and Development of Vietnam (BIDV) has cleared all non-performing loans it had previously sold to the Vietnam Asset Management Company (VAMC), the bank’s Chairman Phan Duc Tu said.