Vietnamplus

The 10th session of the 14th National Assembly Standing Committee commenced in Hanoi on May 15.

After a period of actively selling non-performing loans to the Vietnam Asset Management Company (VAMC), banks are buying back the debts from the VAMC to handle by themselves.

The Vietnam Asset Management Company will take drastic measures to recover around 33 trillion VND of non-performing loans this year, VAMC Chairman Nguyen Tien Dong said.

Dong A Bank has delivered a steady performance under the State Bank of Vietnam's special supervision, since August, recovering nearly 4.2 trillion VND (185 million USD) of its non-performing loans.

Settlement of bad debts has shown positive signs after some banks announced they would buy back all their non-performing loans they sold to the Vietnam Asset Management Company (VAMC).

In the third quarter of 2016, Kienlongbank’s gross profit decreased by nearly 12 percent.

Ho Chi Minh City’s bad debts had decreased to 3.8 percent of total credit outstanding balance by the end of August, said Director of the State Bank of Vietnam’s municipal branch To Duy Lam.

There is an abundant supply of housing, prices are steady, lending to developers and home buyers is increasing, and bad debts are low.

The State Bank of Vietnam (SBV) has reminded foreign credit institutions and bank branches of its rollover loan requirements.

Non-performing loans (NPLs) as of the end of May accounted for 2.78 percent of the entire banking system’s total outstanding loans.

Though the bad debt ratio of the banking system has been reported to drop to below 3 percent of its outstanding loans, how to deal with the amount of bad debt is still a troublesome job.

The National Financial and Monetary Policy Advisory Council will concentrate on dealing with the reorganisation of credit institutions and State-owned enterprises, and handling bad debts.

Deputy Prime Minister Vuong Dinh Hue and the Vietnam Asset Management Company (VAMC) discussed the settlement of bad debts during a working session in Hanoi on April 27.

The Vietnam Development Bank needs to accelerate restructuring for more effective operation and sustainable development, Head of the Party Central Committee’s Economic Commission Vuong Dinh Hue has sa

The Government is on track to settle its bad debts and cross-ownership, under a scheme to restructure credit institutions from 2011 to 2015.

The Vietnam Assets Management Company (VAMC) has issued special bonds to purchase over 92 trillion VND (4.18 billion USD) worth of bad debts from the beginning of this year to October 20.

The Vietnam Asset Management Company has begun to issue a new class of bond against bad debts that can be traded between the central bank and lenders as well as among the latter.

From 2012 to August 2015, credit organisations handled 424.14 trillion VND worth of bad debt, bringing the ratio of bad debt to 3.21 percent this August from 4.93 percent in September 2012.