Vietnamplus

Twelve out of 40 commercial banks have so far cleared all their non-performing loans (NPLs) kept at the Vietnam Asset Management Company (VAMC).

The join-stock bank Sacombank has said its last year’s pre-tax profits amounted to 3.217 trillion VND (about 139 million USD), 21.4 percent higher than its plan for the year.

Minster of Finance Dinh Tien Dung on January 13 asked for greater efforts from the tax sector to well implement the budget collection plan for 2020 assigned by the National Assembly and the Government.

The Ministry of Finance aims for State budget revenue in 2020 to be 3 percent higher than the estimate set by the National Assembly, said Minister Dinh Tien Dung on January 10.

It was a surprise as a number of domestic commercial banks have reported big profits after years of poor performance, but this showed the country’s business environment has improved.

State budget collection made up 25 percent of the national gross domestic product (GDP) in 2019, with tax and fee accounting for 21 percent, the Ministry of Finance reported.

The Southeast Asia Joint Stock Commercial Bank (SeABank) has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), thereby helping the bank proactively monitor and handle bad debts.

The ratio of bad debts in the domestic banking system will be dropped below 3 percent by the end of 2020, making contribution to restructuring the macroeconomic policy.

Nearly 9.6 trillion VND (417.3 million USD) worth of bad debts were handled each month from August 15, 2017 to August 31, 2019, or 4.7 trillion VND higher than that during the 2012 – 2017 period.

The "Vietnam: Strengthening banking sector soundness and development" project is expected to help the State Bank of Vietnam to better anticipate and increase resilience to shocks.

The World Bank (WB) and the State Bank of Vietnam (SBV) on October 1 inked a grant agreement worth 2.2 million USD to implement a project aimed at strengthening the soundness and resilience of Vietnam’s banking sector.

Many banks are auctioning mortgaged assets, mainly real estate, worth trillions of VND to speed up the resolution of non-performing loans.

The National Assembly Standing Committee convened its 37th session in Hanoi on September 9 under the chair of NA Chairwoman Nguyen Thi Kim Ngan.

The General Department of Taxation (GDT) has proposed to erase 12 trillion VND (516 million USD) out of total 30 trillion VND irrecoverable tax debts.

A highlight of the banks' business performance in the first six months was their impressive before-tax profit.

The Government’s foreign debts have been declining sharply and under the Government’s control, Deputy Prime Minister Vuong Dinh Hue said while chairing a meeting with leaders of some ministries, sectors and the National Financial Supervisory Commission in Hanoi on August 9.

The General Department of Taxation has collected over 19.4 trillion VND (835 million USD) in tax debts as of July 31, up 2.4 percent from the same time last year.

Though many banks have posted positive profits in the first half of 2019, their bad debts have continually increased in the wake of high credit growth in risky business segments.

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.

Recent years have seen an increase in the number of foreign investors fleeing Vietnam after facing financial trouble.