Moody’s Investors Service said that Vietnam’s real GDP growth will remain robust, averaging 6.7 percent in 2018, in its annual credit analysis released on April 3.
The speedy repossession of collateral is a credit-positive step for Vietnamese banks, which continue to grapple with legacy asset-quality issues caused by rapid credit growth and loose underwriting standards of the past decade, Moody’s Investors Services said in a note on August 28.
Fitch Ratings has released a report on Vietnam’s banking sector, saying that Vietnam’s strong economic performance is helping the country attract much-needed foreign capital into its banking system.
Vietnam wants suggestions from its partners, including the World Bank (WB), about how to tackle difficulties in balancing the State budget as well dealing with public and bad debts.
The outlook for the Vietnamese banking system is stable, driven by the country's good economic growth and stabilising asset quality and good liquidity.
Bank credit growth so far this year stands at 7 percent year-on-year, outstripping deposit growth, which is only 5 percent, Dau Tu Chung Khoan newspaper reported.
Credit activities have developed strongly in the first months of 2015, a
positive sign for the economy's recovery, independent market observers
have said.
The State Bank of Vietnam (SBV) will continue to allocate credit growth
rates for commercial banks this year, based on the banks' health and
business performance.
Bad debt has decreased by 36 trillion VND (1.7 billion USD) thanks
to the efforts of debt restructuring, debt payment delay and quittance,
according to the State Bank of Vietnam (SBV).
The central bank will restrain credit growth this year to no more than 30 percent, under a plan approved by the Government, State Bank of Vietnam Governor Nguyen Van Giau said on June 17.
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