Update news bad debts
Forty-nine BOT (build-operate-transfer) transport projects have been reported as having revenue below expectations.
Overdue debts, which are increasing rapidly during Covid-19, will adversely affect business results and capital growth capability of many commercial banks in Vietnam.
Commercial banks are attempting to sell off a host of mortgaged assets, including real estate and cars, to speed up the settlement of huge bad debt.
Growing bad debts reaching hundreds of millions of US dollars keep pressuring BIDV, Vietcombank, and VietinBank.
Local cement company Cong Thanh Group’s trillion-VND debts at Vietinbank will be shifted to Vietnam Asset Management Company (VAMC).
VietNamNet Bridge – In 2019 the State Bank of Viet Nam has set a credit growth target for the banking sector of 14 per cent, lower than the rates of 18 per cent in 2017 and 17 per cent in 2018.
Governor of the State Bank of Vietnam (SBV) Le Minh Hung was questioned on the pace of handling bad debt and banks with bad performances during the question-and-answer session on November 1 at the 14th National Assembly’s ongoing sixth session.
Since Vietnam Asset Management Company seized Sai Gon One Tower using the authority conferred on it by Resolution 42 on settling bad debts, several banks have followed suit and offered mortgaged assets for sale
Governor of the State Bank of Viet Nam Nguyen Van Binh has set a new target to bring down non-performing loans (NPLs) to less than 3 per cent by September.