Irrecoverable debts make up more than half of bad debts

Irrecoverable debts kept increasing in 2019’s first three months and currently account for more than 50 per cent of the 22 banks’ bad debts.

Irrecoverable debts make up more than half of bad debts
As of the end of the first quarter, irrecoverable debts stood at VND46.4 trillion ($2 billion)

As of the end of this year’s first quarter, the banks held more than VND84.2 trillion ($3.66 billion) in bad debts, up 5.6 per cent against early 2019. The amount included VND46.4 trillion ($2 billion) of irrecoverable debts, up 4 per cent against the beginning of the year.

VietinBank has the most serious case of irrecoverable bad debts, with more than VND10.488 trillion ($456 million), up nearly 11 per cent against early this year. Previously, the bank’s irrecoverable debts sharply expanded by 45 per cent last year, from VND5.217 trillion ($226.8 million) in 2017 to VND9.47 trillion ($441.7 million).

Following VietinBank is BIDV with the irrecoverable debts of more than VND7.231 trillion ($314.4 million), although unlike the former, this is only a 1 per cent increase against early 2019. However, the rate is 22 per cent than in the same period last year.

Sacombank’s irrecoverable debts were VND5 trillion ($217.4 million), down 37 per cent on-year. Vietcombank and SHB also hold VND4.926 trillion ($214.2 million) and VND4 trillion ($173.9 million) in irrecoverable debts, respectively.

 

Techcombank, VPBank, and ACB also reported increasing irrecoverable debts in the first quarter with the rates of 36, 15, and 11 per cent, respectively.

Although Resolution No.42/2017/QH14 outlining the pilot resolution of the bad debts of credit organisations, banks have been still facing problems in the area. According to the banks, in addition to the unresolved bad debts, new debts amidst increasing credit volume carry the risk of becoming bad debts as well.

Last month, the State Audit Office of Vietnam (SAV) has recently published the audit plan on carrying out Resolution 42. Ho Duc Phoc, auditor general of the SAV, who approved the plan, said that the authority will assess the performance of bad debts resolution as well as investigate and supervise the banks’ activities to collect bad debts.

By auditing specific dossiers, the SAV will clarify what difficulties the banks are facing in resolving bad debts. As for VAMC, the authority will also assess the trading and resolution of bad debts and securities purchased from commercial banks. VIR

Hoang Van

 
 

Other News

.
Vietnam manufacturing output declines on Covid-19 outbreak
Vietnam manufacturing output declines on Covid-19 outbreak
BUSINESSicon  05/09/2021 

Vietnam’s manufacturers are facing an uphill task to keep operation amid restriction measures.

VIETNAM BUSINESS NEWS SEPTEMBER 5
VIETNAM BUSINESS NEWS SEPTEMBER 5
BUSINESSicon  05/09/2021 

Ports see increase in goods handling despite COVID-19

Finance Ministry urges stricter control over risky corporate bonds in Vietnam
Finance Ministry urges stricter control over risky corporate bonds in Vietnam
BUSINESSicon  05/09/2021 

The Ministry of Finance (MoF) has tightened control over risky corporate bond issuance.

More sci-tech content in upcoming China-ASEAN Expo
More sci-tech content in upcoming China-ASEAN Expo
BUSINESSicon  06/09/2021 

The whole universe hidden in the VR glasses, magnificent images shown on transparent screens, unmanned aircraft applied in seeding and fertilization..., sci-tech exhibition has become the new hot spot in the China-ASEAN Expo (CAEXPO) in recent years.

VIETNAM BUSINESS NEWS SEPTEMBER 4
VIETNAM BUSINESS NEWS SEPTEMBER 4
BUSINESSicon  04/09/2021 

Vietnam scores high in employee experience

Foreign investors keen on education
Foreign investors keen on education
BUSINESSicon  04/09/2021 

Overseas funds continue to cash in on Vietnam’s education sector with a view to diversify investment portfolios.

Rice exporters feel strain of restrictions
Rice exporters feel strain of restrictions
BUSINESSicon  04/09/2021 

The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

Garment and textile groups bemoan curbs
Garment and textile groups bemoan curbs
BUSINESSicon  04/09/2021 

With the autumn-winter season coming up, Vietnam’s garment and textile industry could cash in on the increased demand for clothing. 

CAEXPO embraces RCEP opportunities
CAEXPO embraces RCEP opportunities
BUSINESSicon  04/09/2021 

Cooperation is deepened to improve substantial economic and trade results.

E-commerce platform imports billions of US dollars of Chinese goods
E-commerce platform imports billions of US dollars of Chinese goods
BUSINESSicon  04/09/2021 

The Vietnamese Ministry of Finance believes that it is necessary to have regulations to control exports and imports transacted through e-commerce platforms.

Experts propose solutions to supply chain disruptions caused by COVID-19
Experts propose solutions to supply chain disruptions caused by COVID-19
BUSINESSicon  03/09/2021 

A group of experts of the Hanoi-based National Economics University have put forward several immediate solutions to remove bottlenecks and connect disrupted supply chains that have impacted localities hit by COVID-19.

Agriculture Ministry to open new path for farm produce sales
Agriculture Ministry to open new path for farm produce sales
FEATUREicon  04/09/2021 

“We have to figure out a new ‘farm produce path’ that allows us to connect fields and markets,” said Minister of Agriculture and Rural Development Le Minh Hoan.

VIETNAM BUSINESS NEWS SEPTEMBER 3
VIETNAM BUSINESS NEWS SEPTEMBER 3
BUSINESSicon  03/09/2021 

Bubbles heap pain on vital manufacturers

Five-year restructuring plan aims to improve national economic competitiveness
Five-year restructuring plan aims to improve national economic competitiveness
BUSINESSicon  04/09/2021 

The Ministry of Planning and Investment has said that it is coordinating with relevant ministries, agencies and localities to build a national economic restructuring plan for the 2021-2025 period, 

On-line CAEXPO: Exploiting potential of Internet for new growth
On-line CAEXPO: Exploiting potential of Internet for new growth
BUSINESSicon  03/09/2021 

On the platform of on-line China-ASEAN Expo (CAEXPO), ASEAN Pavilion, China Pavilion, and other virtual pavilions can be found on the homepage.

The 'test' for the future of seafood exports
The 'test' for the future of seafood exports
FEATUREicon  05/09/2021 

If Vietnam does not focus on removing the IUU (Illegal, unreported and unregulated fishing) yellow card and violations continue, it is very likely that the EC will switch from yellow card to red card.

Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
FEATUREicon  03/09/2021 

Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.

Vietnam Airlines pilots IATA Travel Pass on flight to Europe
Vietnam Airlines pilots IATA Travel Pass on flight to Europe
BUSINESSicon  03/09/2021 

National flag carrier Vietnam Airlines successfully piloted the IATA Travel Pass on a flight from Hanoi to London on September 2 with the participation of 18 passengers.

The biggest decline in VN labor market in a decade
The biggest decline in VN labor market in a decade
FEATUREicon  06/09/2021 

The Covid-19 pandemic caused turbulence in Vietnam's labor market in 2020. 

Online Vo So platform sells food in HCM City
Online Vo So platform sells food in HCM City
BUSINESSicon  02/09/2021 

After HCM City resumed operation of goods delivery services on August 31, Viettel Post and Vo So e-commerce platform opened an "online market" to provide food and essential goods for people at hcm.voso.vn.

 
 
 
Leave your comment on an article

OR QUICK LOGIN