Idle land and inefficient asset use

According to audit findings, several institutions are holding significant land assets that remain unused or underutilized.

The Vietnam Development Bank (VDB) currently has five land facilities covering around 2.5 hectares left vacant without construction. Meanwhile, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is managing 28 land sites totaling about 2 hectares, many of which are either awaiting development plans, temporarily used, or pending liquidation or return to the State.

Similarly, Vietnam Social Security holds 25 land facilities across various provinces that are no longer needed but have yet to be reassigned, despite being reported to the Ministry of Finance.

These cases highlight ongoing inefficiencies in land management, with valuable resources left idle instead of being deployed for productive use.

Investment inefficiencies and financial risks

The audit also identified several investments with low or negative returns.

At PVI, the parent company invested VND37.08 billion (US$1.45 million) in shares of DongA Bank, which has since been fully written off. Another investment of VND43.5 billion (US$1.7 million) in PetroVietnam Service Trading Corporation required provisions of VND39.41 billion (US$1.55 million).

PVI Insurance Corporation invested VND167.97 billion (US$6.6 million) in bonds issued by Song Da Thang Long JSC, for which it has made full provisions. It also placed VND103.38 billion (US$4.1 million) in deposits at OceanBank, with recovery timelines still unclear.

Additional investments include VND6 billion (US$235,000) in PetroVietnam Maintenance and Repair Corporation, which has not generated profits since 2011, and VND120 billion (US$4.7 million) in deposits at OceanBank by Hanoi Reinsurance Corporation, carrying potential recovery risks.

MB Securities still holds six unlisted equity investments worth VND117 billion (US$4.6 million), dating back to before its 2012 restructuring. Several of these companies are underperforming, with some failing to provide information or maintain contact.

Challenges in debt classification and policy compliance

The audit also found inconsistencies in loan classification at certain banks. At BIDV, adjustments were made to reclassify loan groups, reducing group 1 loans by VND302.02 billion (US$11.9 million) while increasing higher-risk categories, including group 5 loans by VND18.91 billion (US$740,000).

The Vietnam Bank for Social Policies was found to have issued loans to individuals not meeting eligibility criteria. Specifically, 391 cases involving VND20.76 billion (US$815,000) were granted to individuals who already had stable employment. Most of these loans have since been recovered.

In addition, irregularities were identified in social insurance payments. Authorities reported that VND115.13 billion (US$4.5 million) was paid to 2,128 individuals who did not meet the conditions for one-time social insurance benefits.

Health insurance payments also showed discrepancies, with VND10.67 billion (US$420,000) disbursed to medical facilities in violation of regulations.

Notably, payments totaling VND1.869 trillion (US$73 million) were made for dialysis services despite many machines not meeting regulatory standards. As of the end of 2024, 1,198 out of 4,330 dialysis machines had not been inspected, though this number was reduced to 330 by October 2025.

Broader system performance

Despite these issues, the audit acknowledged that monetary policy in 2024 was managed proactively by the State Bank of Vietnam, helping to keep inflation at 2.7%, maintain liquidity, and support economic growth.

Average lending interest rates stood at 8.03% by the end of December 2024, down about 1.23 percentage points compared to the end of 2023.

Most financial institutions met safety indicators and remained profitable, with bad debt ratios at some banks kept below 3%.

However, several targets under the 2021-2025 plan to restructure credit institutions and address bad debts have not been fully achieved, or face significant challenges in implementation.

The findings underscore a broader issue: while the financial system remains stable overall, inefficiencies in asset use, investment decisions, and compliance continue to weigh on its long-term effectiveness.

Tam An