VietNamNet Bridge – The macro economy has started showing signs of recovery with growth seen in most industries in the year’s first half, but such achievements are still fragile,

Chasing for debtors is really a strained race that commercial banks have to use all of their mental power and material resources to obtain their goal.

The bailouts, if they are launched, should target consumers in order to stimulate the demand, experts say, warning that the deflation, if it occurs, would be more dangerous than the inflation.

Accessing bank loans had never been an easy thing for small and medium enterprises (SMEs). However, things have become quite different -- banks have been trying to persuade SMEs to borrow money.

VietNamNet Bridge – Some economists say commercial banks now make “super profit” when keeping the input and output interest rate margin at six percent. Meanwhile, banks have denied this.

Since commercial banks have lowered the interest rates, depositing has become less attractive in the eyes of investors.

VietNamNet Bridge – Vietnam lacks the medium size businesses which can act as the bridge connecting enterprises and join the global supply chain.

The Governor of the State Bank of Vietnam has decided to delay the implementation of the Circular No. 02 guiding the provisioning against the risks in credit activities.

While the profits from the credit activities decreased significantly in 2012, the proportion of income from the investment in government bonds tends to increase.

Despite the successive interest rate reductions, the interest rates in Vietnam are still the highest in the region.

Commercial banks have been told by the State Bank to lower the deposit interest rate to 7.5 percent per annum. However, if they do, they would not be able to attract deposits.

Commercial banks have quietly reduced the deposit interest rates because of the low demand for loans. Investors have been in a divided mind as to where to pour money to since all the investment channels remain unattractive.

Issuing local authorities bonds proves to be the only solution for localities now to cover the local budget deficit. However, this may be a big threat, according to experts.

VietNamNet Bridge – The tentative suggestion on requiring via-bank payment for the transactions of valuable products, to many people, is just “trifle,” and raises no worry to them, because they believe they can play tricks to dodge the laws.

Commercial banks keep offering high interest rates to attract more deposits from the public. The business circle affirms it is thirsty for capital, while workers complain about modest Tet bonuses. Where has the cash gone, then?

VietNamNet Bridge – The Vietnamese banking system experienced a stormy year 2012. However, no collapse or disaster occurred.

The State Bank of Vietnam successfully eased the interest rates in 2012 in order to make it easier for businesses to access bank loans. However, there is always the other side of a coin.

The biggest obstacle for finance institutions to expand consumer finance services is the government’s policy which does not give support to the sector.

Whether Vietnam can settle bad debts or not will decide how the Vietnam’s national economy performs in 2013. Meanwhile, it’s still unclear where the money to settle the bad debts comes from.

Experts believe that consumer finance would witness a boom in 2013, when there are all favorable conditions for the market to develop.