Sign up | Log in



Home  >>   Daily News  >>Vietnam>>Economy>>Creditors may be allowed to go bankrupt
NEW UPDATES Asean Affairs  25 January  2016  

 Creditors may be allowed to go bankrupt

The State Bank of Viet Nam (SBV) would consider allowing some ailing financial companies and people's credit funds to declare bankruptcy this year, according to Deputy Governor Nguyen Phuoc Thanh.

The plan is to gradually inform the market about the bankruptcy in the banking system and warn bank owners to be much more serious in doing business, Thanh said.

Though there had been some distressed credit institutions in the domestic banking system, the country had not seen any bankruptcy issues for the past years as the central bank was concerned that it could have a negative effect on the entire banking system.

Under a restructuring scheme for the banking system from 2011 to 2015, the number of commercial banks cut from 42 to 34. Besides restructuring 10 banks through mergers, the central bank dealt with three ailing banks – Ocean Bank, Viet Nam Construction Bank (VNCB) and Global Petroleum Bank (GPBank) – by acquiring them at zero dong.

With the acquisition, the SBV currently holds stakes in eight banks, instead of five it held before 2011. Total charter capital owned by the SBV in the eight commercial banks by the end of last year increased 1.7 times to more than VND113 trillion (US$5.15 billion). The figure is equal to roughly 37 per cent of total charter capital of 34 commercial banks in Viet Nam.

Thanh said that transparency in the banking system has improved significantly in the past four years. Cross ownership at banks has been put under control and liquidity of the banking system has been secured.

However, Thanh required banks to take more drastic measures this year to enhance their financial and governance status to meet the rising demands.

He said that the central bank this year would also continue to ramp up the merger and acquisition of ailing credit institutions with priority given to those which are done voluntarily. If the institutions did not approach voluntarily, the central bank would intervene.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           January 25 , 2016 Subsribe Now !
• Viet Nam luring investment from Asian neighbours: planning ministry Subcribe: Asean Affairs Global Magazine
• Myanmar released 29 political prisoners before power transfer
• Global slowdown sees a rise in jobless and vulnerable workers
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Creditors may be allowed to go bankrupt
Malaysia CPI up 2.7 per cent in December 2015
Asean Analysis                   January 25, 2016
• Asean Analysis January 25, 2016
For China, a Race to Retain Appeal in Southeast Asia
Advertise Your Brand

Asean Stock Watch January 22, 2016
• Asean Stock Watch-January 22, 2016
The Biweekly Update
• The Biweekly Update January 25, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand