Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Vietnam  >>Finance  >> Billions in bad loans resolved
NEW UPDATES Asean Affairs  21 May  2015  





Billions in bad loans resolved

Vietnam:The banking system has resolved roughly VND311.1 trillion (US$14.33 billion) of non-performing loans (NPLs) in 2012-14, accounting for 67 per cent of total NPLs reported in September 2012.

These results were recently reported by the State Bank of Viet Nam's governor, Nguyen Van Binh, to deputies of the National Assembly.

The ratio of NPLs had been reflected more accurately and transparently since late 2014, Binh said, adding that the NPL ratio had declined from 3.61 per cent in late 2013 to 3.25 per cent in late 2014.

Though the NPL ratio inched up in the first two months of this year to 3.59 per cent, it was still within the range of what was forecast, and had remained under control of the central bank, Binh said, explaining that NPLs often increased in the first months of the year, before declining sharply at the year end.

Binh said that the central bank would continuously instruct commercial banks and credit institutions to handle NPLs strictly through debt classifications and risk provisions in accordance with legal regulations.

The central bank has targeted to resolve at least 60 per cent of the total number of NPLs that they are supposed to handle in 2015 by June 30. Further, they have to transfer at least 75 per cent of the total debts that they assign for sale to the national debt dealer, Viet Nam Asset Management Company (VAMC), this year.

Additionally, the central bank is to take bold measures, including restrictions on profit sharing, to punish credit institutions and commercial banks whose NPLs are large and inactive.

VAMC chairman Nguyen Quoc Hung said that VAMC estimated that it had bought roughly VND40 trillion ($1.84 billion) of NPLs at their book value during the first five months of this year, out of VND80 trillion ($3.68 billion) planned for the entire year. More than 90 per cent of the debts bought by VAMC were mortgaged by real estate assets.

The VAMC's NPL purchase, to date, has been relatively smooth, Hung said, adding that all credit institutions, including State-owned commercial banks, had so far suggested they would sell their NPLs to VAMC.

The Bank for Investment and Development of Viet Nam (BIDV), to date this year, sold roughly VND3 trillion ($138.24 million) of its NPLs to VAMC, out of VND8 trillion ($368.66 million) planned for the entire year.

Vietinbank has also plans to sell roughly VND4 trillion ($184.33 million) of NPLs to VAMC this year, while Vietcombank expected VND1 trillion ($46.08 million) in NPLs to be sold to VAMC in the second quarter of this year.



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
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

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
 
or
submit your comment in the box below



 
Today's  Stories                           May  21 , 2015 Subsribe Now !
• Samsung begins work on $1.4b complex in City Subcribe: Asean Affairs Global Magazine
• Myanmar Property Awards inaugural shortlist unveiled
• BI promises to ease policy to spur growth
Research Reports
on Thailand 2007-2008

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

• Amru nearing organic rice deal with the US
• Billions in bad loans resolved
Asean Analysis                   May 15, 2015
• Asean Analysis May 15, 2015
Washington Needs a More Holistic View of Myanmar’s Elections
Advertise Your Brand

Asean Stock Watch  May 20,  2015
• Asean Stock Watch-May 20, 2015
The Biweekly Update
• The Biweekly Update May 15, 2015

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

ASEAN  ANALYSIS

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

 


Name

Name


Email

Email



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

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com