Vietnam credit system overcomes biggest test yet in Covid-19: PM
The Hanoitimes - While the banking has to continue its efforts to deal with bad debts, credit institutions are required to support the economic recovery efficiently, said Prime Minister Nguyen Xuan Phuc.
In the past six months, Vietnam’s credit system has not only overcome difficulties caused by the Covid-19 pandemic, its biggest test yet, but also plays a great part in ensuring the country’s positive economic growth, according to Prime Minister Nguyen Xuan Phuc.
|Prime Minister Nguyen Xuan Phuc at the meeting. Photo: VGP.|
While the banking sector has to continue its efforts to deal with bad debts, credit institutions are required to support the economic recovery efficiently, Phuc said at a government meeting to discuss the results of the three-year implementation of Resolution No.42 on restructuring of credit institutions and handling of bad debt on July 27.
Over the past three years, the country's banking system has transformed significantly, Phuc asserted.
To date, its total assets and equity have increased by 5%, and more importantly, the bad debt ratio have been reduced to 1.63% of total outstanding loans, or 4.43% if included bad debts sold to the central bank – run Vietnam Asset Management Company (VAMC) and potential non-performing loans.
According to Phuc, state-owned commercial banks (BIDV, Vietinbank, Vietcombank, Agribank) continue to play a key role in the banking system, accounting for 42.8% of total assets and 47.9% of outstanding loans in the banking sector.
In the coming time, Phuc requested the banking system to step up restructuring process of credit institutions to ensure smooth operation and provide much-needed support for the economy during the Covid-19 crisis.
As of June 29, Vietnam’s credit growth stood at 3.26% against end-2019, a significant increase compared to a 1.96% expansion recorded at the end of May.
Governor of the State Bank of Vietnam Le Minh Hung said at a government meeting on July 2 this indicated the credit demand has partially recovered following low growth rates in April and May at 0.12% and 0.53%, respectively.
- Vietnam stock market projected to get status upgrade in 2021
- Vietnam bond market contracts 1.7% to US$58.2 billion in H1: ADB
- Cryptocurrency is not a legal payment method in Vietnam: C.bank
- Weak credit demand leads to credit growth at only 4.81% in Jan-Sept
- Strong liquidity in Vietnam stock markets boosts stock exchanges revenue
- Large growth potential for Vietnam banking services in long-term
- Vietnam c.bank to finalize legal framework for fintech, digital banking
- Vietnam benchmark Vn-Index expected to surpass June’s peak to 920 in Sept
- Vietnam 2020 government debt to stay in line with current sovereign rating: Fitch
- USD/VND rate expected to remain stable until year-end
Actual FDI in Vietnam down 3.2% to US$13.76 billion in Jan-Sept
Vietnam ranks fourth on Agoda 2020 travel wishlist
Telehealth in Vietnam connects over 1,000 health centers
Vietnam receives first int'l commercial flight after six months
Apple partner Pegatron mulls US$1-billion investment in hi-tech projects in Vietnam
Hanoi’s weekend pedestrian streets allowed to reopen from September 18
European investors propose US$1 billion logistics project in Vietnam
Vietnam says ASEAN doesn’t want to get trapped between competition of major powers
Vietnam launches advisory message to prevent Covid-19 spread