Credit institutions recover nearly 1.2b USD of bad debts in Q1 2020
Credit institutions in Vietnam settled more than 26.94 trillion VND (1.17 billion USD) of non-performing loans (NPLs) in the first quarter of this year.
A transaction office of the Bank for Investment and Development of Vietnam (BIDV) (Photo: VNA)
Hanoi (VNS/VNA)෴ - Credit institutions in Vietnam settled more than 26.94trillion VND (1.17 billion USD) of non-performing loans (NPLs) in the firstquarter of this year.
Thelatest report released this week by the State Bank of Vietnam (SBV) showedcredit institutions handled nearly 1.077 quadrillion VND of NPLs from 2012 tothe end of March this year. Withthe recovery, the bad debt ratio of the whole banking system has remained undercontrol at 1.77 percent of the total outstanding loans by the end of the firstquarter, meeting the Government’s target of keeping the rate below 3 percent in2020. Tocontinually boost the recovery of bad debts, SBV governor Le Minh Hung hasasked credit institutions to review and provide detailed roadmaps and solutionsfor settling their bad debts each year until 2022. Creditinstitutions have also been asked to look for buyers for the debts they sold tothe Vietnam Asset Management Company (VAMC), while the VAMC has been required tospeed up the handling of bad debts and collateral the company purchasedfollowing market-based mechanisms. TheSBV has also issued regulations and policies in line with internationalpractices to improve safety standards in banking, which has contributed tostronger governance and risk management capability under Basel II internationalbanking standards. Ina recent report, Moody's Investors Service pointed out that downside risksto asset quality of Vietnamese banks can arise from disruptions caused by theCOVID-19 pandemic, which, if prolonged, will lead to increases innon-performing loans in the manufacturing, trade and other sectors, given Vietnam'slarge exposure and close ties to global supply chains. Accordingto the rating agency, as for profitability, the gap will widen between banksthat have adopted the new Basel II capital standards and those that have not. Moody'salso expects that in 2020, the country's central bank will grant higher limitsfor loan growth to banks that have adopted Basel II and maintain goodfinancials. The higher growth limits will translate into larger gains inearnings and widen the profitability gap between banks that have and have notadopted the new capital standard./.
Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.
The Agriculture and Rural Development Bank (Agribank) has said it will increase the support level for its credit package worth 100 trillion VND (4.3 billion USD).
Interest rate cuts by the State Bank of Vietnam (SBV) and cost savings among credit institutions will pave the way for sustainable lending rate reductions, thus easing difficulties faced by businesses.
The State Bank of Vietnam (SBV)’s interest rate cut is a positive sign for the market and economy, especially for businesses with loans, according to experts.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Viettel was ranked third for overall mobile performance with a score of 82.56 just behind UEA’s e& (88.05) and Quatar’s Ooredoo (87.05) and ahead of Singapore’s Singtel (82.53). Vinaphone took second in 5G speed with a score of 78.11, trailing only behind e&.
A transaction office of the Bank for Investment and Development of Vietnam (BIDV) (Photo: VNA) 
