Restructuring consolidates financial health of banking sector

06:00 | 25/01/2022 Economy Follow Ven.vn on

(VEN) - The long and serious Covid-19 pandemic has affected the banking sector with bad debts and loans increasing in the third quarter of 2021. However, the 2021 banking business results were positive overall, creating momentum for 2022.

restructuring consolidates financial health of banking sector

Banking profits are forecast to grow in 2022

Posting growth despite pandemic

Demand for capital increased in the final quarter of 2021 after the prolonged social distancing that disrupted business and daily activity. To meet the demand, the State Bank of Vietnam (SBV) allowed some of the banks to extend their credit growth limits.

According to the SBV, by December 2021, outstanding credit balance for 23 policy credit programs of the Vietnam Bank for Social Policies reached VND245.199 trillion, an increase of 8.4 percent compared to a year ago.

Amid the complicated developments of the Covid-19 pandemic, the SBV directed credit institutions to assess the situation and develop plans to deal with bad debts, improve asset quality, control credit quality and limit new bad debts. From the outbreak of Covid-19 early in 2020 to December 20, 2021, credit institutions restructured repayment periods and maintained debt classifications with total value of outstanding loans moving to VND607 trillion. Interest rate exemptions and reductions were also applied for more than 1.96 million customers, with outstanding loans exceeding VND3,870 trillion.

Credit institutions offered service fee exemptions and reductions to support businesses and individuals affected by the pandemic. According to estimates, during the 2020-2021 period, total reduced service fees through the interbank electronic payment system and the Napas system reached about VND2.557 trillion.

Positive signals

Banks’ business activities are forecast to be improved in 2022. However, the level of growth depends greatly on Covid-19 prevention and control, financial-banking expert Nguyen Tri Hieu said. In addition, the government and the SBV’s policy is to continue to further reduce interest rates to support pandemic-hit businesses and individuals, which may affect banks’ profit growth.

Le Quang Trung, deputy CEO and head of the Treasury Division of the Vietnam International Bank (VIB), said bad debts were at high risk as all trade and production activities were halted during the social distancing period. However, the Vietnamese economy is gradually recovering and 70-80 percent of businesses have restarted their trade and production activities, making loan repayment more likely and reducing potential bad debts, Trung said.

After the restructuring period, the financial health of the banking sector has been steadily consolidated. In addition, many commercial banks have been racing to increase charter capital to boost their financial strength and meet the SBV’s regulations on capital adequacy ratio, creating a foundation for greater resilience.

A VND800 trillion support package, if approved and implemented, will support Vietnam’s economic recovery. Business activities of commercial banks will also thrive as enterprises have more cash flows and potential bad debts are reduced.

Thanh Thanh

See more news

Double rise in Viet Nam’s registered FDI in two months

06:03 | 03/03/2023 FDI

Viet Nam granted investment certificates to 261 FDI projects with the total registered capital worth over US$1.76 billion over the last two months of this year, up 42.6 percent in the number of projects and twice as high as a year ago in value.

Q1 economic growth drivers

06:00 | 28/02/2023 Economy

(VEN) - Investment, domestic consumption and foreign trade were the three drivers of Vietnam’s economic growth in February and the first quarter of 2023. The Government, ministries, sectors and localities are taking action to promote these forces.

Viet Nam vows to enhance negotiations on UK’s joining CPTPP

14:53 | 27/02/2023 Foreign trade

Viet Nam will continue its coordination with other members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to soon conclude the negotiations on the UK’s accession to the trade pact.

Vietnam’s logistics industry looks bright despite headwinds

11:28 | 24/02/2023 Economy

Vietnam’s logistics industry remains a bright spot amidst intensifying headwinds in the global market.

Turkey natural stone trade mission to Vietnam

15:55 | 21/02/2023 Economy

A B2B event to connect trade between Turkish and Vietnamese natural stone enterprises to create opportunities for Vietnamese businesses to approach international quality supplies.

Nationwide production resumes after Tet holiday

13:00 | 21/02/2023 Economy

(VEN) - The Lunar New Year has gotten off to a good start with manufacturers resuming production in the expectations of improved performance and achievements.

VN-Index to struggle at 1,060 points due to weak demand force

07:00 | 19/02/2023 Economy

The selling pressure was quite clear in the last trading session of the week as the market’s breadth inclined to the downside.

More Vietnamese farm products exported to Europe

11:30 | 15/02/2023 Economy

The central province of Quang Tri shipped its first batch of 15 tons of organic rice at a price of US$1,800 per ton to the European Union (EU) on February 13.

PM holds roundtable discussion with Brunei energy, oil and gas firms

09:00 | 12/02/2023 Vietnam and ASEAN

Prime Minister Pham Minh Chinh held a roundtable discussion with Brunei energy and oil and gas enterprises in Bandar Seri Begawan capital on February 11, as part of his ongoing visit to Brunei.

PM urges focus on investment, export and consumption

06:00 | 10/02/2023 Policy

(VEN) - Industrial production recovered across the board throughout Vietnam last year, with processing and manufacturing growing at a rate of 8.1 percent, according to a report presented at a recent conference organized by the Ministry of Industry and Trade (MoIT) and attended by Prime Minister Pham Minh Chinh.

Latest Most Read

Science, technology, innovation promoted to support national development

06:00 | 22/03/2023 Science - Technology

Various measures will be rolled out from now to 2025 to fine tune science and technology organisations and perfect the legal foundation for state management of science, technology and innovation.

Seafood exporters swim against trade tide

06:00 | 22/03/2023 Major exports

(VEN) - The EU-Vietnam Free Trade Agreement (EVFTA) has created major opportunities for Vietnamese seafood companies, but many Vietnamese firms are not sufficiently proactive and flexible in taking advantage of the deal.

IFC assists Vietnamese SMEs in expanding access to finance

22:55 | 21/03/2023 Economy

Airbus committed to expanding supply chain in Vietnam

14:23 | 21/03/2023 Support industries

Airbus committed to expanding supply chain in Vietnam

US businesses exploring investment, business opportunities in Vietnam

10:01 | 21/03/2023 FDI

Representatives of more than 50 US companies will visit Vietnam from March 21-22 to discuss investment and business opportunities under an annual programme hosted by the US-ASEAN Business Council.

Trade deal with EU a hit so far

06:00 | 07/03/2023 Vietnam and EU

(VEN) - Vietnam's exports to the EU have seen positive growth more than two years after the EU-Vietnam Free Trade Agreement (EVFTA) took effect in August 2020. Vietnam Economic News’ Nguyen Hoa spoke with Nguyen Anh Duong, Head of the Central Institute for Economic Management’s (CIEM) Department for General Economic Studies about these developments.

Vietnam slow to exploit Pacific Rim trade opportunities

06:00 | 09/03/2023 Vietnam and other regions

(VEN) - Vietnam is looking back at the first three years of the Pacific rim trade deal known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with a sense of accomplishment, but also frustration at unmet challenges.

Trade deal with UK bolsters Vietnamese exports

06:00 | 08/03/2023 Foreign trade

(VEN) - The United Kingdom is the world’s fourth largest importer, but Vietnam’s share accounts for less than one percent of its total import value, signaling ample room for increased Vietnamese exports to this market.

Vietnamese pomelos star in UK market

06:00 | 06/03/2023 Vietnamese Brands

(VEN) - First Dien pomelos from the northern province of Hoa Binh are now available on the shelves of Longdan supermarkets in the UK, welcomed by the Vietnamese community in the country and local consumers.

Xoan singing in Phu Tho Province

06:00 | 12/03/2023 Lifestyle

(VEN) - Xoan singing is an ancient art performed during the first two months of the lunar year and designated by the United Nations Educational, Scientific and Cultural Organization (UNESCO) as a valuable intangible cultural heritage of the northern Vietnamese province of Phu Tho. It is based on the Vietnamese practice of ancestor worship and dates back to the period of the 18 Hung kings who ruled northern Vietnam from 2879-258 BCE. However, some music researchers believe that Xoan singing emerged much later, during the Later Le Dynasty (1428-1789 AD), as the lyrics bear literary forms and styles of the period.

Multimedia

Video Longform Infographic Photo

50th anniversary of Vietnam-Belgium diplomatic relations

07:00 | 22/03/2023 Infographic

Vietnam and Belgium have experienced a 50-year partnership marked by sound friendship and fruitful cooperation.

Amazingly beautiful Ninh Thuan

09:13 | 20/03/2023 Video

(VEN) - The south central coastal province of Ninh Thuan is renowned for its beautiful, pristine beaches and vast white salt fields. Visitors are recommended to travel to the province from April to June to enjoy their summer vacations, and from August to October when the grape-harvesting season falls and unique local festivals of the Cham people take place.

Tra fish exports hold promise after China reopens borders

07:00 | 20/03/2023 Infographic

Tra fish exports are expected to recover shortly with China gradually reopening its borders.

Lao Cai Province welcomes first Chinese tourists after three years

08:49 | 17/03/2023 Tourism

Eighty Chinese tourists entered Vietnam via the Lao Cai International Border Gate on March 15 afternoon, marking the return of Chinese travellers to the northern mountainous province of Lao Cai after a three-year hiatus caused by the COVID-19 pandemic.

viet nams grilled bananas among worlds most delicious desserts

Việt Nam's grilled bananas among world’s most delicious desserts

06:00 | 20/03/2023 Lifestyle

CNN described the sweet course as crispy, smoky and fragrant, and best enjoyed with lightly sweetened creamy coconut milk and roasted peanuts.

Policy

Animal feed industry asks for import tax reduction on raw materials

09:55 | 20/03/2023 Policy

The Government has received a proposal from the Vietnam Feed Association to eliminate the import tax on soybean meal, currently set at 2%.

Over 250 petitions submitted to authorities on fragility of petroleum regulations

18:07 | 16/03/2023 Policy

The petitions concern the alteration of petroleum business restrictions in decrees No.83/2014/ND-CP and No.95/2021/NQ-CP, resulting in losses for retail establishments.

New legal documents in second half of February 2023

07:00 | 12/03/2023 Policy

VEN lists the latest legal documents issued by the Vietnamese Government, ministries and state agencies.

Companies allowed to make bond payments with other assets

07:00 | 09/03/2023 Policy

Companies shall be allowed to make bond payments with other assets, according to the Government's recently-released Decree 08/2023/ND-CP issued.

Industry & Trade

Offshore wind energy an essential base load power source: official

14:30 | 20/03/2023 Energy

Offshore wind energy has great potential to contribute to the energy security goals of Việt Nam, according to deputy head of the Party Central Committee's Economic Commission Nguyễn Đức Hiển.

Uncorking bottlenecks for support industry development

06:00 | 18/03/2023 Industry

(VEN) - Vietnam is mulling legislation to boost the low localization rate of its industrial production and means to modernize its support industries and increase their participation in the local and foreign value chain.

Da Nang greens textile-garment industry

13:00 | 17/03/2023 Energy

(VEN) - Textile and garment enterprises in the southcentral coastal city of Da Nang are seeking to green their production through the use of renewable energy, waste reduction and wastewater standardization.

High cost of construction materials puts pressure on Việt Nam's construction industry

10:13 | 15/03/2023 Industry

According to contractors and investors in Hà Nội, while the price of cement has stabilised, other essential building materials such as steel and construction sand continue to increase in price.

Investment

US businesses exploring investment, business opportunities in Vietnam

10:01 | 21/03/2023 FDI

Representatives of more than 50 US companies will visit Vietnam from March 21-22 to discuss investment and business opportunities under an annual programme hosted by the US-ASEAN Business Council.

Da Nang hopes for further investment from RoK city

09:13 | 17/03/2023 FDI

Secretary of the Da Nang municipal Party Committee Nguyen Van Quang said he hopes that the city of Daegu in the Republic of Korea (RoK) will cooperate with the Vietnamese central city and invest more in its hi-tech sector, along with education, training and tourism.

Initiative speeds up investment disbursement

06:00 | 14/03/2023 Domestic investment

(VEN) - Prime Minister Pham Minh Chinh has asked ministries, sectors and localities to ensure the quality and effectiveness of public investment projects and achieve a higher disbursement rate in 2023.

Hanoi builds synchronous policies to draw foreign investment

07:25 | 11/03/2023 FDI

A conference linking hundreds of Hanoi and Singaporean enterprises was held in the capital city of Hanoi on March 7. The event was co-hosted by the municipal Department of Industry and Trade, the Vietnam Trade Office in Singapore, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Vietnam Chamber of Commerce and Industry (VCCI).

Finance-Banking

Vietnam seeks response to corporate tax overhaul

06:00 | 20/03/2023 Finance-Banking

(VEN) - All European Union states and many other countries will introduce a global minimum tax (GMT) of 15 percent on large corporations by the start of 2024, and Vietnam is being urged to devise appropriate policies and adapt to the new taxation.

Vietnam’s regulatory interest rates to be reduced by 0.5-1 percent

07:05 | 16/03/2023 Finance-Banking

The State Bank of Vietnam (SBV) on March 14 issued two decisions to reduce regulatory interest rates by 0.5% to 1%, which will come into force on March 15.

Global Minimum Tax a head-scratcher for Vietnamese policymakers

06:00 | 13/03/2023 Finance-Banking

As many countries plan to adopt the Global Minimum Tax Rate (GMTR) in 2024, experts are concerned that the entry into force of the rate would discourage foreign companies from locating their operations in low-tax countries.

Program seeks to solve business capital needs

13:00 | 10/03/2023 Finance-Banking

(VEN) - A series of commercial banks have moved to reduce lending interest rates in response to strong messages by the Government and the State Bank of Vietnam (SBV) about supporting the economy and business sector.

Environment

Practical effective activities urged to mark World Water Day

10:03 | 20/03/2023 Environment

The Ministry of Natural Resources and Environment has asked other ministries, agencies, sectors, localities, and organisations to take practical and effective activities to mark the World Water Day (March 22), the World Meteorological Day (March 23), and the Earth Hour 2023 (March 25).

BKEET steams ahead with waste treatment

13:00 | 15/03/2023 Make in Vietnam

(VEN) - After research spanning 20 years, solid waste incinerators produced by the Bach Khoa Hanoi Energy and Environment Joint Stock Company (BKEET) are operating across the country.

Tree planting campaign targets carbon neutrality

06:00 | 13/03/2023 Environment

(VEN) - Vietnam has embarked on a nationwide tree planting campaign designed to benefit the environment and enhance the quality of life.

Can Tho, USAID foster collaboration to mitigate climate change effects

09:00 | 11/03/2023 Environment

Leaders of the Mekong Delta city of Can Tho on March 9 had a working session with a delegation from the United States Agency for International Development (USAID) led by its Administrator Samantha Power, during which the two sides discussed collaboration in climate change response and how to support people affected by the natural phenomenon.

Science - Technology

Science, technology, innovation promoted to support national development

06:00 | 22/03/2023 Science - Technology

Various measures will be rolled out from now to 2025 to fine tune science and technology organisations and perfect the legal foundation for state management of science, technology and innovation.

Vietnam introduces automated sorting system

13:00 | 20/03/2023 Make in Vietnam

(VEN) - The successful design, manufacturing and operation of an automatic goods sorting system has contributed to optimizing the production process and cutting the costs of logistics enterprises. Vietnam Economic News’ Quynh Nga interviewed Dr. Phan Dang Phong, Director of the National Research Institute of Mechanical Engineering (NARIME) under the Ministry of Industry and Trade (MoIT), about this technology.

Domestic ICT firms well-positioned to reach out to the world

06:00 | 20/03/2023 Science - Technology

Vietnam's information and communication technology (ICT) companies are well-positioned to make strong breakthroughs and reach out to the world in the near future, on the back of widespread Internet access, abundant workforce and support from authorities at all levels.

Innovation platforms boosting sustainable development announced

Restructuring consolidates financial health of banking sector

See also

See more news

Multimedia