VietNamNet Bridge – Vietnam’s public debt rose by about 12.2%, from 50% of GDP in 2011 to 62.2% at the end of 2015. Admitting the rapid increase of public debt, the Ministry of Finance (MOF) has confirmed that the structure of Vietnam's public debt is gradually being adjusted towards more sustainability with the ratio of foreign debt declining. Mr. Vo Huu Hien, Deputy head of the Debt Management and External Finance Department of the MOF, said the structure of public debt of Vietnam by the end of 2015 included: government debt accounting for 80.8%, Government guaranteed debt 17.8%; and local government debt 1.4%. In the government debt structure, the part of domestic debt rose from 39% in 2011 to 57% in 2015 while the proportion of foreign debt decreased from 61% in 2011 to 43% in 2015. Hien affirmed that such development is consistent with the national strategy on public debt and external debt in the 2011-2020 period and the vision to 2030. According to Hien, the … [Read more...] about What does the Finance Ministry say about Vietnam’s public debt structure?
As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. As a developing country which is integrating in the international economy, Vietnam increasingly needs investment for development. Public debts are still important financial sources to offset state budget deficit for economic growth and sustainable development. Public debt effectiveness depends largely on policies of debt management. … [Read more...] about Improving public debt management
The unexpected report about the banks’ bad debts to the real estate sector has been released by the National Finance Supervision Council, which shows that the actual bad debts are much higher than the figures announced before by government agencies. Actual bad debts 1.8 times higher than previously reported By the end of 2011, the total outstanding loans provided to fund real estate projects had reached 348 trillion dong. The figure, according to the National Finance Supervision Council, is 1.8 times higher than the figure released by commercial banks before, at 200 trillion dong. The Ministry of Construction and the State Bank of Vietnam were the two ministries which released the figure of 200 trillion dong, affirming that the real estate credit is not a worrying problem. Also according to the council, the actual bad debts of commercial banks are 8 times higher than the figures released by the banks themselves. This shows that since June 2011, when the bank bad debt problem … [Read more...] about Banks’ bad debts to real estate sector worse than initially reported
Ha Nam leads in basic construction debt Ngoc Lan By Ngoc Lan - The Saigon Times Daily HANOI – The northern province of Ha Nam has overtaken Ha Giang Province to become the leading debtor of contractors participating in State-funded basic construction projects. The Government’s recent report on public investment, State-owned enterprises and the banking system indicated the debt owed by the State to developers of basic construction projects in localities has outnumbered that at ministries and agencies. By the end of last year, the debt in basic construction projects funded by the State budget and government bond sales at around 23,400 projects exceeded VND57.9 trillion. Of which, the debt by the State made up VND51.1 trillion and dropped to nearly VND44.6 trillion by the end of June this year. As of end-June, the combined basic construction debt in 21 provinces was around VND35.5 trillion, much higher than the VND5.1 trillion at ministries and agencies. Ha Nam topped … [Read more...] about Ha Nam leads in basic construction debt
Eximbank still fares well despite high overdue debts By Thuy Trieu - The Saigon Times Daily HCMC - Vietnam Export Import Commercial Bank, or Eximbank, still sees robust growth this year despite its high ratio of overdue debts, estimated at over 6% of total outstanding loans, the bank's chief executive officer told shareholders on Saturday. Truong Van Phuoc told the bank's extraordinary meeting that Eximbank as of late October had achieved total assets of VND49.6 trillion, mobilization of VND32.3 trillion, and outstanding loans of VND22.37 trillion, increasing 47.2%, 41%, and 22% from early this year. In the first ten months of the year, the bank's pre-tax profit was VND1.19 trillion, up 116% from the same period last year. Of the total overdue debts, bad debts total VND619 billion, but the amount most at risk is only VND200 billion, Phuoc told shareholders. Under Vietnam's accounting standards, debts are classified into five groups, and those amounts falling into group three to group … [Read more...] about Eximbank still fares well despite high overdue debts