Doubtful debts and bad debts

Illustrative photo (Source: moit.gov.vn) Hanoi (VNS/VNA) - Vietnam is targeting to control public debt below 60 percent of gross domestic product (GDP) by 2030 to ensure debt safety and national financial security. The goal was highlighted in the public debt strategy by 2030. Deputy Minister of Finance Ta Anh Tuan said at a two-day workshop held in Thanh Hoa province on June 21 that the public debt strategy issued on April 14 played an important role in the socio-economic development in the 2021-2030 period, which serves as an important basis for continuing sustainable and efficient public reform management and ensuring debt safety and national financial security. Under the strategy, public debt would not exceed 60 percent, government debt 50 percent and foreign debt 45 percent of GDP, and the amount for debt repayment would not exceed 25 percent of the total budget revenue. The strategy targeted that GDP would expand at an average of seven percent per year with … [Read more...] about Keeping public debt below 60 percent of GDP by 2030 targeted

About 2.47 quadrillion VND was raised for the State budget in the primary G-bond market over the last 12 years. (Photo: VNA) Hanoi (VNA) – The Government bond market of Vietnam officially became operational at the Hanoi Stock Exchange (HNX) on September 24, 2009. Since then, about 2.47 quadrillion VND (108.5 billion USD) has been raised for the State budget from the primary market to support socio-economic development in the country. More than 206 trillion VND worth of G-bonds has been raised for the State budget annually, accounting for almost 10 percent of total investment in society in 2020 and 28.3 percent of that by the State sector last year. Bond issuance volume up, interest rates down The HNX said that in order to mobilise the above mentioned sum of money, it has organised more than 2,600 auctions, with 60 - 70 percent of the bonds offered successfully sold on average. Notably, interest rates in the G-bond market have declined considerably over the past 12 … [Read more...] about Over 108.5 billion USD raised from primary G-bond market in 12 years

Customers at Vietcombank (VCB) branch in the Central Highlands province of Kon Tum. The total operating income of 27 listed banks in the first quarter of 2022 increased by 8.2 per cent compared to the previous quarter.-VNA/VNS Photo In the past three months, banking shares witnessed sharp declines and were among the most negatively impacted on the stock market. Most banking stocks decreased by over 30 per cent and there was no single bank seeing positive growth. The decline was attributed to stricter control of credit flows, increasing bad debts mainly caused by real estate businesses, corporate bond inspection at banks and inflationary pressure which have affected investor sentiment. However, after a series of deep declines, many banking stocks are rebounding strongly in recent sessions. This brings hope to many investors in this industry group. In a newly released report, FiinGroup said that the total operating income of 27 listed banks in the first quarter of 2022 … [Read more...] about Banking shares plummet to attractive prices

The deal, which includes a combination of credit cards and personal loans, represents the largest single acquisition made by Collectius to date and signifies a growing need for debt restructuring solutions in the country as loan defaults become more common. The NPLs were a joint acquisition by Collectius and the International Finance Corporation (IFC), a member of the World Bank Group. Both parties partnered in 2020 to launch the $60 million Distressed Asset Recovery Platform Programme that focuses on the acquisition and resolution of distressed assets across emerging markets. This programme helped many customers across the region meet their financial obligations and regain creditworthiness. IFC is also a minority equity shareholder in Collectius. In addition, Collectius recently acquired NPL portfolios from a leading super app in Southeast Asia, as part of a regional deal that covers five countries including Vietnam. Through these NPLs acquisitions, Collectius now serves more … [Read more...] about Collectius acquires more than $800 million of non-performing loans in Vietnam

The Partnership for Global Infrastructure and Investment, unveiled with fanfare by U.S. President Joe Biden and G7 allies from Canada, Germany, Italy, Japan and the European Union, aims to fill a huge gap left as communist China uses its economic clout to stretch diplomatic tentacles into the furthest reaches of the world. Biden said the target was for the United States to bring $200 billion to the table, with the rest of the G7 another $400 billion by 2027. Funding the kinds of projects that China currently dominates -- everything from roads to harbours in far-flung corners of the world -- is not "aid or charity," Biden said. Highlighting the geostrategic thinking behind the plan, Biden said such projects "deliver returns for everyone, including the American people and the people of all our nations." Around the world, the role of China's democratic rivals is "a chance for us to share our positive vision for the future" and for other countries to "see for themselves the … [Read more...] about G7 touts $600 bn global infrastructure plan to rival China

At shareholders' meetings in recent years, the common discussion of commercial banks is that they often set credit growth targets much higher than the credit growth target of the whole banking system. However, how much is set depends on the credit limit granted by the State Bank of Vietnam. Usually at the beginning of the year, the State Bank of Vietnam grants a credit room to each commercial bank depending on their state as healthy banks. From the middle of the year onwards, the operators begin to adjust the credit room for commercial banks, based on developments in the economy, operations, and health of the bank. This is to say, that looking at the actual needs of the market, commercial banks can predict their credit growth, but they can only do so within the level allowed by the State Bank of Vietnam. Every year, around the middle of the second quarter onwards, commercial banks mostly step up and race to send applications to the State Bank of Vietnam to ask for more credit room. … [Read more...] about State Bank of Vietnam unwilling to dismantle credit room

At a food fair in Vientiane, Laos (Photo: Xinhua/VNA) Vientiane (VNA) – The Lao Government is considering imposing limits on a number of imported goods in an attempt to minimize or cut the use of foreign currency on non-essential items amid dwindling foreign currency reserves, Lao Prime Minister Phankham Viphavanh said. Responding to National Assembly deputies’ questions at the third session of the 9th legislature, the PM said vehicles, alcoholic beverages and other imported luxury items are among goods to be considered for the import curb. Laos is suffering from a shortage of foreign currency, so the government is struggling to purchase and import sufficient essential items, notably fuel. Meanwhile, the Vientiane Times reported that the Lao Government is considering engaging an international consulting firm to determine the value of state assets, particularly those pertaining to natural resources. According to the newspaper, the idea was put forward at the National … [Read more...] about Laos considers curbing imports to save foreign currency