Sacombank has solved more than VND19 trillion bad debts Hai Ly Following is an interview with Duong Cong Minh, Chairman of Sacombank, over how to deal with bad debts. Regarding Tram Be’s involvement in the Vietnam Construction Bank case, he says: - Relevant authorities confirmed that Sacombank did not incur losses from the lending activity as the loans were secured. Sacombank fully recovered the principal and interest. We already provided the information to stakeholders in the most transparent way, so customers can trust us. In the second half of 2017, Sacombank’s board solved a significant workload, most importantly the consolidation of sizeable bad debts and asset backlog valued at more than VND19 trillion. The Saigon Times: Sacombank’s leadership committed to handling VND15-20 trillion in bad debts by the end of 2017. How’s it going so far? - We wasted no time to tackle the bank’s problems by implementing a range of measures. We worked against the … [Read more...] about Sacombank has solved more than VND19 trillion bad debts
What debt management
Associate Professor Trần Hoàng Ngân, a member of the National Assembly Economics Commission, tells the Giáo dục Việt Nam (Việt Nam Education) e-newspaper that he is confident the Government will implement in full the Politburo Resolution on managing public assets and public investment. Can you explain the significance of the Politburo's Resolution on the need to restructure the State Budget, including improved management of public debt? The Resolution is timely, responding to the people's aspirations and the urgent need to restructure the State Budget. How to use public assets and public investments in an efficient way has been a burning issue in the country for many years now. At a full house meeting last October, National Assembly deputies spent a lot of time discussing the issues. Resolution No.07 is a reflection of the Party's resolve to bring public debt under control What will ministries and other agencies do to implement the Resolution? The document listed many things that … [Read more...] about Public debt must be reduced
VietNamNet Bridge – The State Audit Office of Viet Nam (SAOV) has announced the official figure of the 2014 public debt at more than VND2.28 quadrillion (US$102.7 billion), yet hinting that it might have reached higher than that. Viet Nam’s public debt as of December 31, 2014 was equal to 58.02 per cent of the national gross domestic product (GDP) the same year, SAOV told the press this morning. The public debt quickly increased by 17.1 per cent or VND333.3 trillion compared to 2013, according to the SAOV audit report. Ye the audit authorities also said that the Ministry of Finance which was in charge of tracking the public debt, failed to provide sufficient documents and evidence for it to confirm the colossal $102.7billion debt as the final number or not. “Though the audited public debt index was generally in line with the Law on Public Debt Management, its content could very well be repeated or yet to fully record all the Government’s debts,” said the … [Read more...] about Vietnam’s 2014 public debt reached $102 billion: State audit
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?
National Assembly Committee on Finance and Budget member Nguyen Huu Quang discussed with the Tuoi Tre (Youth) newspaper the impacts of the Government's suspension of infrastructure construction. What progress has been made in carrying out the Government's order to cut public spending? The majority of projects using funds from the State budget are in infrastructure development. So these projects do not generate revenue to help service loans, and State funds have to be used to repay the debt. This shifts funds away from other priorities, such as social security, wages, healthcare and education. Adding to the problem is the ineffectiveness of many projects. Some are a huge waste of public money. During the process of economic development, we have to use official development assistance (ODA) to fund many infrastructure projects. Though the interest paid on ODA is low and grace periods are long, loans still have to be serviced. Lessons learned from the public debt crisis in Portugal, … [Read more...] about Projects halted to avoid debt