The rising number of exhausted businesses will hinder the economy from recovering its growth next year, said the National Financial Supervisory Committee. In the first four months of 2013, about 16,600 firms were disbanded or became inactive, up 16.9% year-on-year, the committee said in a report. Restrictions on credit access and unpleasant production and business situation made a lot of enterprises... 

HANOI – The bad debt ratio of the banking system has dropped to 6%, versus 8.6% a few months ago, heard a regular press briefing of the Government on Thursday. Vu Duc Dam, minister-chairman of the Government Office, said the Government was concerned about the slow credit growth in the first two months. However, given the aims for both economic growth and inflation restraint this year, credit will... 

Foreign financial experts have cast doubt on a quick fix for bad debt in Vietnam, saying the country lacks a clear mechanism for debt settlement. Darry Dong, a global financial market expert at International Finance Corporation (IFC), said Vietnam lacked a mechanism for foreign investors to get involved in settlements of bad debt. Few foreign investors pay attention to bad debt settlements here due... 

Bad debts at Vietnam Development Bank (VDB) by the end of 2010 had reached over VND38.1 trillion, accounting for 12.57% of its total outstanding loans, according to the Government Inspectorate. The Government Inspectorate has focused on detecting the violations of the State-run bank in capital mobilization, debt classification, lending for investment and export, risk management and guarantee for loans... 

The State Bank of Vietnam (SBV) at a review conference on Wednesday said that strong measures will be continued to tackle bad debts in 2013 while deposit rate cap may be removed given the improved liquidity in banks. According to a report released after the conference, bad debt grew 2% monthly in the final half of 2012 compared to a monthly 8% in the first half. The success was due to credit institutions... 

HSBC Global Research in a just-released report says Vietnam’s effort to eliminate bad debts in 2013 is not enough as the fundamental issue is to improve the efficiency of the economy to lure foreign capital for long-term development. HSBC expects a fiscal stimulus to spur growth is unlikely in 2013 as tax revenue has been decreased and state expenditure must be cut. Tax revenue collected dipped to... 

The project for tackling bad debt in the banking system will be submitted to the highest authorities today while first missions to deploy the program are expected to begin from early next year. Speaking at a seminar updating the economic situation and banking networking restructuring in HCMC on Wednesday, Vo Tri Thanh, vice president of the Central Institute for Economic Management (CIEM), said that... 

Twenty six credit institutions have been being inspected by the State Bank of Vietnam (SBV) in the year to date and the inspection results will be publicized, SBV governor Nguyen Van Binh said on Tuesday. Speaking at the discussion session of the National Assembly (NA) on Tuesday, Binh said SBV has launched full inspection and invited foreign independent auditors to conduct financial audits of each... 

Experts attending the workshop “Vietnam Economy 2012: turning the situation around” in Hanoi on Monday suggested “less drastic” measures to recover the economy, saying the frail economy cannot bear a shock therapy. “With such a poor health, the patient cannot bear cutters of a major surgery,” Tran Du Lich, deputy of the National Assembly, described the current situation of the economy. Le... 

Bad debts are a real concern, according to financial and banking experts who attended a seminar held by the National Institute for Finance on Thursday to seek solutions for this problem. “The Government should have a decree for tackling bad debts in the banking system,” said Truong Dinh Tuyen, former minister of trade. Nguyen Thi Mui, director of Vietinbank’s human resource training and development...