Topic: credit institution

In its 2023 plan, State Audit of Vietnam (SAV) will concentrate on assessing financial market restructuring, focusing on commercial banks and credit institutions. In the field of construction investment, SAV is expected to conduct 26 audits of investment projects, including key traffic projects such as the East North-South Expressway, Long Thanh International Airport, and coastal roads, among others.

The Governor of the State Bank of Vietnam (SBV) has issued an action plan for the banking industry to implement the “Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period” project. The project clearly states the action plan for the banking industry on matters such as handling bad debts, improving credit quality, and boosting the financial capacity and operational efficiency of the Vietnam Asset Management Company (VAMC).

The NPL coverage ratio of the whole banking industry has increased sharply in the past 6 years, from 66 per cent at the end of 2016 to 150 per cent at present. However, in the context of bad debts starting to inflate, experts said that if some specific policies are not maintained, it will greatly affect the bad debt management process of credit institutions and the process of restructuring credit institutions.