Borrowings

The State Bank of Vietnam (SBV) reported that as of the end of May, credit had grown by 1.96 percent compared with the end of 2019, lower than the 5.74 percent of the same period last year. In early June, the ‘big four’ – VietinBank, Agribank, Vietcombank and BIDV – all cut deposit interest rates. Vietcombank has lowered the interest rate by 0.25 percent per annum for 3-month-term deposit to 4.25 percent per annum, and lowered by 0.1 percent for 1- and 2-month term deposits to 4 percent. Vietcombank has lowered the interest rate by 0.25 percent per annum for 3-month-term deposit to 4.25 percent per annum, and lowered by 0.1 percent for 1- and 2-month term deposits to 4 percent. Linh Ha … [Read more...] about Banks say money plentiful, but many businesses not borrowing

A family in Bac Giang Province is calling for financial support to save the mother from cancer and the new-born daughter. Nguyen Thi Thanh and her newborn daughter Nguyen Thi Thanh's health has deteriorated to the point that it is exhausting to carry her new-born baby around. "My husband is a porter. He's still working every day for more money this Tet. My daughter is crying because we have just run out of formula milk," she said. Thanh said she and four siblings live with her father after her parents separated when she was only seven months old. Her father died when she was 22 years old. While working at a factory, she met and married her husband. "I was pregnant with the second child in April 2020 when I felt really tired. I just thought that was because of the pregnancy who would have thought that fate could be so cruel," she said. Thanh was diagnosed with throat cancer. She went from hospital to hospital but she refused treatments because she wanted to give birth to a … [Read more...] about Mother struggling against cancer calls for help to raise small children

Bad debts of 20 local banks at the end of 2020 were VND83.4 trillion (US$3.58 billion). — Photo cafef.vn The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements. Fifteen of the banks reported a decrease in bad debt ratio last year, with some successfully controlling the ratio at below 1 per cent. As of December 31, 2020, the bad debt ratio of Vietnam Technological and Commercial Joint Stock Bank (Techcombank) was 0.5 per cent, lower than the 1.3 per cent recorded as of December 31, 2019. The bank currently has the lowest bad debt ratio in the sector. For Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), the bad debts at the end of 2020 were VND5.22 trillion, down by more than 50 per cent. The bad debt ratio of the bank sharply dropped from 1.01 per cent at the end of the third quarter of 2020 to 0.62 per cent at the … [Read more...] about Bad debts of 20 banks up 4.5% in 2020

The SBV managed monetary growth in 2020 in accordance with the absorption level of the economy and with a focus on trade and production activities, consumption and priority sectors under the government’s guidelines. Its policy and decisions thus made a significant contribution to the country’s post-pandemic economic recovery. In 2020, the SBV adjusted annual interest rates three times, for a total reduction of 1.5-2 percent. The lending rate as of the end of November was brought down by one percent per annum on average compared to the end of 2019. Credit institutions restructured repayment terms for about 270,000 customers affected by the pandemic, with the value of outstanding loans moving close to VND355 trillion. Interest rate exemptions and reductions were applied for nearly 590,000 customers, with outstanding loans exceeding VND1,000 trillion. Nguyen Tuan Anh, director of the SBV’s Credit Department, said the government’s overall solutions and the banking … [Read more...] about Credit grew 11 percent in 2020, mostly for priority sectors

The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims. A businesswoman in the field of aesthetics said she borrowed VND25 billion in total from a group of lenders, including a loan with an interest rate of 1.5 percent per day. She later paid VND17.7 billion via bank account and paid other amounts in cash. But as the business faced problems, the lenders came to her house and forced her to write a debit note saying that she owed VND33 billion to them. They took her household registration book and identity card, while threatening that if she could not pay, her family ‘won’t live in peace’. They also filmed and took pictures of the meetings between them, tarnishing her reputation. Usurers vow to collect debts at any cost and are ready to use any cruel method. The noteworthy aspect is that the victim not only borrowed money from this group, but also from other groups at interest rates that … [Read more...] about The poor, as well as businesses, fall into ‘black credit’ trap