Bad debt handling to be audited

Economy, Vietnam, Vietnam Finance News
Illustrative image (Photo: VNA)

Hanoi (VNS/VNA) – The handling of bad debt among credit institutions
would be audited this year in order to formulate recommendations for
effectively implementing a National Assembly resolution, according to the State
Audit Office of Vietnam (SAV).

Under the SAV’s plan, the process would be carried out at the State Bank of Vietnam,
the Vietnam Bank for Industry and Trade (Vietinbank), the Bank for Investment
and Development of Vietnam (BIDV), the Vietnam Asset Management Corporation and
18 other credit institutions. They include ABBank, ACB, BacABank, CBBank,
Eximbank, GPBank, HDBank, NamABank, OCB, Sacombank, SeABank, SHB, Techcombank,
VietCapitalBank, VIB, VietABank, VietBank and VPBank.

The auditing would focus on evaluating the results of resolving bad debts and
identifying difficulties as well as violations to recommend measures for
improvements, the SAV said.

State Bank of Vietnam’s statistics showed that from August 15, 2017 to June 30,
2016, credit institutions handled a total of 138.29 trillion VND (45.8 billion
USD) in bad debt identified under Resolution 42/2017/QH14.

Bad debts at Agribank, BIDV, Vietinbank, ACB, Techcombank and Sacombank
accouted for 52.78 percent of the system’s total bad debts. These six credit
institutions handled a total sum of 77.6 trillion VND in the period.

A report by the central bank also revealed that as of the end of December, a
total of 183 trillion was handled, more than 32 percent of the bad debt
identified under the Resolution.

According to the SAV, the implementation of the Resolution still faced a number
of difficulties, such as handling mortgaged assets, tax payments from asset
transfers, and refunds of mortgaged assets used as evidence in criminal cases.
The classification of bad debts also had problems.

Resolution 42/2017/QH14 was passed on June 21, 2017 at the third meeting of the
14th National Assembly. It came into force on August 15, 2017 and will be in
place for five years. – VNS/VNA

QBCA

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