4:34:26 PM | 31/10/2008
Bad debts of the local banks and credit institutions in Vietnam are forecast to reach VND30 trillion (US$1.818 billion) by the end of the year, a senior government economist said on October 29.
Between Jan and Oct, bad debts were VND22 trillion (US$1.333 billion), Le Xuan Nghia, head of the State Bank of Vietnam's Banking Development Bank told a seminar on the global financial crisis and reactions of banks, financial institutions and businesses in Vietnam held in Ho Chi Minh City Oct 28.
There are many factors of bad debts, but mainly attributed to non-performing loans for realty projects.
The bad debts can be dealt with provided related sectors and ministries cooperate, Nghia said.
Vietnam's realty market ballooned in late 2007 and early 2008 and a great amount of cash had been poured into, Vietnamnet said. Currently, the market has lost between 30 per cent and 40 per cent.
Statistics SBV released in July this year showed that based on criteria of due loans payments by local businesses, 23 per cent of surveyed firms said they had good performance, 73.2 per cent of them said they were running their business normally and 3.8 per cent of them said they faced difficulties. (ATPvietnam, Vietnamnet)
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