Vietnam Central Bank Unveils Five Sectors with Highest Bad Debts

The State Bank of Vietnam (SBV) has recently revealed five industries where nearly VND96 trillion or 80.49% of total non-performing loans of the economy pinned down, the local newswire reported.

In details, processing and manufacturing sector made up 4.33% of total lending and represented 22.5% of total bad debts. The corresponding figures were 7.83% and 19.25% for real estate and services; 4.16% and 18.52% for automobiles sales and repairing; 11.61% and 11% for transportation and logistics; 4.81% and 9.5% for construction.

The central bank has been developing the scheme to set up a debt trading company to tackle bad debts on a large scale with focus on property-backed debts, the SBV Governor said.

By the end of June this year, bad debts climbed to as high as 8.8% of total credits. Non-performing loans of state-run banks accounted for 3.76% of their total lending and represented 44.26% of total loans of the economy.

The corresponding figures were 4.73% and 35.3% for commercial joint stock banks; 12.27% and 7.2% for finance companies; 44.72% and 6.7% for financial leasing firms; 1.4% and 0.45% for people’s credit funds.

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