Commercial banks' pre-tax profits in 2025 are forecast to grow by 14.9% year-on-year, while bad debt has peaked and is expected to decrease next year.

The Thai government is planning to address public and small and medium-sized enterprise (SME) debt issues by deferring interest payments for three years on non-performing loans (NPLs) incurred after October 2023.

The extension of a policy on allowing commercial banks to reschedule the debt repayment period and maintain the debt group is necessary, but strong solutions are needed to avoid bad debt increasing in the future, experts said.

The HCM City Real Estate Association (HoREA) recently sent a written petition to the Prime Minister proposing an extension of a resolution on piloting bad debt settlement until the end of 2024.

Though banks gained profits of trillions of Vietnamese dong in Q3 2022, credit quality has remained a concern of the banking industry, especially when Circular No. 14/2021/TT-NHNN on loan rescheduling for COVID-19 affected borrowers expired at the end of June this year.

The National Assembly (NA) has agreed to extend a pilot resolution on bad debt settlement until the end of 2023 instead of this year.

Ensuring flexibility in curbing rising petrol prices and settling bad debts of credit institutions were scrutinised by National Assembly deputies on June 1 at a debate on the implementation of socio-economic development plans and the state budget in 2021 and in the first months of 2022 during the legislature's ongoing third session.

The Government has asked for an extension to a pilot programme designed to handle bad debt from domestic financial institutions during a meeting of the National Assembly on May 24.

Nearly 60 percent of credit institutions forecast their business performance results to improve in Q2 after estimating those in Q1 to be not as good as expected, the latest survey by the State Bank of Vietnam (SBV) showed.

The Government has agreed to a proposal by the State Bank of Vietnam (SBV) to extend the pilot bad debt settlement of credit institutions based on Resolution 42/2017/QH14.

Credit growth has reached 12.97 percent so far and is likely to hit 14 percent this year, Standing Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said in a press conference on the SBV's governance of monetary policies and banking operation on December 28.

In the face of rising bad debt amid the ongoing COVID-19 pandemic, commercial banks have been forced to write up their loan loss provisions, according to industry sources.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) recorded a bad debt ratio of 0.6 percent last year, the lowest so far and in the sector, compared to 0.78 percent in 2019.

The Vietnam Joint Stock Commerical Bank for Industry and Trade (VietinBank) reported pre-tax profit of 16.45 trillion VND (712.4 million USD) and a bad debt ratio of under 1 percent for 2020.

The steering committee for the restructuring of credit organisations held a meeting in Hanoi on July 27 under the chair of Prime Minister Nguyen Xuan Phuc.

Some banks are speeding up the recovery of non-performing loans (NPLs) this year despite the impacts of the COVID-19 pandemic.

Some credit institutions (CIs) that have not yet completed their restructuring roadmap will have to speed up the process to meet the State Bank of Vietnam (SBV)’s deadline this year.

The Ho Chi Minh City Real Estate Association (HoREA) has asked for corporate bond regulations to be loosened to help businesses get through the COVID-19 pandemic.

Credit grew over 13 percent in 2019, slightly below the yearly targetof 14 percent, a senior official from the State Bank of Vietnam (SBV) told a recent press conference.

In addition to the increase in quantity, credit quality has also improved, with loans given to right people and overdue debt reaching only 0.4 percent, with almost no bad debt.