The bad debts of Vietnam’s four big state-owned commercial banks were estimated at VND46.6 trillion (USD2.24 billion) as of December 31, 2012.
Banks' bad debts have tended to sharply rise
The Vietnam Bank for Agriculture and Rural Development (Agribank) had the highest bad debts of VND27.8 trillion (USD1.33 billion), accounting for 5.8% of its outstanding loans.
By December 31, 2012, Agribank’s total outstanding loans reached VND480.45 trillion (USD23.1 billion), up VND36.57 trillion compared late 2011. The bank fulfilled its set outstanding loan growth rate of 8-10% in 2012.
The Bank for Investment and Development of Vietnam (BIDV)’s bad debts stood at VND8.98 trillion (USD431.7 million), accounting for 2.77% of the bank’s outstanding loans. The bank’s outstanding loans reached VND324.21 trillion (USD15.58 billion) by the time, up 16.2% on-year.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietcomBank) reported its bad debts at VND5.39 trillion (USD259.2 million), equal to 2.25% of the bank’s outstanding loans.
Meanwhile, the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) said its bad debts reached VD4.46 trillion by the end of 2012, or 1.35% of its outstanding loans.
According to the State Bank of Vietnam’s Hanoi Branch, by December 31, 2012, total deposits of credit institutions in the city were estimated at VND896.88 trillion (USD43.2 billion), up 9.13% against the end of 2011. Their total outstanding loans reached VND652.92 trillion (USD31.4 billion), up 11.39% on-year.
However, bad debts have tended to sharply rise and many firms failed to meet bank lending requirements. By late 2012, the bad debt rate of credit organisations in Hanoi stood at 5.04%, up 1.63% on-year.