“Vice Chairman and General Secretary of the Vietnam Banks Association Nguyễn Quốc Hùng said it was necessary to amend the Law on Credit Institutions promptly to remove the bottleneck in handling bad debts, as they have been rising significantly.
Hùng said despite efforts of banks in dealing with bad debts, the debts increased by about VNĐ34 trillion in the first two months of 2025, while only about VNĐ15 trillion of the debts were settled by banks through risk provisions.
According to Hùng, debt repayment awareness of borrowers was poor. Only 3-6 per cent out of total bad debts were paid by borrowers, while banks had to use up to 48 per cent of their reserve funds to handle the bad debts. The high provision rates have greatly affected the business results of banks and reduced bank credit pouring for businesses as bank cash flows were stuck and cannot circulate.” – Viet Nam News
Source: Complete Legal Framework Needed To Settle Bad Debts
Complete Legal Framework Needed To Settle Bad Debts
