First achievements in the economic restructuring


"The restructuring of the banking system has deployed aggressively, complying with the roadmap and became the bright spot in the overall restructuring of the economy. Thank to measures to restructure credit institutions with flexible management of monetary policy, strengthen the management of the currency market that credit system has been secured and the risk of disruption, insecurity system has been pushed back.
As directed by the Governor of the State Bank, all of the contact made by Congress delegation, with people were the composition of the participating banks to directly answer any questions, problems, requests of voters. “Keeping the prices of Vietnam currency, stable gold market has created a stable economy and specially created psychologically reassuring to society”. 
After two proactive and aggressive years of implementation, synchronous solutions for the restructuring of credit institutions so far have been got some positive results. Firstly, we gradually restore order and discipline in the currency markets, gold and forex markets gradually stabilized and under control of the State Bank. Secondly, the risk of system is descending, system’s safety of credit institutions and affordability of credit institutions improved, structural shift is stable; funds and credit institutions less depend on market funding.
The credit institution has been renewed, system management, administration, control systems, internal audit systems were enhanced. Economic management apparatus was reviewed, the banking network was rearranged and business operations  were restructured. That all gradually oriented business strategies, improving competitiveness and enhancing information technology as well as modernization of banking technology. Among them it focused on credit restructuring by concentrating capital for the manufacturing sector, supporting and alleviating difficulties in manufacturing, trading and promoting economic development.
Especially the source of investment capital for agriculture and rural restructuring step towards improving capital ratio stable funding over the long term, reducing dependence on capital, raising interbank market; gradually moving wide business model towards reducing dependence on credit operations and increase revenues from non-credit activities.
Referring to the issue of bad debts, the State Bank and credit institutions have actively implemented uniformly, more drastic measures to control bad debts increase. As a result, bad debts have been dealt a step, businesses continue to receive loans with reasonable interest rates, helping to reduce operating costs for borrowers because they would not incur overdue interest and loans with lower interest rates.
Although the model of Asset Management Company (VAMC) has never in precedent but initially proves the positive effects of resolving bad debts of the system of credit institutions difficulties and support to customers, thereby confirming the validity of the selection tools in dealing with bad debts.

for the banking sector, the biggest success is that we reversed the risk of collapse of the ailing banks. The solutions to restructure the banks, restructure bad debt and deductions risk reserve fund, selling the debt to VAMC combined with appropriate monetary policy, all contributed significantly to the process of economic recovery. “The problem of bad debt, bad debt trading is a business sector can attract investors at home and abroad if there is an appropriate mechanism. The Government should develop mechanisms and policies for markets debt trading in accordance with international practices to attract significant resources from society”.
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All comments [ 10 ]

Huy Quốc 10/11/14 21:02

Credit institution restructuring has recorded the most significant progress.

Vân Nhàn 10/11/14 21:04

The first achievement is the establishment of a legal framework. The plan to restructure credit institutions during 2011-2015 was approved by the Prime Minister in March 2012 with Decision 254/QD-TTg, while the overall economic restructuring plan was not approved until February 2013.

Lê Tín 10/11/14 21:10

We promulgated the Law on Deposit Insurance, amended the Ordinance on Foreign Exchange Control and issued the Decree on Gold Trading Management. With these legal documents, the worst scenarios have been considered.

Quốc Kiên 10/11/14 21:13

The Law on Deposit Insurance affirmed that even when credit institutions go bankrupt, the depositors’ interest will be ensured by deposit insurance agencies.

Phạm Hiếu 10/11/14 21:15

Thanks to these measures, stability was re-established in the currency and gold markets, creating a favourable condition for the credit institution restructuring drive.

Huy Lâm 10/11/14 21:16

Risks were reduced and credit institutions’ safety and liquidity were improved.

Quốc Cường 10/11/14 21:17

So far, the most notable success of credit institution restructuring is preventing credit institutions from collapsing, ensuring the country’s monetary security.

Hùng Quân 10/11/14 21:18

In terms of legal documents, we have issued many decrees on enhancing SOE administration, streamlining management of State capital in SOEs and financial management in companies wholly owned by the State.

Hoàng Lân 10/11/14 21:20

From January 1, 2015, the ASEAN Community will be formed and from January 1, 2018, the WTO’s grace period for Vietnam will end, creating much pressure on the Vietnamese economy.

Quân Hoàng 10/11/14 21:21

For credit institutions, we must allow weak banks to go bankrupt and dissolve. Otherwise, bank owners will not be responsible for what they do.

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