The Government Office issued Official Letter 1892/VPCP-KTTH conveying the opinions of Politburo member and Prime Minister Pham Minh Chinh on information, press and public opinion related to the direction and administration.
Report No. 119/2025/TTDT dated February 15, 2025 of the Government Electronic Information Portal on information, journalism and public opinion related to direction and operation, including the following contents:
Group 5 debt of many banks increased according to Lao Dong Newspaper on February 13, 2025 and the Paradox of income earners having to pay taxes but being able to buy social housing according to VnExpress Newspaper on February 13, 2025 (on page 2, Report No. 119/2025/TTDT dated February 15, 2025 of the Government Electronic Information Portal sent to Government members).
Regarding this, Prime Minister Pham Minh Chinh directed the Governor of the State Bank of Vietnam, according to his assigned functions and tasks, to study press information according to the summary of the Government Electronic Information Portal on page 2, Report No. 119/2025/TTDT dated February 15, 2025 on the increase in group 5 debts of many banks to review and implement solutions to handle bad debts, control and limit bad debts, improve credit quality according to legal regulations, and ensure the safety of the credit institution system.
Prime Minister Pham Minh Chinh requested the Minister of Finance and the Minister of Construction, according to their assigned functions and tasks, to study press information according to the summary of the Government Electronic Information Portal on page 2, Report No. 119/2025/TTDT on people with taxable income but eligible to buy social housing to consider handling and synthesizing in the process of amending and adjusting policies on social housing and personal income tax according to regulations.
Previously, Lao Dong Newspaper reported: According to the fourth quarter 2024 financial reports of 27 banks that have published data, the total bad debt balance ( Debt in groups of 3-5) has increased by 17% compared to the beginning of the year, equivalent to VND 32,621 billion, bringing the total bad debt balance of the whole industry to VND 227,103 billion. Although this figure is 26,376 billion VND lower than the peak in the third quarter of 2024, the growth rate compared to the beginning of the year is still at a worrying level.
Notably, the most serious bad debt group - group 5 debt (possible to lose capital) - has increased by 39.3% compared to the beginning of the year, reaching VND 118,915 billion. Some banks have increased the rate of group 5 debt to more than 100%, reflecting the increasing pressure to handle bad debts.
Compared to the beginning of the year, many banks recorded double-digit bad debt increases, some banks even increased by more than 40-50%. Which bank has the highest bad debt in 2024?
According to data from financial statements, ACB, HDBank, VietinBank, Techcombank are the names at the top of the list.
Below are the bad debt growth rates of some banks in 2024:
ACB: Bad debt increased by 47%, from VND 5,887 billion to VND 8,650 billion. HDBank: Bad debt increased by 39%, from VND 6,160 billion to VND 8,556 billion. VietinBank: Bad debt increased by 29%, from VND 16,608 billion to VND 21,473 billion. Techcombank: Bad debt increased by 18%, from VND 5,999 billion to VND 7,101 billion.
Sacombank: Bad debt increased by 18%, from VND 10,984 billion to VND 12,957 billion; MB: Bad debt increased by 28%, from VND 9,805 billion to VND 12,585 billion; LPBank: Bad debt increased by 41%, from VND 3,689 billion to VND 5,199 billion; On the contrary, NCB and TPBank are the two banks with bad debt decreased compared to the beginning of the year, decreasing by 16% and 9%, respectively.
