Courting standards
Article Abstract:
Vietnamese government officials have spent 18 months working on a draft for new banking laws to be put before the legislature in Sep 1997. The process has been complex, because the government wishes to operate industrial policy through targeted lending, whilst at the same time building a sound banking system with less bad lending and a higher confidence rating. Industry experts feel the final draft is satisfactory. State banks will implement government policy, but other banks will be able to operate with little outside interference in lending policy. It also introduces capital-adequacy ratios and risk provisions.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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Don't look now
Article Abstract:
Vietnam's bad debt problem could be worse than appears from official figures, especially those for joint stock banks. Officially only some 5% of deferred letters of credit (LCs) are overdue, but from $800 million to $1 billion will be due and it is difficult to assess the proportion that will be paid on time. The definition of overdue is also not clear from official figurs, and Vietnamese banks appear to be relaxed about paying the LCs. A drop in value of the Vietnamese dong has also increased the weight of foreign debt in dong terms.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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Lesson one
Article Abstract:
The Vietnamese banking industry faces a difficult transition to a market economy and there is a lack of relevant skills. The International Bank for Reconstruction and Development and the Swedish International Development Co-operation Agency are jointly funding a bank training project to help provide the skills needed such as understanding cash flows. The four state banks appear healthy but lack loan-loss provision. The 52 private banks look set to undergo a process of consolidation, according to ING Barings.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1997
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