The National Financial Supervisory Commission (NFSC) has just had a report about the economic and financial situation in May 2018.
As of the end of May 2018, the capital mobilised from economic organisations and individuals increased 6.2 percent from the end of 2017 (compared to 4.3 percent in the same period of 2017), of which, the mobilisation of dong increased 7.4 percent, the mobilisation of foreign currency decreased 3.1 percent. The mobilisation of dong reckoned for 91.3 percent in the mobilisation structure by type of money of credit organisations (90.3 percent at the end of 2017).
Meanwhile, as of the end of May, credit rose about 5.8 percent from the end of 2017 (up 6.9 percent in the same period of 2017). Credit in dong was estimated to rise 5.6 percent, making up 91.9 percent of the total credit; credit in foreign currency swelled eight percent but only made up 8.1 percent of the total credit.
The proportion of medium and long-term credit decreased slightly. In the first five months of 2018, medium and long term credit swelled about 5.4 percent, while short-term credit improved about 6.5 percent. The proportion of medium and long-term credit accounted for 52.7 percent of the total, not fluctuating from the end of 2017.
The lending structure for some sectors had slight change. The lending proportion for households decreased to 16.6 percent (17 percent at the end of 2017). The proportion of lending to construction and real estate sectors slightly improved to 16.3 percent (compared to 16 percent at the end of 2017).
At the end of May 2018, the non-performing loan (NPL) ratio as reported was about 2.3 percent (compared to 2.5 percent at the end of 2017). In the first four months of 2018, the credit organisation system focused on strengthening bad debt settlement, mainly by using risk provision.
The system of credit organisation settled about 20 trillion dong bad debt, of which, settlement by risk provision accounted for 62.9 percent, customers’ repayment reckoned for 28.8 percent; the sale to the Vietnam Asset Management Company (VAMC) was 4.3 percent; the sale of collaterals to recover debt only reckoned for 1.9 percent; while the remaining bad debt was handled by other methods.
