Reorganising distressed credit institutions is to be a major focus in Vietnam in 2023, but it could take 8-10 years to transform troubled lenders into financially sound ones.
Current conditions might be sufficient to soften the interest rate, yet a wise roadmap needs to be in place to avert potential threats for future development, banking leaders have discussed.
Despite a bright business outlook, non-performing loans are causing significant concerns to banks amid a challenging environment in both the domestic and global market, according to industry experts.
As Vietnam’s government has raised its inflation target to 4.5 per cent for 2023, policymakers are required to maintain a cautious stance on monetary policy.