Prime Minister: 'Bad bank debt will return to normal level next year'

For the third time this year in a direct dialogue with the business community, the head of the Government affirmed that reducing the bad debt ratio to 3% next year is completely feasible.

Speaking at the 2014 Annual Business Forum (VBF) this morning (December 2), Prime Minister Nguyen Tan Dung said the economy had gone through a challenging year, especially the event of China placing an oil rig in Vietnam's sovereign waters. However, with efforts and support from foreign investors, the executive agency has stabilized the macro environment, controlled inflation, and the growth in 2014 is estimated to reach over 5.9%, higher than the set target.

Prime Minister Nguyen Tan Dung affirmed that reducing bad debt in banks to 3% is feasible. Photo: PV

“We also seriously acknowledge that the results achieved have not been commensurate with our potential, meeting our requirements as well as your wishes,” the Prime Minister shared.

Entering 2015, the head of the Government pledged to implement more drastic and effective solutions to improve the investment environment. In particular, inflation will be controlled at 5% to facilitate economic development, budget deficit at 5% of GDP, and economic growth at 6.2%.

"Public debt will be guaranteed not to exceed the allowable ceiling and will be paid on time and in full as planned," the Prime Minister emphasized. In addition, Vietnam will actively reform and strongly develop capital, currency, labor, real estate markets... to facilitate business development, improve labor productivity and competitiveness, and proactively contribute to international economic integration and participation in new-generation free trade agreements.

Restructuring public investment, state-owned enterprises, and the banking and financial system was also mentioned by the Government representative as a task that needs to be a breakthrough in the coming year. "Rapidly reducing the bad debt ratio to below 3% in 2015 is completely feasible, meaning that the system of Vietnamese credit institutions will return to normal levels, ensuring safety," he said.

Deputy Governor of the State Bank Nguyen Thi Hong also pledged to strive to reduce bad debt to 3% of total outstanding debt in the coming time. The issuance of Circular 36 on safety standards also aims to increase the stability of the system, reduce cross-ownership and help investors have new opportunities in the banking sector.

This VBF is the third time the business community has had a direct dialogue with the Prime Minister this year.

In addition, a key task of the Government in the coming year is to prevent and combat corruption. “Improving the market economy institution, implementing transparency in asset management, budget management, minerals, and enterprises will contribute more effectively to preventing and combating corruption,” the head of the Government affirmed.

Along with that, he pledged to the majority of foreign investors present in the hall to listen to opinions on solutions to prevent corruption, focus on reforming administrative procedures, and detect and strictly handle violations. "The Vietnamese government is very determined to prevent corruption, the problem is finding effective solutions," he said.

According to VnExpress