HCMC – The State Bank of Vietnam (SBV) is preparing to transfer the ownership of two underperforming banks, according to SBV Governor Nguyen Thi Hong.
“Financial assessments of the banks have been completed, and the two banks are ready for transfer,” she said during a meeting on October 7. “The SBV is also working to finalize the handover process for two other banks under special control.”
The four banks under special supervision are DongA Bank, CBBank, OceanBank, and GPBank. The SBV acquired CBBank, OceanBank and GPBank at no cost.
The SBV is also evaluating restructuring plans for the struggling Saigon Joint Stock Commercial Bank (SCB), reviewing its financial status to develop a restructuring proposal.
Hong highlighted that 98% of businesses in Vietnam are small and medium-sized enterprises (SMEs). The SBV is exploring ways to enhance credit guarantees for SMEs to improve their access to capital.
The central bank is extending debt restructuring policies and expanding support programs for the fisheries and wood processing sectors. The soft loan package for these sectors has been doubled to VND60 trillion.
According to the Ministry of Agriculture and Rural Development, Vietnam’s forestry sector faces significant setbacks after typhoon Yagi destroyed nearly 170,000 hectares of production forests, making the wooden product export goal of US$17.5 billion this year unattainable.
In addition, typhoon Yagi and ensuing flooding have inflicted an estimated VND4 trillion in damage on Vietnam’s farm produce sector, impacting 312,000 hectares of crops. This includes 200,000 hectares of rice, 51,000 hectares of vegetables—of which 36,000 hectares were corn—and 61,000 hectares of fruit and perennial crops.
Currently, 30 out of 45 banks have joined a new credit package totaling VND405 trillion, offering interest rate reductions of 0.5 to 2 percentage points to support businesses and individuals impacted by typhoon Yagi.
