Vietnam - Construction, steel firms BIDV’s biggest debtors

Construction and steel sectors have the most overdue loans in the Bank for Investment and Development of Vietnam (BIDV), the lender said in a seminar last weekend.

The bank reported total outstanding loans for corporate clients in key sectors had reached nearly 271.73 trillion dong by end-December last year, up 11.7% against 2010. Of this number, overdue loans were mostly taken out by customers in construction and steel industries.

Civil construction companies had nearly 1.1 trillion dong in overdue loans in comparison to the 34.56 trillion dong lent to this sector while the figures for steel traders and producers were 1.04 trillion dong against the lent amount of 8 trillion dong, and 1 trillion dong against 6.9 trillion dong respectively.

BIDV saw a rise in total outstanding loans last year. For instance, the outstanding loans for the construction sector went up to 4.9 trillion dong and in heavy industries up nearly 4.1 trillion dong. Seafood processing registered a 1.84 trillion dong increase in outstanding loans, while wood processing had driven up its outstanding loans of more than 800 billion dong.

Under a suggestion by the central bank, BIDV plans to set repayment terms, place new credit ratings, offer corporate debtors lower or preferential interest rates or even conduct merger and acquisition activities.

Saigon Times

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