A corner of Vietinbank in Ha Noi. The bank hopes to reach 11 per cent asset growth this year. — Photo giaothongvantai.com.vn

HA NOI (Biz Hub) — The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) is planning to sell bad debts worth VND1.5 trillion, or $71.42 million, to the Vietnam Asset Management Company (VAMC).

This was reported by the saigontimes.vn. The Vietinbank is the last State-controlled bank to sell its bad debts to VAMC, following the sale of bad debts by Agribank, Vietcombank and Vietnam Investment and Development Bank (VIDB).

A financial report showed that VietinBank's total asset value on March 31, 2014 was VND558.78 trillion, or US$26.6 billion, which was nearly VND17.6 trillion, or $838.09 million – equal to three per cent -- lower than that at the end of 2013.

The rate of bad debt at the end of the first quarter this year was 1.78 per cent, 0.78 per cent higher than the figure reported at the end of last year.

At a meeting held in April this year, the shareholders set a lower profit target this year compared with that of 2013. It expects to earn a before-tax profit of VND7.28 trillion, or $346.66 million, a 6.1 per cent reduction compared with the credit growth rate of 13 per cent and capital mobilisation growth of 12 per cent.

The shareholders also set a target of 11 per cent asset growth this year.

The bank has still committed to pay dividend of 10 per cent of value this year, but the form of payment, in cash or shares, has not been announced.

According to Chairman of VAMC Nguyen Quoc Hung, the company has bought more than VND11.4 trillion, or $542.85 million, of bad debts from credit institutions in the first half of the year, bringing the total to more than VND50.7 trillion, or $2.41 billion since last October.

He said the company has earned VND996 billion, or $47.42 million, from selling bad debts. In addition, it has also restructured VND9,071 billion, or $431.95 million, of bad debts received from the credit institutions' 112 clients. — VNS