On 31st January 2013, Vietnam Centre for Economic and Policy Research (VEPR) has organized the Seminar for Economic Research and Policy No. 07 titled "The Determinants of Non-Performing Loans in Vietnamese Commercial Banks: An Empirical Analysis". The speaker of the Seminar was lecturer Do Quynh Anh, representing for the research team with researcher Nguyen Duc Hung.
Do Quynh Anh has received a bachelor’s degree in economics from National Economics University and and a master degree in international trade and finance from Leeds Metropolitan University, United Kingdom. MSc. Quynh Anh is currently a lecturer in National Economics University. Nguyen Duc Hung has also received a bachelor’s degree in economics from National Economics University and is working as a researcher at Vietnam Institute of American Studies, Vietnamese Academy of Social Sciences.
The participants of the Seminar included Dr. Nguyen Duc Thanh from VEPR, MSc. Pham Van Dai from Maritime Bank and other researchers, lecturers and students from different universities in Hanoi.
.JPG)
MSc. Do Quynh Anh was presenting the study
The study reviews theories about non-performing loans (NPLs) and regulations in managing NPLs both domestically and internationally, as well as examines the influence of macroeconomic and bank-specific factors on NPLs in Vietnamese banking system. By using a balanced panel data from the ten largest commercial banks in Vietnam from 2005 to 2011, the econometric results show that macroeconomic factors such as inflation and economic growth had instantaneous impacts on NPLs in those banks. Other bank-specific factors were also included in the model. Among them, the previous NPLs ratio and credit growth had the most significant impacts. Finally, the study also offers some policy implications to deal with the current situation of high NPLs in Vietnam.
Many questions and comments were raised during the presentation of MSc. Quynh Anh. The most controversial problems were how to set up the hypotheses, specify the models, select proxies and collect data from Vietnamese banks. The author clarified the ambiguity and discussed with the spectators in order to improve the study. Dr. Nguyen Duc Thanh and MSc. Pham Van Dai also suggest other new directions fot the research team to further develop the study in the future.