Banks in Vietnam

Are any of Vietnam's beaten down banks a buy?

Have a look at this report and see what you think:

banks in VN20081208.pdf

Not the best written piece of research, but some good data here that is worth a look if you follow the banks.

Even a little on our favorite topic NPL's:

Non performing loans

The true level of non-performing loan (NPLs) in the banking sector is difficult to judge due to a lack of transparency and statistical data. Although the banking system as a whole has relatively low NPLs at 2.3

However, World Bank access that the real NPL of the banking system is much higher than that level, equal to 15%-20% of the asset and even higher if suing International Accounting Standards.

In 2005, SBV issued the Decision No 493/2005/QD-NHNN, required banks to implement the credit classification. Accordingly, the loan-loss and NPLs would be calculated closer to International Financial Reporting Standard (IFRS). Following this clasification, the NPLs ratio in SOCB is 7.7% on average.

As for the commercial banks, NPL ratio was 1% in 2007, lower than 3% of 2006. This decrease was resulted by loan growth. Nevertheless, this ratio is not really accurate because many JSBs owe a weak management information system, which can report the true figure in line with reality.
Given the latest round of rapid credit expansion and the bad economic situation nowadays, many companies will fail to pay debt. Then the NPL is expected to increase. Till 9/2008, the total NPLs figure has reached to VND36,000 billion, of which is equivalent to 2.92% of the total outstanding loan.