Banks get a Boost – extra gains from collateral collections will speed up

Vietnam’s National Assembly is expected to pass a decision tomorrow, Thursday, allowing banks to liquidate collateral from defaulting clients without going through a lengthy legal process. In cases of insolvency, banks will gain control of pledged collateral more quickly, enabling them to recognize additional income from collateral sales sooner.

Previously, the process of realizing collateral was complex and could take several years. The decision is important for several banks and could begin to support earnings already from the end of 2025.

Other near-term expectations to support the Vietnamese market outlook:

• Vietnam’s GDP growth has accelerated, Q2 is likely to reach +7.6%.
• Key progress in Vietnam–U.S. tariff negotiations.
• Upcoming rate cuts by the Fed.

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