Source: SaigonTimes (Vietnamese)
Excessive credit growth leads to macro-economic instability, creating asset bubbles, inflation, trade deficit and a weaker local currency. Every major financial crisis in history occurred after a period of excessive lending and borrowing. The article examines excessive lending in Vietnam, the risk and consequences of state-owned enterprises borrowing money and participating in banking sector. It concludes with what the government needs to prioritize in order to stabilize the financial sector.
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