The National Assembly has expressed concern about the economic impacts of real estate and securities asset bubbles as well as mounting bad debt.
The government expects a budget deficit of $86.7 billion, or 3.7% of the GDP, in the next five-year period.
Vietnam is set to cap public debt at 60 percent of GDP in 2021-25, down 5 percentage points from the previous five years.
As the pandemic continues to persist, stronger measures are needed to restructure debts and lower interest rates for customers.
The Military Commercial Joint Stock Bank (MB) posted a record low bad debt ratio of 0.76 per cent in the first half of the year. This has been also the lowest level in the banking industry.
A maximum debt rollover of 12 months is not enough for businesses since they expect to take years to recover from the impacts of Covid-19.
The carrier plans to use the loan to pay overdue debts and operational costs.