Business

NA approves extension of pilot bad debt settlement resolution

The National Assembly (NA) has agreed to extend a pilot resolution on bad debt settlement until the end of 2023 instead of this year.
NA approves extension of pilot bad debt settlement resolution ảnh 1A bank teller counts cash at a transaction office in Hanoi. (Photo: cafef.vn)
Hanoi (VNS/VNA) - The National Assembly (NA) has agreed to extend a pilotresolution on bad debt settlement until the end of 2023 instead of this year.

The NA’sResolution 42/2017/QH14 on piloting bad debt settlement of credit institutions,which was issued in 2017 and was set to expire on August 15 this year, will beapplicable until December 31 next year.

Underthe new resolution, the NA assigned the Government to study regulations onhandling bad debt and collateral, and review to amend the Law on CreditInstitutions to submit them to the NA before its meeting in May 2023.

Duringthe extension of Resolution 42, the NA requires the Government to havesolutions to overcome existing difficulties and problems besides directingcompetent ministries and agencies to work to ensure effective implementation ofthe resolution.

Atthe NA’s meeting last month, Governor of the State Bank of Vietnam Nguyen ThiHong reported that after five years of implementing Resolution 42, the bad debtsettlement of credit institutions has achieved positive results.

Accordingly,the bad debt ratio of credit institutions was controlled at below 2 percent.Compared with August 15, 2017 when the resolution started, total bad debtsdeclined by 17.21 percent at the end of last year. From August 15, 2017 to November30, 2021, 373.3 trillion VND (16 billion USD) of bad debt was recoveredaccording to Resolution 42. On average, some 5.67 trillion VND of bad debtswere handled each month during the application of Resolution 42, against about 2.14trillion VND previously.

TheGovernment, therefore, proposed extending Resolution 42 while it studies tolegislate the policies specified in the resolution into a new law tocontinually enable the banking industry to settle bad debts of creditinstitutions. The issuance of a new law on bad debt handling will helpcredit institutions maintain and accelerate the handling of bad debts to avoidpotential risks for the economy, Hong said.

Expertshave also suggested streamlining Resolution 42 to better deal with baddebts.

Accordingto banking expert Can Van Luc, one of the major problems when dealing with baddebts currently is the handling of collateral. The right to seize securityassets of a credit institution is one of the key contents in Resolution 42, butit does not specify regulations when the borrowers do not cooperate.Therefore, Luc said it is necessary to have a law on bad debt settlement with astronger legal framework.

LawyerTruong Thanh Duc, Director of ANVI Law Firm, said Resolution 42 has a goodeffect in dealing with bad debts, however, the policy still needs to be furtherstreamlined to improve the handling of bad debts in the bankingindustry./.
VNA
#bad debt #National Assembly #credit institutions #State Bank of Vietnam #banking industry #updated Vietnam news #Vietnamplus #Vietnam News Agency
Follow VietnamPlus

Related News

NA deputies discuss curbing petrol prices, settling bad debts

NA deputies discuss curbing petrol prices, settling bad debts

Ensuring flexibility in curbing rising petrol prices and settling bad debts of credit institutions were scrutinised by National Assembly deputies on June 1 at a debate on the implementation of socio-economic development plans and the state budget in 2021 and in the first months of 2022 during the legislature's ongoing third session.

See more

The Quang Tri coastal road project, spanning nearly 55km, is among key projects with regional connectivity that play an important role in promoting socio-economic development in the central province of Quang Tri. The project is expected to be completed by the end of 2026.(Photo: VNA)

Public investment disbursement slow despite record capital scale

As of February 28, total disbursed capital reached 55.74 trillion VND, equivalent to 5.6% of the plan assigned by the Prime Minister. Of the figure, disbursement of the central budget was estimated at 10.18 trillion VND, or 2.9% of the plan, while that of local budgets totalled 45.56 trillion VND, reaching 7% of the target.

Delegates taste UK food (Photo: VNA)

Taste of UK week promotes British foods in Vietnam

The “Taste of the UK” food week, held for the first time in Ho Chi Minh City from February 26 to March 11, is an opportunity to promote British food products and strengthen their presence in Vietnam, while giving local consumers a chance to experience the diversity of UK cuisine.

A customer purchases E5RON92 bioethanol fuel at a PVOIL gas station on Thai Thinh street, Hanoi (Photo: VNA)

Retail fuel prices rise sharply in March 5 adjustment

According to the Ministry of Industry and Trade, the global fuel market during the latest price adjustment period from February 26 to March 4, 2026 was influenced by several major factors, including the escalating military conflict between the US – Israel coalition and Iran.

Workers at a textile factory in Hanoi (Photo: VNA)

Supporting industries seek fresh growth momentum

Against a backdrop of global uncertainty and supply chain restructuring, the Government has introduced a range of measures aimed at injecting new momentum into domestic manufacturing. New provisions covering workforce training, testing and certification, trade promotion and technology upgrades have been implemented.

Workers package fruits at the factory of Vina T&T Group (Photo: nhandan.vn)

Vietnamese exporters adapt to escalating Middle East conflict

The Ministry of Industry and Trade’s Export-Import Department forecasts upward pressure on global prices for consumer goods, fuel, and crude oil in the coming time. Such hikes could exert indirect but broad negative effects on Vietnam’s overall production and trade, with particular exposure in exports destined for the Middle East.

The MoIT will closely monitor global oil prices, output, inventories and trade flows to adjust imports and domestic supply accordingly. - Illustrative image (Photo: VNA)

Vietnam triggers fuel contingency plan over Middle East crisis

The Ministry of Industry and Trade will closely monitor global oil prices, output, inventories and trade flows to adjust imports and domestic supply accordingly. It will also intensify oversight of key traders’ compliance with their 2026 minimum reserve obligations.

Workers process tra fish for export. (Photo: VNA)

Agro-forestry-fishery exports up over 17% in first two months

Of the total export value in the January–February period, agricultural products accounted for 6.09 billion USD, up 17.1% year-on-year. Seafood exports reached 1.76 billion USD, marking a sharp increase of 23.3%, while forestry products brought in 2.82 billion USD, up 7.4%.

Many private businesses are investing in the service and real estate sectors in Da Nang. (Photo: VNA)

Da Nang augments efforts to attract high-quality investments

Da Nang has consistently implemented business support policies and a selective investment attraction strategy, prioritising high technology, smart city building and sustainable development, thereby strengthening investor confidence and enhancing the city’s competitiveness in the new development phase.

Export activities at the Cai Mep - Thi Vai port cluster (Photo: VNA)

Southern region opens wide to new wave of US investment

Since 2025, US enterprises have increasingly explored investment opportunities across provinces in the Southern Key Economic Region. Ho Chi Minh City has emerged as a leading destination, highlighted by multiple cooperation agreements concluded in late 2025.

Visitors explore Vietnamese furniture products at HawaExpo 2026. (Photo: VNA)

Ho Chi Minh City’s HawaExpo 2026 triples in scale

Held under the theme “Gateway to Vietnam Furniture Prowess” and featuring more than 2,500 booths, the four-day event is expected to serve as a gateway to exploring the genuine capabilities of Vietnam’s wood and furniture industry, as well as a strategic trading hub for international markets.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha answers reporters’ questions. (Photo: VNA)

SBV vows agile policy response amid global headwinds

In the coming period, the SBV will calibrate interest rate management in line with macroeconomic developments and inflation trends, while requiring credit institutions to publicly disclose lending rates to enhance transparency.