Vietnam’s debt market was still in its infancy and sound policies were required to bolster growth, said policymakers and financial experts during a conference in Hanoi on November 29.
The State-run Vietnam Asset Management Company (VAMC) is in the process of founding a debt trading floor for managing and updating information on debts, according to its latest report.
Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.
The Bank for Investment and Development of Vietnam (BIDV) has cleared all non-performing loans it had previously sold to the Vietnam Asset Management Company (VAMC), the bank’s Chairman Phan Duc Tu said.
It was a surprise as a number of domestic commercial banks have reported big profits after years of poor performance, but this showed the country’s business environment has improved.
The Southeast Asia Joint Stock Commercial Bank (SeABank) has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), thereby helping the bank proactively monitor and handle bad debts.
The Vietnam Asset Management Company (VAMC) is planning to develop a new strategy for buying and selling bad debts in Vietnam this year, in which it will play a central role to promote the development of the debt trading market.
The Vietnam Asset Management Company (VAMC) plans to handle some 50 trillion VND (2.14 billion USD) worth of bad debts in 2019, and issue special bonds to purchase 20 trillion VND (856 million USD) of non-performing loans.
The Vietnam Debt Asset Trading Corporation (VDATC), in collaboration with the Asian Development Bank, will organise the 4th International Public Asset Management Company Forum (IPAF) from November 14-15.
The Vietnam Asset Management Company (VAMC) plans to resolve at least 140 trillion VND (5.95 billion USD) of non-performing loans (NPLs) from now until 2020, of which 34.5 trillion VND will be settled this year.
The ratio of the non-performing loans (NPLs) at commercial banks fell from 3.61 percent at the end of 2013 to 2.18 percent at present, according to Chairman of the Vietnam Asset Management Company (VAMC) Nguyen Tien Dong.
Some Vietnamese banks have made meaningful progress in the resolution of legacy problem assets, a positive credit for the sector, Moody’s said on February 5.
The Vietnam Bank for Agriculture and Rural Development (Agribank) and the Vietnam Asset Management Company (VAMC) will work closely together to review bad debts and put forth proper measures to accelerate the settlement and recovery of bad debts.
The banking sector’s total bad debts stood at 2.51 percent as of the end of July 2017, falling from 2.55 percent at the end of 2015, according to a report by the State Bank of Vietnam (SBV) to the National Assembly.
Nonperforming loans (NPLs) must be revolved at the earliest, especially in the banking and financial sector, in order to strengthen Vietnam’s economy, ensure efficiency and boost effectiveness in capital allocation, a World Bank Group (WBG) official told a seminar on September 26.
The Vietnam Asset Management Company (VAMC) will need more capital to further benefit from the National Assembly’s recent resolution on the settlement of non-performing loans (NPLs), experts said.
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