Vietnamplus

The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally 50 trillion VND (2.15 billion USD) this year.

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.

Shares of four Vietnamese banks may rise 14-68 percent in 12 months, according to JP Morgan’s Asia Pacific Equity Research.

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 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.

The speedy repossession of collateral is a credit-positive step for Vietnamese banks, which continue to grapple with legacy asset-quality issues caused by rapid credit growth and loose underwriting standards of the past decade, Moody’s Investors Services said in a note on August 28.

Flawed legal regulations on collateral for debt collection have hampered bad debt settlement, participants said at a workshop in Hanoi on May 23.

Total non-performing loans (NPLs) of the entire credit institutions (CI) system until March 31, 2017 were 160 trillion VND (7 billion USD).

The Vietnam Asset Management Company will take drastic measures to recover around 33 trillion VND of non-performing loans this year, VAMC Chairman Nguyen Tien Dong said.

Settlement of bad debts has shown positive signs after some banks announced they would buy back all their non-performing loans they sold to the Vietnam Asset Management Company (VAMC).

Though the bad debt ratio of the banking system has been reported to drop to below 3 percent of its outstanding loans, how to deal with the amount of bad debt is still a troublesome job.

The Vietnam Asset Management Company (VAMC) has cut the applicable interest rates by 0.3 percent of the Vietnamese dong and the euro for non-performing loans (NPLs) purchased from credit institutions.