Business

VAMC plans to resolve 5.95 billion USD of bad debts by 2020

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.
VAMC plans to resolve 5.95 billion USD of bad debts by 2020 ảnh 1  The Vietnam Asset Management Company (VAMC) also targets to use cash to buy another 3.5 trillion VND of NPLs according to market price in 2018. (Photo: VAMC)

Hanoi (VNS/VNA) – The Vietnam Asset Management Company (VAMC)plans to resolve at least 140 trillion VND (5.95 billion USD) of non-performingloans (NPLs) from now until 2020, of which 34.5 trillion VND will be settledthis year.

Under the company’s latest business plan released late last week, the StateBank of Vietnam (SBV)’s subsidiary also set to buy a maximum of 32 trillion VNDof NPLs from credit institutions this year by using its specialbonds.  

According to the legal regulation, holders of special bonds may use themas collateral for re-financing from the SBV.

Besides the issue of special bonds to buy NPLs, VAMC also targets to use cashto buy another 3.5 trillion VND of NPLs according to market price in 2018.However, to have sufficient capital for the purchase of bad debts under marketvalue, the company has asked the Government to increase its charter capitalfrom the current 2 trillion VND to 5 trillion VND as approved by the PrimeMinister in Decision 1058/QD-TTg dated July 19, 2017.

In order to meet the plans, VAMC requested SBV submit to the Prime Minister todirect competent ministries and agencies to soon issue guidance on theimplementation of the National Assembly’s Resolution No. 42 on settling baddebts.

Specifically, the Ministry of Natural Resources and Environment should issueregulations on guiding procedures related the transfer of bad debts’collaterals, which are unfinished real estate projects.

Meanwhile, the Supreme People’s Court should guide the application of thesummary procedures in the dispute settlement of bad debts’ collaterals atcourt.

VAMC’s management said that the company will study and launch new services suchas guarantee, capital contribution, share purchase, investment and leasing ofcollaterals.

In 2017, VAMC purchased 565 bad debts worth a total of nearly 32.38 trillion VNDfrom 414 customers of 14 credit institutions.

Since its launch in 2013 to the end of last year, it purchased 26,221 bad debtsworth 307.93 trillion VND of 16,269 customers in 42 credit institutions at apurchase price of 277.75 trillion VND.

It last year alone recouped 30.64 trillion VND of bad debts, raising the totaluntil the end of last year to 81.66 trillion VND.-VNS/VNA
VNA
#The Vietnam Asset Management Company #VAMC #non-performing loans #VAMC plans to resolve 5.95 billion USD of bad debts by 2020 #bad debts #State Bank of Vietnam #Vietnam News Agency #vietnamplus
Follow VietnamPlus

Related News

Detailed guidance needed to tackle bad debt: experts

Detailed guidance needed to tackle bad debt: experts

Settling non-performing loans (NPLs) has been easier since the application of Nation Assembly’s Resolution 42 a year ago, but detailed guidance is still needed to make the use of the regulation smoother, industry insiders said.
Deputy PM urges SBV to speed up settlement of bad debts

Deputy PM urges SBV to speed up settlement of bad debts

The State Bank of Vietnam (SBV) needed to speed up the settlement of non-performing loans (NPLs) to bring down the bad debt ratio of the entire banking system, including both NPLs owned by credit institutions and the Vietnam Asset Management Company (VAMC), to below 3 percent by 2020.

See more

Consumer purchases E10 biofuel at a PVOIL petrol station on Thai Thinh street in Hanoi. (Photo: VNA)

Hanoi strengthens oversight of transition to E10 biofuel

To ensure compliance with the transition roadmap, the Hanoi Market Surveillance Sub-Department has requested petrol traders to proactively review and upgrade storage tanks, fuel pumps and other technical conditions necessary for E10 distribution, thereby preventing disruptions to fuel supply serving consumption and production demands across the capital.

A Phu Tho civil servant guides a local how to switch from presumptive tax mechanism to tax sef-declaration. (Photo: VNA)

📝OP-ED: Vietnam’s tax reform: Fair play, not revenue squeeze

At a time when social media disinformation grows more sophisticated, transparency and public disclosure are the most potent counter to distortions. Facts, data and real-world results deliver the strongest rebuttal to attempts that twist reality and erode trust in tax administration reform.

Experts are expected to analyse opportunities for boosting exports and investment cooperation between Vietnam and South American countries at the coming seminar. (Illustrative photo: VNA)

Seminar on trade promotion in South American market to take place in Hanoi

A seminar on opportunities and challenges in developing the South American market will be held in Hanoi on May 28. It aims to provide updates on the economic outlook, market trends and import demand in South America, particularly in Argentina and Chile, amid continued fluctuations in global supply chains.

A view of the second Asia Agri Food International 2026 in Ho Chi Minh City on May 19 (Photo: VNA)

India pushes stronger agri-food cooperation with Vietnam

Experts noted that Vietnam has established itself as one of Southeast Asia’s leading agricultural product exporters, while India remains a major global supplier of agricultural and food products. By combining India’s production capacity and technological strengths with Vietnam’s dynamic processing and export ecosystem, the two countries can build more resilient supply chains in the region.

A panel discussion at the Meet Australia 2026 programme on May 19 (Photo: VNA)

Meet Australia 2026 promotes sustainable partnership opportunities

Meet Australia 2026 is not only a trade and investment promotion event but also a forum connecting trust, vision and action between Vietnam and Australia, as well as between national-level cooperation orientations and development needs of localities and businesses from both countries.

A customer purchases E10 biofuel petrol at a PVOIL station on Thai Thinh street in Hanoi. (Photo: VNA)

Authorities ordered to closely monitor rollout of E10 biofuel from June 1

According to the agency, the move is aimed at ensuring the effective and synchronised implementation of the E10 transition roadmap under Circular No. 50/2025/TT-BCT, issued by the Ministry of Industry and Trade on November 7, 2025. The plan seeks to avoid delays or supply disruptions that could affect the domestic fuel market.

Vietnamese Trade Counsellor in India Bui Trung Thuong speaks at the forum. (Photo: VNA)

Vietnam, India promote digital economy cooperation towards 25 bln USD trade target

With the strengthened Comprehensive Strategic Partnership, the rapid growth of digital economies in both countries and complementary strengths in technology, manufacturing and markets, Vietnam and India are well positioned to build a deeply connected digital trade ecosystem and enhance their participation in global value chains.

“Vietnam Economic Day” in St. Petersburg attracts crowds (Photo: VNA)

Vietnam showcases economic potential, investment opportunities in St. Petersburg

Vietnamese Ambassador to Russia Dang Minh Khoi stressed that economic cooperation between Vietnam and Russia is entering a new phase with promising opportunities for growth. He praised this year’s programme for combining a business roundtable, a youth business forum and traditional cultural and culinary activities, creating both an academic platform for dialogue and an opportunity to deepen mutual understanding between the two countries' people.

Lien Minh Agricultural Cooperative in Thai Nguyen province, provides stable employment for hundreds of its members. (Photo: VNA)

Private economic sector poised for breakthrough growth

More than a year after the Politburo's Resolution No. 68-NQ/TW on private sector development came into effect, expectations now extend beyond increasing the number of enterprises. The goal is to build a stronger business community with greater resilience, larger ambitions and the capacity to compete in global supply chains.