Credit institutions have been forced to sell their non-performing loans (NPLs) to national debt dealer Viet Nam Asset Management Company (VAMC) to meet regulated deadlines.

 VietNamNet Bridge – Industry insiders are doubtful whether the Viet Nam Asset Management Company (VAMC) issuing special bonds will help reduce the overall bad debt ratio to below 3 per cent in 2015.

 The State Bank Governor gave the Vietnam Asset Management Company (VAMC) the green light to issue up to 80 trillion VND (3.7 billion USD) worth of special bonds in 2015.

While the State Bank of Vietnam (SBV) says that settling bad debts through the Vietnam Asset Management Company (VAMC) is the optimal solution, economists doubt that it is actually helping the situation.

VietNamNet Bridge – The Vietnamese government is determined to bring total bad debts down to 3 per cent in 2015, well below last year’s 5.43 per cent.

 VietNamNet Bridge – SOEs may cease to be the engine of the national economy if they don't speed up restructuring.

 VietNamNet Bridge – There is widespread belief that state-owned bad debt buyer Vietnam Asset Management Company (VAMC) needs to quicken the sale of bad debts it has bought from banks.

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 VietNamNet Bridge – A resolution on bad debt would be the only way to resolve legal obstacles for buyers to purchase bad debts, especially foreign investors,

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 VietNamNet Bridge – Banks are continuing to struggle with fast rising potentially unrecoverable bad debts.

 The Vietnam Assets Management Company (VAMC) has purchased $2.83 billion worth of bad debts from 35 credit institutions by September 1, said Nguyen Quoc Hung – Chairman of VAMC’s member-board.

 VietNamNet Bridge – The regulation that banks cannot sell mortgaged assets below face value is the biggest barrier hindering debt settlement.

Surprisingly, no commercial bank has asked for refinancing from the State Bank (SBV), although SBV is ready to disburse funds.

 VietNamNet Bridge – The Vietnam Asset Management Company (VAMC) has bought tens of trillions of dong worth of bad debts from commercial banks, but it has not made any considerable progress in selling the debts.

 VietNamNet Bridge – Credit institutions have registered to sell more than VND30 trillion in bad debt to Vietnam Asset Management Company (VAMC), according to the State Bank of Vietnam.

 VietNamNet Bridge – Economists have urged banks to look to foreign sources to settle their bad debts as Vietnam Asset Management Company (VAMC) has limited funds and can issue special bonds only.

 VietNamNet Bridge – Shareholders in many banks have not received their dividends in recent years though banks have set low rates, but not cut them completely.

 VietNamNet Bridge – Credit institutions have reported the bad debt ratio of Vietnam’s banking system at 3.86 percent, while the State Bank’s Inspection Agency announced a bad debt ratio of 9.71 percent at the end of February.

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