Bad debt trading platform to start operation

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation today (October 15).

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation on October 15. — Photo vneconomy.vn

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation on October 15.

Nguyen Trong Du, Deputy Chief Inspector of State Bank of Viet Nam said the major tasks of the floor are to provide consultancy services in debt and asset trading and act as an intermediary to arrange the sales of bad debt and collateral for bad debts among relevant parties.

According to Doan Van Thang, General Director of VAMC, the debt exchange will be a market for debt and asset trading to take place. It will bring together buyers and sellers and act as a go-between to help them reach a deal. Participants who have “something” to sell are free to list on the exchange.

As soon as the exchange is launched, VAMC will take the role of a market maker. Other participants are credit institutions, asset management companies (AMC) affiliated to credit institutions, and enterprises running debt trading services regulated in Decree 69/2016/ND-CP.

 

Bad debts listed on the exchange are expected to come from two sources. The first source is debts purchased by VAMC at market price, estimated to be around VND3 trillion (US$132 million). These debts are set to be traded immediately as soon as the exchange opens its first-ever session. The second source is debts from credit institutions and AMC affiliated to credit institutions.

Previously, credit institutions sold bad debts or collateral for bad debts publicly and transparently in accordance with Resolution No 42/2017/QH14. However, the resolution is just a pilot and remains in force for only five years, thus it does not apply to handling all non-performing loans (NPL) of credit institutions in the long-run.

VAMC believes this exchange will offer new services to effectively deal with bad debts, foster the development of a bad debt market and enhance the role of VAMC as the center of the market.

Source: VNS

VAMC bad debts platform facilitates market options

VAMC bad debts platform facilitates market options

The upcoming bad debt exchange platform from Vietnam Asset Management Company is being viewed as a promising legal intermediary which can effectively deal with sour loans, 

 
 

Other News

.
Trading value at stock market reaches record high
Trading value at stock market reaches record high
FEATUREicon  22/11/2021 

Cash keeps flowing into the stock market, including during trading sessions when the VN Index falls.

Hard limit for credit institutions buying corporate bonds
Hard limit for credit institutions buying corporate bonds
BUSINESSicon  22/11/2021 

Credit institutions with a bad debt ratio of more than 3 per cent are forbidden to buy corporate bonds, according to the latest announcement from the SBV.

Stock market to be turned into main medium and long-term capital channel
Stock market to be turned into main medium and long-term capital channel
BUSINESSicon  22/11/2021 

After 25 years of development, the Vietnamese stock market is playing a more important role in attracting capital, supporting the commercial banking system. 

Vietnam-Australia investment, trade promotion centre inaugurated
Vietnam-Australia investment, trade promotion centre inaugurated
BUSINESSicon  22/11/2021 

Vietnamese Ambassador to Australia Nguyen Tat Thanh attended a ceremony to inaugurate the Vietnam-Australia Trade and Investment Promotion Centre on November 20.

EU enterprises in Vietnam optimistic again
EU enterprises in Vietnam optimistic again
BUSINESSicon  21/11/2021 

The leadership of European Union enterprises in Vietnam has become more optimistic about Vietnam’s business environment after the social distancing has ended, and commerce and investment have begun the “new normal.”

Authorities, enterprises collaborate to respond to trade remedy lawsuits
Authorities, enterprises collaborate to respond to trade remedy lawsuits
BUSINESSicon  21/11/2021 

Vietnam is currently facing 208 trade remedy lawsuits, and this figure is expected to increase sharply in the coming time, causing the market share of Vietnamese goods to be at risk of shrinking in many export markets.

Vietnam and the ‘90% economy’
Vietnam and the ‘90% economy’
FEATUREicon  21/11/2021 

While Vietnam's economy is still struggling with difficulties, the world economy is recovering clearly, after a long period of paralysis due to the impact of the Covid-19 epidemic.

Black Friday 2021 launched in HCM City
Black Friday 2021 launched in HCM City
BUSINESSicon  20/11/2021 

The shopping festival Black Friday was kicked off on November 19 in Ho Chi Minh City.

Vietnam wins big tea contract with Malaysian partner
Vietnam wins big tea contract with Malaysian partner
BUSINESSicon  20/11/2021 

Nam Son Co., Ltd and Asia Tea of Vietnam will supply tea to Kong Wooi Fong Tea Merchants Sdn Bhd based in Malaysia under a contract worth up to 2 million USD.

Decrease in in seafood exports expected as a result of new Chinese policy
Decrease in in seafood exports expected as a result of new Chinese policy
BUSINESSicon  20/11/2021 

Vietnam’s seafood exports to China are likely to decrease sharply as Chinese customs are tightening control over imports.

Consumers more prudent with post-pandemic personal finances
Consumers more prudent with post-pandemic personal finances
BUSINESSicon  20/11/2021 

After giving birth to their second daughter, Thanh Van, a 39-year-old office worker in Hanoi, had to quit her job because she could not afford the cost of hiring a babysitter after a 30 per cent pay-cut due to the COVID-19 pandemic. 

Digital transformation to create new growth engine for Vietnam's agriculture
Digital transformation to create new growth engine for Vietnam's agriculture
BUSINESSicon  19/11/2021 

As digital transformation will help overcome most of the weaknesses faced by the local agriculture sector, it should be considered a breakthrough solution for sustainable growth and development in Vietnam.

Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
BUSINESSicon  19/11/2021 

Many flower and bonsai farmers in HCM City and the Cuu Long (Mekong) Delta have reduced production for Tet (Lunar New Year) which falls early next year since they are worried the COVID-19 pandemic will affect demand.

VIETNAM BUSINESS NEWS NOVEMBER 20
VIETNAM BUSINESS NEWS NOVEMBER 20
BUSINESSicon  20/11/2021 

Binh Duong remains attractive to foreign investors

Vietnam may have new USD billionaires
Vietnam may have new USD billionaires
BUSINESSicon  19/11/2021 

If assets are calculated according to the value of the stock market, Vietnam will have more USD billionaires.

Vietnam among top 10 countries with largest installed solar power capacity
Vietnam among top 10 countries with largest installed solar power capacity
BUSINESSicon  19/11/2021 

Visual Capitalist has listed Vietnam among the world’s top 10 for largest installed solar power capacity.

Global energy crisis: another concern for Vietnam's economy
Global energy crisis: another concern for Vietnam's economy
FEATUREicon  19/11/2021 

Disrupted coal mining in Ordis in Inner Mongolia, the most important coal mining hub in the world, is posing huge risks that could stifle global growth.

Too many traceability apps confuse farm-produce buyers
Too many traceability apps confuse farm-produce buyers
FEATUREicon  19/11/2021 

The farm produce traceability system in Vietnam still doesn’t match GS1 standards (the most widely used system of standards in the world), and, as such, the existing traceability apps are just for internal use.

More businesses seek black credit as cash flow plummets
More businesses seek black credit as cash flow plummets
FEATUREicon  19/11/2021 

Seventy-one percent of businesses anticipate revenue decreases in 2021, higher than the 65 percent figure in 2020, according to a survey.

VIETNAM BUSINESS NEWS NOVEMBER 19
VIETNAM BUSINESS NEWS NOVEMBER 19
BUSINESSicon  19/11/2021 

Seafood stocks surge on business recovery

 
 
 
Leave your comment on an article

OR QUICK LOGIN