VietNamNet Bridge - Sacombank and VP Bank are leading the list of banks with the highest NPL (non-performing loans) ratios.

VietNamNet Bridge - Both Vietnamese and foreign investors say they are willing to buy assets linked to bank debts. 

A number of valuable properties such as real estate projects, machinery and equipment worth up to trillions of dong have been distrained and brought to auction by commercial banks. Debtors are also selling their assets to pay debts.

VietNamNet Bridge – The Vietnam Asset Management Company (VAMC) and commercial banks have been seizing a series of valuable real estate assets to collect debts.

VietNamNet Bridge - The Vietnam Asset Management Company (VAMC) has begun using its right to seize mortgaged assets given to it by Resolution 42 on settling bad debts. 

VAMC (Vietnam Asset Management Company) is now holding VND230 trillion worth of bad debt, including real estate which is used as collateral for bad debts it has purchased from commercial banks.

Commercial banks said the 2015 Civil Code, to take effect on January 1, 2017, stipulates that if asset holders refuse to hand over their assets, which act as collateral for loans, banks will only have the right to sue for assets.

 VietNamNet Bridge – The interest rates on medium- and long-term loans to the property sector have recently increased by 1-1.5 percentage points.

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 stuck at the Vietnam Asset Management Company  is still a troublesome job.

VCCI's Vietnam Business Annual Report 2015 shows that half of foreign invested enterprises (FIEs) take losses but have the highest ROA (return on assets), ROE (return on equity) and ROS (return on sales) indexes.

VietNamNet Bridge - The Governor of the State Bank of Vietnam (SBV) Le Minh Hung, as soon as he took office, released two documents with instructions to settle commercial banks’ debts.

VietNamNet Bridge – Experts are concerned about new non-performing loans rising significantly while the Viet Nam Asset Management Company (VAMC) still has to devise radical measures to resolve bad debts acquired from banks. 

VietNamNet Bridge - The bad debt ratio of the banking system has been reported as dropping to 2.9 percent. However, the figure does not truly reflect the bad debt panorama.

VietNamNet Bridge - The bad debt ratio of the banking system has decreased, but the bad debt value has begun to increase again.

VietNamNet Bridge – Commercial banks offloaded a large volume of non-performing loans (NPLs) to the Viet Nam Asset Management Company (VAMC) in 2015 to reduce the bad debt rate to below 3 per cent. 

There is no debt trading market in Vietnam which is professional and large enough for businesses to trade debts. Debts have been either lying still, thus causing big losses to involved parties, or have been transferred around.

 VietNamNet Bridge – As of September, bad debt in the banking system had dropped to 2.9%, a steep fall from 17.43% recorded in the same month in 2012,

 VietNamNet Bridge – The Vietnam Assets Management Company (VAMC) has issued special bonds to purchase over 92 trillion VND (4.18 billion USD) worth of bad debts from the beginning of this year to October 20,

VietNamNet Bridge - The government has allowed the Vietnam Asset Management Company (VAMC) to buy bad debts with market prices in the primary market. However, the doors remain closed to the cash flow to the secondary market.

VietNamNet Bridge – Vice Chairman of the National Assembly’s Economic Committee Nguyen Duc Kien spoke with Nhan Dan (People) newspaper about the restructuring of the banking sector and solutions to deal with bad debts.