VAMC

Update news VAMC

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.

Gov’t: Bad debt ratio falls to 2.9%

 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,

VAMC buys 92 trillion VND worth of bad debts

 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,

Secondary debt trading market not open yet for foreign investors

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.

Bank restructuring in good progress: expert

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.

VAMC buys VND40-trillion bad debts in January-May

 VietNamNet Bridge – Vietnam Asset Management Company (VAMC) looks to purchase bad debts totaling around VND40 trillion (US$1.8 billion) by the end of this month,

Barriers removed from purchasing debt, but foreign buyers proceed slowly

VietNamNet Bridge - All the barricades that prevent foreign investors from buying bad debt from Vietnamese commercial banks have been removed, but everyone is still moving slowly and cautiously.

VAMC given more power, but future actions remain uncertain

VietNamNet Bridge - Under a new regulation, the Vietnam Asset Management Company (VAMC) can issue bonds to get money to buy bank debts at market prices. However, the bonds will be issued only to domestic credit institutions.

Banks cannot sell debts because DATC doesn’t accept market prices

VietNamNet Bridge - The banks’ debt sale has been going very slowly because a powerful buyer, the Debts & Assets Trading Corporation (DATC), wants to buy debts cheaply.

Bank’s bad debt: easier bought than sold

VietNamNet Bridge - The State Bank of Vietnam (SBV) has released an ultimatum for commercial banks that they must sell all their bad debts by the end of the third quarter of 2015.

SBV mandates sale of NPLs

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.

VAMC special bonds may not decrease bad debt ratio in 2015

 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.

State firm to issue 3.7 billion of special bonds

 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.

Bad debt situation made worse by VAMC

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.

SBV aims to get bad debts to below 3%

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.

SOEs cop blame for public debt

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

Breaking impasse in tackling bad debts

 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.

BUSINESS IN BRIEF 19/12

Teenagers with assets can open bank accounts on their own; MoF recommends fee, levy changes; VAMC has bought bad debts worth $4.76 billion; Power tariffs seen rising; FTAs to bolster up Vietnam’s economy: minister

New legal framework needed to tackle NPLs

 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,

BUSINESS IN BRIEF 4/11

 Malaysia-VN trade to reach $10b; NA urges faster SOE restructuring; Deposit rate cut has little effect; PetroVietnam told to finish refinery plan; Mobile World hits yearly target in 9 months; Mastercard looks at local non-cash payment sector