General Director Nguyen Huu Thuy told Bloomberg that VAMC will give priority to purchase debts of the banks with the highest bad debt ratios and the debts that are guaranteed by real estate. The first transactions will be done in the next two weeks.

 VietNamNet Bridge – The commercial banks which have the bad debt ratios higher than 3 percent of their outstanding loans will have to sell bad debts to the Vietnam Asset Management Company (VAMC).

 VietNamNet Bridge – The Vietnam Asset Management Company (VAMC) would officially begin activities from July 26 this year with the task of helping resolve bad debts and boost credit growth in Vietnam.

 VietNamNet Bridge – Experts have warned that the Vietnam Asset Management Company (VAMC) may be “jobless,” because it may have no debt to trade.

The pressure on the banking system has been eased once the bad debts are on the decrease. However, bankers themselves admitted that their worries still have not been lifted.

The Vietnam Asset Management Company (VAMC), a powerful legal entity established to restructure the bad debts, would issue bonds to deal with the debts.

 VietNamNet Bridge – In July 2011 E-Mart, South Korea's top discount store chain, signed an agreement with Viet Nam's U&I Investment Corporation to form a distribution joint venture in the country.

 VietNamNet Bridge – Policies should be made more liberal for foreign investors to get involved in debt trading, and thus bad debt settlement can be accelerated,

The reports from 10 State Bank’s local branches showed that Hanoi, HCM City and Da Nang are the localities with the highest bad debt ratios.

 VietNamNet Bridge – The National Financial Supervision Committee has forecast that Vietnam’s inflation rate in 2013 will be controlled at less than 7 percent.

A lot of banks would try to conceal their bad debt situation and would not sell the bad debts to the VAMC, a company to be set up by the State to help banks escape from unrecovered debts.