return icon Vietnamnet.vn

Vietnam likely to have debt exchange

The State Bank of Vietnam has asked the Vietnam Asset Management Company (VAMC) to come up with a plan to establish a debt exchange and submit it to the competent agencies for approval.

 

The Saigon One Tower in HCMC’s District 1 has been put up for sale many times to recover bad debts but it has yet to find a buyer - PHOTO: NLD

 

It is part of the VAMC’s tasks stated in the central bank’s decision on the development strategy of VAMC until 2025 with a vision toward 2030. The company was asked to complete the establishment and put the debt exchange into operation in the 2021-2025 period, the local media reported.

It must also build a debt and asset data center which will be connected with the National Credit Information Center and credit institutions.

To do so, it must take the initiative in seeking new partners and investors to sell bad debts and propose the establishment of an online auction platform to enhance the auction of assets at VAMC.

To increase VAMC’s financial capacity to fulfill these tasks, the central bank will propose the competent agencies provide capital for VAMC to increase its charter capital to VND10 trillion in the 2020-2021 period.

The early establishment of the debt exchange is expected to boost the settlement of bad debts at commercial banks and attract investors.

Commercial banks have repeatedly put up mortgaged assets for auction, including property products, factories, machines, vehicles, equipment, materials, vessels, shares and farms, to recover bad debts.

According to the deputy general director of a commercial bank, the debt exchange will make debt transactions more transparent and help banks settle bad debts faster.

Many local and foreign investors are keen on the debt trading market but remain hesitant in getting involved in bad debt transactions.

Dr Nguyen Quoc Anh from the Banking Faculty of the University of Economics HCMC said the debt exchange establishment is an indispensable trend amid the integration process. However, it is necessary to build a legal corridor for the debt trading market, facilitating the participation of many entities.

In other countries, debt exchanges attract not only private investors but also venture funds and enterprises. Vietnam should study some debt exchange models of foreign countries.

Meanwhile, Dr Dinh The Hien, an economic expert, said if all types of debts are put up on the exchange, it may be hard to attract investors. Therefore, debts with collateral of property products whose values and legality can be easily assessed should be introduced first. SGT

 

 

MORE NEWS

HAGL Group repays bonds worth trillions of VND

The Hoang Anh Gia Lai Group (HAG) of entrepreneur Doan Nguyen Duc eased its debt burden of VND6.6 trillion in bonds prior to Decree 65’s issuance.

70-year-old publishing industry tries to catch up with rest of the world

Tran Chi Dat, Director and Editor-in-Chief of the Information and Communications Publishing House, says that e-books and other modern publishing models are now giving more choices to readers in accessing content.

Vietnam's first monkeypox patient tests negative, symptoms disappearing: hospital

The patient, a 35-year-old woman who return from Dubai, is no longer suffering from fever, while the blisters on the face, hands and feet have dried up, peeled off and new skin is forming, said the doctors treating her.

Largest-ever Vietnamese rock concert to hit stage in HCM City

Leading rock bands and singers from across the country are set to perform in the World Rock Vietnam concert which will get underway on December 10 in Ho Chi Minh City.

Vietnam to impose temporary anti-dumping duties on Chinese tables, chairs

Vietnam will impose temporary anti-dumping duties on some table and chair products originating from China, the Vietnamese Ministry of Industry and Trade has said.

More former officials arrested over repatriation flights bribery scandal

Three more people, including two former diplomatic officials, have been arrested for their involvement in a bribery case at the Ministry of Foreign Affairs' Consular Department.

Vietnam to send two football teams to AFF Club Championship 2023

Vietnam will send two clubs to the ASEAN Football Federation (AFF) Club Championship 2023, according to the Vietnam Football Federation (VFF).

ST24, ST25 rice trademarks protected in Australia

Australian Intellectual Property (IP Australia) has officially issued trademark protection certificates to three brands of ST24 and ST24 rice produced by Ho Quang Tri Private Enterprise.

Retail stocks with positive outlook

Retail stocks, in general, are expected to produce positive business results this year, especially in the third quarter.

Artificial Intelligence applied to weather forecasting in Vietnam

The Vietnam Meteorological and Hydrological Administration has applied Artificial Intelligence (AI) in hydrometeorology monitoring and forecasting, making typhoon and torrential rain prediction more accurate.

Visiting Quang Tri to enjoy its speciality: bun chat chat

Mussel vermicelli in Quang Tri’s Mai Xa Village has been recognised as one of the top 100 of Vietnam’s outstanding specialties.

Detective genre makes steady literary comeback

The detective genre is undergoing a literary renaissance in Vietnam.

Only 1.7 million foreign arrivals to VN first 9 months

The number of foreign travelers to Vietnam was 1.65 million in January-September 2022, while the yearly target is 5 million, said the Vietnam National Administration of Tourism (VNAT).

Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Vietnam out of Asian Futsal Cup after losing to Iran in quaterfinals

Vietnam ended their journey at the AFC Futsal Asian Cup 2022 in Kuwait after losing 8-1 to powerhouse Iran in the quarter-finals.
back_to_top