VietNamNet Bridge - Before becoming the first chair of VAMC, Dang Thanh Binh was Deputy Governor of the State Bank, responsible for taking care of bad debt and credit institution restructuring.

Binh spent 25 years working in the finance & banking sector. In 1994, he was the director of the Finance Institutions Department. In 1997, he took office as director of the Legal Department.

In 2002, he was appointed to the post of director of the Department of Personnel and Organisation, and three years later, he took office as deputy governor of the State Bank.

He assumed the position of head of the preparatory committee for the establishment of the Vietnam Asset Management Company (VAMC). The company was officially set up in 2013 after the central bank’s decision, and Binh became the first chair of the company in July 2013.

Nguyen Quoc Hung, deputy CEO of Agribank, was appointed to the post of deputy chair of VAMC. The post of general director of VAMC was assigned to Nguyen Huu Thuy, deputy director of the Foreign Credit Agency Inspection Department, an arm of the Inspection Agency under SBV.

However, the post of VAMC’s chair was transferred to Hung after one year after Binh retired.

Before becoming the first chair of VAMC, Dang Thanh Binh was Deputy Governor of the State Bank, responsible for taking care of bad debt and credit institution restructuring.

At that time, the leadership at the State Bank included Governor Nguyen Van Binh and six Deputy Governors – Nguyen Dong Tien, Nguyen Toan Thang, Le Minh Hung, Dao Minh Tu, Nguyen Phuoc Thanh and Nguyen Thi Hong.

A report shows that by the end of June 2014, the company had purchased VND51 trillion worth of debt from credit institutions. The figure had increased twofold by the end of the year to VND123 trillion in principal, of which VND4 trillion had been settled.

By the end of March 2017, after three years of operation, VAMC had purchased 25,631 bad debt items from 42 credit institutions in Vietnam with the total original outstanding loans of VND282.124 trillion at the price of VND245.672 trillion and with payments in  special bonds.

As the two banks have finished settling bad debts sold to VAMC, the number of credit institutions holding special bonds is 40.

Most of the debts VAMC bought from banks are ones mortgaged by properties or assets created from loans.

Of these, real estate assets are worth VND268.872 trillion, accounting for 62 percent, while assets in land are valued at VND31.308 trillion, or 7.2 percent; valuable papers VND12.902 trillion, 3 percent; and machinery & equipment VND22.097 trillion, or 5.1 percent.

Binh has been prosecuted on the charge of lacking responsibility, causing serious consequences in a case related to Pham Cong Danh, former chair of the Construction Bank.