The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally VND50 trillion (US$2.15 billion) this year.
The Southeast Asia Joint Stock Commercial Bank (SeABank) has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), thereby helping the bank proactively monitor and handle bad debts.
The Việt Nam Asset Management Company (VAMC) is planning to develop a new strategy for buying and selling bad debts in Việt Nam this year, in which it will play a central role to promote the development of the debt trading market.
Local cement company Cong Thanh Group’s trillion-VND debts at Vietinbank will be shifted to Vietnam Asset Management Company (VAMC).
Vietnam’s finance and banking sector has reduced its ratio of non-performing loans (NPLs) – including both NPLs owned by credit institutions and the Vietnam Asset Management Company – from 17.2% in 2012 to 6.7% at the end of June 2018.
The Vietnam Asset Management Company (VAMC) plans to resolve at least VND140 trillion (US$5.95 billion) of non-performing loans (NPLs) from now until 2020, of which VND34.5 trillion will be settled this year.
Despite some corrections in the first half, bank tickers are expected to lead the market in the second half, buoyed by dwindling provisioning and upbeat profit prospect.
The ratio of the non-performing loans (NPLs) at commercial banks fell from 3.61% at the end of 2013 to 2.18% at present, according to Chairman of the Vietnam Asset Management Company (VAMC) Nguyen Tien Dong.
The Vietnam Asset Management Company has decided to hike its reference interest rate on bad debts to 9.9% from the fourth quarter, up from 9.7%.
The banking sector’s total bad debts stood at 2.51 percent as of the end of July 2017, falling from 2.55 percent at the end of 2015, according to a report by the State Bank of Vietnam (SBV) to the National Assembly.
The Vietnam Asset Management Company (VAMC) will need more capital to further benefit from the National Assembly’s recent resolution on the settlement of non-performing loans (NPLs), experts said.
The future of the ill-fated US$256-million Saigon One Tower remains uncertain after Vietnam Asset Management Company recently announced that the project will be seized due to the owners’ accruing significant bad debts.
The Prime Minister has issued Decision 1058/QD-TTg approving a project on restructuring the system of credit institutions in combination with settling bad debt for the 2016-2020 period.
The Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) aims to tackle VND20 trillion (US$880 million) of bad debts in 2017, with the bank taking drastic measures to implement a restructuring scheme, said its chairman Duong Cong Minh.
Vietnam’s total loans by May 25 grew 6.53% from the end of 2016, which supported domestic production and business in the context of slow public investment disbursement since the beginning of the year.
Flawed legal regulations on collateral for debt collection have hampered bad debt settlement, participants said at a workshop in Hanoi on May 23.
Mergers and acquisitions (M&A) activities in the banking sector in the past two years seem to have cooled down, and without the right policies that would solve major bottlenecks in the process of buying banks, it is unlikely to pick up soon.
The Government has issued an action programme to implement the policies on economic restructuring and building of a new growth model for the period between 2016 and 2020.
Credit ratings agency Moody’s has indicated that the outlook for the banking system in Vietnam is stable over the next 12-18 months, reflecting Moody's expectation that the country's macroeconomic stability and resilient economic growth will continue to support the banks' weak credit profiles.
The Vietnam Asset Management Company (VAMC) could meet a target to recover VND30 trillion (US$1.339 billion) of bad debts this year, VAMC Deputy General Director Nguyen Van Thang said.