This is considered a move to help tackle the problems faced by Vietnam Asset Management Company (VAMC). However, according to the expert, this is still not enough. More in the following report.
The total bad debt currently managed by Vietnam Asset Management Company (VAMC) is about 11 billion USD. This amount was collected from 40 credit institutions in the 2013-2015 period. However, less than 1/10 of that amount was settled and returned to contribute to the production of economic supplies, which means more than 90% of bad debt still needs to be resolved.
There are regulations for each participant in the buying and selling bad debts. Credit institutions are governed by the circulars of the State Bank, while the VAMC is under the governance of the Ministry of Finance. However, the VAMC will meet with many difficulties, as the provisions on debt buying and selling are mentioned in many documents.
Therefore, overlapping content is likely to happen, making the buying or selling of debt even more inconvenient. In addition, debt holders do not have the right to make decision about the debt which they have purchased.
"We can’t prolong the process of bad debt settlement anymore. It is necessary to assign the State bank, as well as other commercial banks and the VAMC, the rights of creditors so that they can better address the issue. We also have to create a framework for the write-off of bad debt. However, we need a lot of money to do this", the economic expert Le Xuan Nghia said.
Many foreign investors are willing to spend billions of USD to buy bad debt from VAMC in the form of definitive purchasing. However, VAMC can’t accept all offers, due to the legal procedures.
"We need to revalue the bad debt based on market principles, and with the participation of both foreign and domestic investors. We have made efforts to accelerate the bad debt resolution; however, it is still slow because of the enforcement agency. Therefore, there should be synchronisation in the bad debt settling process, especially in the context of global integration", the economic expert Vu Dinh Anh said.
Settling bad debt by basing its purchase and sale on market price has been approved. However, economic experts still think that a more comprehensive legal framework is vital in order to create a transparent platform for the buying and selling of bad debt.
