The Vietnam Asset Management Company buys 42 trillion VND in bad debt

The Vietnam Asset Management Company (VAMC) has thus reached nearly 50 percent of the year's target. VAMC currently issues special bonds in return for bad debt, which commercial banks may use as collateral to secure funding from the State bank.

According to VAMC representatives, the  results from the first six months hint that the plan of purchasing bad debt from 60 percent of all credit institutions is on the right track. The ultimate goal is to bring the bad debt ratio in the banking system down to 3%.