CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
VAMC resolves US$13.4 billion in bad debts
Ngoc thuy 15:14, 2018/07/30
The central bank-run Vietnam Asset Management Company (VAMC) plays a vital role in solving bad debts in the banking system, according to the State Bank of Vietnam`s representative.
VAMC has resolved VND310.5 trillion (US$13.4 billion) in bad debts from its establishment in mid-2013 to June 30, 2018, accounting for 40% of total bad debts solved in the banking system in the same period, the State Bank of Vietnam (SBV) said on its website.
 
Illustration photo.
Illustration photo.
VAMC's operations have contributed to bringing down the bad debt ratio to 2.18% of total outstanding loans from the previous rate of 3.61% in 2013, below the 3% target set by the National Assembly. 

In the five year period, VAMC in collaboration with credit institutions recouped VND100 trillion (US$4.31 billion). 

Thanks to the introduction of Resolution 42 in August 2017, VAMC has reclaimed VND30.8 trillion (US$1.32 billion) in bad debts alone, up nearly VND2 trillion (US$87.9 million) year-on-year and 40% above the initial target. 

The toxic loans recouped by VAMC in 2017 are equivalent to over two thirds the total value recouped by VAMC in the previous four years. 

The resolution, which came into effect last August, provides special pilot treatment of bad debts at credit institutions.

In 2017, VAMC purchased bad debts worth VND3.1 trillion (US$133.86 million) in cash at market value, of which the company later recouped VND2.9 trillion (US$125.2 million) or equivalent to 90% of the paid amount. 

Deputy Governor of the SBV Nguyen Kim Anh considered VAMC as the state's special instrument in solving bad debts, creating stability for the banking system over the last five years. 

In 2018, VAMC set target of purchasing bad debts worth VND27 trillion - VND32 trillion (US$1.1 billion - US$1.4 billion) with special bonds and VND3.5 trillion (US$153 million) with cash at market value, while handling bad debts worth VND24.9 trillion (US$1.1 billion). 
Comments
Other news
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.