This year, the Vietnam Asset Management Company (VAMC) aims to issue VND20,000bn of special bonds, buy non-performing loan (NPL, bad debts) at the market price of VND4,500bn and recover VND50,000bn of bad debts. In order to ensure sufficient capital to promote debt purchase at market value, VAMC want to grant enough charter capital of VND5,000bn according to the plan approved by the Prime Minister.
In 2018, VAMC purchased 761 debts of 13 credit institutions with the total original balance of VND30,917bn. The debt purchase price was VND29,812bn, which achieved 93.2% of the special bond volume under the SBV’s approved plan in 2018.
As of December 31, 2018, VAMC has bought NPLs by special bonds with total internal debt balance of VND338,849bn, debt buying price is VND307,567bn.
Implementing the National Assembly’s Resolution No. 42 on piloting bad debt handling and the instructions of the State Bank in 2018, VAMC has bought NPLs at the market value of 40 debts with a total purchase price of 2,818.7VNDbn, contributing to handling over VND5,200bn of bad debt to credit institutions, increasing VND1,684bn compared to 2017, reached 80.5% of the plan approved by the SBV.
The total amount of debt recovered by VAMC in 2018 is VND37,512bn. The accumulated amount from 2013 to December 31, 2018 is VND119,000bn. VAMC also sold VND10,925bn of bad debt, VND5,200bn of Collateral in 2018, debt restructuring was VND1,156bn.