Vietnam to Create National Asset Management Company
May. 2 -The Vietnamese government is set to approve a decree that will officially establish a national asset management company to help with the resolution of bad debts in the country. The company has already received the Politburo’s in-principle approval.
The central bank has submitted its detailed plans for the company, which will be called the Vietnam Asset Management Company (VAMC). It is yet to specify when the company will be established.
The state-run VAMC, under the State Bank of Vietnam’s (SBV) management, will help banks and enterprises deal with their bad debts. The VAMC will play an important role in controlling bad debts – which are the main culprit for the banking system’s weak liquidity.
Vietnamese Minister Vu Duc Dam noted that the VAMC is just one of several various methods thought of to deal with bad debts throughout the country.
“There is no model in the world for forming this kind of company that we can completely copy. During the company’s operations, we will constructively listen to comments to adjust it if necessary,” he said.
In related news, Vietnamese Prime Minister Nguyen Tan Dung has approved a master plan to revamp the economy by way of establishing an inter-sectoral steering committee to restructure banks by 2015.
The committee will consist of a total of 14 members headed by the Deputy Prime Minister Vu Van Ninh and central bank Governor Nguyen Van Binh. It will coordinate with ministries and local officials to help the Prime Minister (PM) direct the implementation of measures to restructure the local banking industry in accordance with the approved restructuring scheme. It will also advise the PM in dealing with issues that may arise in implementing the credit restructuring scheme.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
You can stay up to date with the latest business and investment trends across Vietnam by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.
An Introduction to Doing Business in Vietnam
This new 32-page report touches on everything you need to know about doing business in Vietnam, and is now available as a complimentary PDF download on the Asia Briefing Bookstore.
- Previous Article Vietnam to Establish SME Development Fund
- Next Article Vietnam Issues Regulatory Update Affecting Foreign Retail Enterprises