Vietnam to Create National Asset Management Company

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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.

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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.

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