First debt trading floor in the pipeline in Vietnam
VOV.VN - The State-run Vietnam Asset Management Company (VAMC) has initiated plans to establish a debt trading floor over the next five years to deal with commercial banks’ non-performing loans and attract investors.
Under the VAMC’s Development Strategy till 2025 with a vision towards 2030 approved by the State Bank of Vietnam, the VAMC will be developed into a centre that operates in activities relating to handling bad debts. The company will have sufficient capacity and enough resources to perform functions such as buying, selling, and handling bad debts, in addition to valuing and auctioning assets.
During the 2021 to 2015 period, the VAMC must complete the establishment of the debt trading floor and put it into operation. Simultaneously, the debt/asset data centre will be built through the VAMC, with the aim of carrying out information connection with the National Credit Information centre (CIC) and credit institutions. This is being done in order to create data sources to exploit and to choose which debts/assets to handle.
To realise the goal, the VAMC must seek partners and investors, while expanding operations to include buying and selling debts and assets from all sectors of the economy. It will also operatw an online auction trading platform in a bid to promote asset auction activities through the VAMC.
With regard to the VAMC’s financial capacity, SBV will submit to competent authorities an additional charter capital for the company of VND10 trillion for the period 2020 to 2021.
Commercial banks have put up debts or collateral worth trillions of Vietnam Dong for auction to recover and settle bad debts. However, experts say it is not easy to attract investors due to legal barriers.
With the first debt tradining floor to take shape in the coming year, banks expect tradining in debts or collateral will be on the upswing to attract investors in Vietnam.
