Viet Nam Asset Management Company (VAMC) has collected debt worth some VND16 trillion (US$702 million) since the beginning of the year, VAMC’s general director Doan Van Thang revealed.

From August until now, since the Resolution 42/2017/QH14 on settling bad debts of credit institutions came into effect, VAMC collected debt worth VND5 trillion.

Since its establishment in 2013, total bad debt that VAMC has processed is VND66 trillion ($3 billion). It is expected to buy at least VND2 trillion of bad debt from credit institutions at the market price from now until the end of this year.

Thang said property seizure of VAMC has improved after Resolution 42/2017/QH14 came into effect.

Previously, credit institutions and VAMC seized property on the basis of Decree 163/2006/ND-CP on security transactions. However, the handling process was too slow due to weak creditors’ rights. Resolution 42/2017/QH14 protects creditors better and reaffirms the right to seize collateral.

According to the State Bank of Viet Nam, despite many difficulties and challenges, the above efforts and positive results will be a firm stepping stone for the banking sector to fulfil the objectives and tasks of 2017 and the following years, contributing to controlling inflation, ensuring macro-economic stability and supporting economic growth.

VAMC currently has charter capital of VND2 trillion, which it plans to increase to VND5 trillion in 2018 and VND10 trillion in 2020. — VNS