Viet Nam’s Debt and Asset Trading Corporation (DATC) has targeted to settle VND3 trillion (US$131.6 million) worth of debts and assets in 2018, the highest since 2015.

The Ministry of Finance’s debt trader expects to earn a four-year high revenue of VND2.5 trillion this year. However, its after-tax profit is projected at a modest VND350 billion, down by 12 per cent against 2017.

In 2018, DATC will restructure the debts of some major State-owned enterprises, including Shipbuilding Industry Corporation (SBIC), Vietnam National Shipping Lines (Vinalines), Vietnam Northern Food Corporation and some other corporations.

According to DATC, an inadequate legal framework for debt trading activity has restricted the company’s efforts in supporting more companies in restructuring their debt purchase. Meanwhile, entanglement in divestiture by selling interest in whole lots, accompanied with debt (its specific characteristic), has not been resolved, negatively affecting the divestment progress.

By the end of 2017, DATC managed debts worth nearly VND20.6 trillion, accounting for 78 per cent of the total assets. Its charter capital was VND6 trillion.

Last year, it reported a total revenue of VND2.44 trillion and a net profit of nearly VND317 billion.

Viet Nam has two State debt trading companies, DATC and the Viet Nam Asset Management Company (VAMC). While VAMC is responsible for handling bad debts of commercial banks and financial institutions, DATC has focused on settlements of bad debt owned by State-owned enterprises in the pre- and post-equitisation processes. – VNS