"There are quite a number of international organizations showing their interest in the VAMC; the company has met some organizations, and plans to work with others," Thuy said.

Earlier, expert Le Xuan Nghia said in an interview with the state-run Baohaiquan.vn that in case bad debts were higher than expected, the central bank planned to increase capital to VAMC to issue more special bonds to deal with bad debts. In that case, the central bank may also provide refinancing loans to commercial banks with relatively long maturity, like 3 years.

So, depending on its actual operation, the VAMC can borrow more capital from local and foreign organizations or receive additional funds from the SBV, the local newswire Danviet.vn commented.

According to the finance ministry's guidance in the draft circular about VAMC disclosed on July 23, 2013, the VAMC is allowed to use working capital to carry out business activities on the principles of safety and capital development.

Besides, the VAMC can issue special bonds to buy bad debts of credit institutions at book value or use other legal sources of funds except special bonds to buy the debts at market value. In the latter case, it must seek the central bank's approval.

The state-owned firm can use funds to invest in and finance borrowers to handle temporary financial difficulties and recovery activities.

The VAMC can make investments ​​in various ways, such as depositing money at banks; contributing capital and purchasing shares (according to approved plan) to restructure the finance and activity of customers; repairing, improving collaterals for debts bought by the VAMC.

In addition, the VAMC is permitted to use capital to invest in or purchase fixed assets for its operation on the principles of suitability, efficiency and in compliance with the State regulations.

The company, with planned charter capital of VND500 billion, is expected to help the country to tackle between VND80 trillion to VND100 trillion worth of non-performing loans (NPLs) ($4-5 billion) with projected loan recovery rate of 20-40%.

On proposal that the VAMC can earn 2% of total debts recovered, the firm can book an income of VND320-800 billion. In 5 years, the annual income for VAMC is estimated at about VND60-160 billion, which will be used to offset associated costs.

Some believed that the VAMC would help local banks resolve bad debts and unfreeze credit flows while some said the VAMC could not solve the problem of banks' assets quality completely without significantly improvement in regulatory policies. StoxPlus