VAMC expects to reach US$5 billion of bad debts by the end of this year. — Photo youngfreemaine.com

HA NOI (Biz Hub) — The Vietnam Asset Management Company (VAMC) plans to buy bad debts worth US$5 billion by the end of this year, said General Director Nguyen Huu Thuy.

Speaking at a real estate conference organised by Auscham in Ha Noi on September 9, Thuy told domestic and foreign investors that VAMC has so far bought debts worth nearly $3 billion, reported infonet.vn. There are not only bad debts but also ‘good' assets.

Thuy clarified VAMC's functions and tasks, adding that just as it happens in many foreign countries, the volume of bad debts increases during an economic crisis. To solve this problem, the establishment of VAMC was essential, even though the operation models in various countries are different.

In Viet Nam, VAMC does not buy bad debts with funds from the State budget but had issued bonds in the initial stage. At that time, a number of organisations had thought it was a misconceived idea. However, after 13 months of operation, this model has proved to be a ‘creative' method.

The company currently owns about 40 factories in various sectors including paper, seafood, agricultural products, ports, industrial parks and urban area. This is a good opportunity for the investors to participate in the real estate market, said Thuy. — VNS