The non-performing loan (NPL) ratio at Việt Nam’s credit institutions has dropped from 3.61 per cent in 2013 to 2.18 per cent currently, according to the Việt Nam Asset Management Company (VAMC).

Deputy governor of the State Bank of Việt Nam (SBV) Nguyễn Kim Anh hailed the operation of VAMC over the past five years, saying that the company contributed significantly to lowering the NPL ratio of the entire banking system to below 3 per cent, while supporting enterprises during the debt-restructuring process.
According to VAMC chairman Nguyễn Tiến Đông, until June 30 this year, nearly VNĐ310.52 trillion (US$13.5 billion) of NPLs were resolved through VAMC, accounting for 40 per cent of the entire banking system’s total NPLs. Of the total, VAMC coordinated with credit institutions to recoup nearly VNĐ100 trillion.
Thanks to the National Assembly’s new resolution on NPL effective last year, the company recouped VNĐ30.85 trillion of NPLs in 2017, equal to nearly two thirds of the total NPLs recouped in 2013-2016, Đông said.
Besides the purchase of NPLs from credit institutions by using its special bonds, VAMC has so far also bought more than VNĐ3.1 trillion according to the market mechanism.
According to Đông, VAMC will gradually reduce the use of special bonds to buy NPLs and increase the purchase according to the market mechanism.
However, Đông suggested SBV increase the VAMC’s charter capital to VNĐ5 trillion by the end of this year and VNĐ10 trillion by the end of 2020 as approved by the Prime Minister in a move to provide it with more capital to buy NPLs according to the market mechanism. Currently, the company’s charter capital is only VNĐ2 trillion.
VAMC plans to recover VNĐ24.89 trillion of NPLs in 2018. It also sets to buy some VNĐ30.5-35.5 trillion of NPLs from credit institutions this year./.
Source: VNS