Vietnam: Bad debt disposal

Abstract

The Vietnam National Assembly has been taking steps to reduce the bad debts of credit institutions, including those sold to the Vietnam Asset Management Company (VAMC), to less than three percent of the total outstanding loans by 2020. As part of these efforts, on June 21 2017, the National Assembly passed Resolution 42/2017/QH14 on handling bad debts of credit institutions on a pilot basis. The Resolution will be implemented for five years only, from its effective date of August 15 2017, and addresses only bad loans that materialised within a certain period.