The reality of bad debt handling process associated with restructuring credit institution in Viet Nam and some solution

Abstract

Recently, under the drastic direction of the State Bank, credit institutions have actively improved the quality of
assets, controlled credit quality, made efforts to handle bad debts by urging debt collection, selling property,
collecting debt from judgment execution, using of risk provisions... However, bad debts always arise daily, in
parallel with the operations of credit institutions. Therefore, handling bad debts and strengthening the financial
situation of credit institutions is one of three key issues in restructuring credit institutions. The article assesses the
achievements in bad debt handling, associated with the restructuring of credit institutions in Vietnam. At the same
time, find out the limitations and obstacles that need to be removed to have appropriate solutions to thoroughly
handle bad debts, achieve the roadmap in the project of restructuring credit institutions.