Solutions to promote the activities of buying bad debts based on market value of VAMC

Abstract

Vietnamese Assets Management Company (VAMC) was established on 27/3/2013 with Decision 1459/QĐ-NHNN by The
State Bank Governor and started buying debt since October 2013. After 3-years-operation, VAMC has accomplished
its mission, improving the whole picture of bad debts among Vietnamese credit institutions, reducing bad debt ratio of
the Banking Sector to lower than 3%, healthier the financial situation of Bank industry, resolving the difficulties for
enterprises and promoting the development of economy. However, VAMC recently deploy to buy debt by using special
bonds. Buying debts based on market value has deployed but do not gain any results due to some difficulties and
problems in the mechanism that need to be removed. This article is focused on analyzing the difficulties and problems
around the mechanism of buying bad debt based on market value, from that giving recommendation and suggesting
solutions to promote the activities of buying bad debts based on market value of VAMC