Improving the capacity of processing of bad debts of VAMC in the next time

Abstract

Bad debts are considered as “clots”, which can obstruct the operation of the banking system, hinder the development of the economy. It is neccesary to have the intervention of the third party to solve these bad debts when they are too big. The establishment of a Asset Management Company (AMC) is one of the most efficient, most cost savings, the shortest time measure to process bad loans from the experience of other countries and the current situation in Vietnam. Therefore, the Vietnam Asset Management Company (VAMC) was born in 2013- marking a new step in the processing of bad debt. After nearly two years of operationg, the VAMC has achived certain success. Firstly, this paper which learn the birth and function of the VAMC then go to understand the status of processing bad debts of the VAMC; finally, provide some solutions to improve the capacity of the VAMC - based assessment of VAMC activities in recent years.