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VIETNAM ASSET MANAGEMENT COMPANY – FUNCTIONS AND STRUCTURE

Second draft: December 23, 2013

Abstract
This study examines the Vietnam Asset Management company, more specific about the functions and structure. It includes the establishment, objectives, principles of operation, conditions for bad debts purchased, and main activities of Vietnam Asset management Company. The study also deals with bad debt solving process of Vietnam Asset Management Company as well as its weaknesses, causes... The Vietnam Asset Management Company, a powerful legal entity established to restructure the bad debts of the State Bank of Vietnam is expected to help decrease bad debts to manageable levels by 2015. Vietnam Asset Management Company can not solve the bad debt issue alone but will also coordinate with various ministries and sectors. With the bad debts situation in Vietnam recently, the forming of the Vietnam Asset Management Company is a sound and necessity decision.

Keywords: Vietnam Asset Management Company, bad debts, non-performing loans, credit institutions

Abbreviations

VAMC
AMC
SBV
NPLs
DATC
NAMA
Danaharta
KAMCO
Off- balance sheet

On- balance sheet

Book value

State- owned/ State- run

Vietnam Asset Management Company
Asset Management Company
State Bank of Vietnam
Non- performing Loans
Debt and Asset Management Corporation
National Asset Management Agency
Pengurusan Danaharta Nasional Berhad
Korea Asset Management Corporation
Fiancial activities not on the banks’ balance sheet
Financial activities on banks’ balance sheet
The value of debts according to its balance sheet account balance
Government- owned or gorvernment- run

INTRODUCTION
Bad debts together with bad debts solving is one of the most important problems of Vietnam’s economy recently. In 2012, the ratio of non-performing loans to total loans held by Vietnamese banks reach 4.76% ,exceeding a warning threshold


References: Thái Ninh. Commercial banks in Khanh Hoa - bad debts and solutions, 2013. Decree No.53/2013/ND-CP dated of May 18, 2013 of the Government on the establishment, organization and operation of the Vietnam Asset Management Company. Circular No. 20/2013/TT- NHNN dated of September 9, 2013 on providing for refinanced loans on the basis of special bonds of company for asset management of Vietnam credit institutions. Bank’s bad debts drop suspiciously. Tien Phong Journal, 2013. VAMC. Vietnamnet Journal, 2013 Non- performing loans settlement Mario C. Willems. KAMCO, Korea’s solution to Asia crisis. Final paper, International Finance IS502, 2003 David Harrison and Elaine Chew
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