Handling Bad Debt of Credit Institutions – Experience from Vietnam Asset Management Company (VAMC)

Abstract

Due to the impact of the global financial crisis, since 2010 Vietnam's economy began to decline, production and business activities of enterprises faced many difficulties leading to bad debt ratios at credit institutions tend to rise and having complicated movements. In order to stabilize the situation, in 2013, the State Bank established the Vietnam Asset Management Company (VAMC). VAMC's activities have brought about certain results in resolving bad debts of credit institutions. This study focuses on VAMC's bad debt handling activities from 2013 to 2018, draws on successful experiences as well as restrictions and recommends some recommendations to enhance bad debt handling efficiency of VAMC