The Law on credit institutions 2024, effective from Jul. 1, 2024, introduced new provisions on state-owned debt trading entities, necessitating updates to decree 53.
Decree 53 lacks legal provisions allowing VAMC to purchase bad debts from foreign credit institutions or their branches at market value, now permitted by the 2024 law.
Resolution 42 on pilot handling of bad debts expired in Jan. 2024, and VAMCs' right to seize collateral assets is no longer valid without new legal authorization.
Amendments
To align VAMCs' operations with the 2024 law, the proposals seek to unify the regulatory framework and remove outdated or overlapping administrative procedures.
Also aim to improve the legal basis for VAMCs' role in handling bad debts.
Expand coverage to joint-venture banks, foreign-owned credit institutions, foreign bank branches; affirms VAMCs' role as 100% state-owned entities managing bad debt.
Introduce updated definitions for borrowers, and permits purchases from foreign institutions only at market value; collateral can only be seized if authorized by law.
Viable borrowers may still receive credit even after their bad debts are sold to VAMCs.
Requirements for VIE CB approval of each debt purchase plan and bond issuance are abolished; instead, such plans are approved within a VAMC’s annual business plan.
Priority for payment during asset liquidation is updated in line with art 199.
Effectiveness
Comment period for the consultation is not mentioned.
Jun. 2025 Feedback Received
On Jun. 11, 2025, VIE CB consolidated feedback received from the consultation above.
Sep. 2026 Decree Issued
On Sep. 17, 2026, VIE GVT issued decree no. 359/2026/ND-CP, a new decree on VAMC establishment, organization, operations, and financial mechanisms.
The issued decree repeals it and two amending decrees in full; VIE GVT is the issuing authority, and VAMC charter capital is set at VND 5trn.
The decree is effective from Nov. 6, 2026.
Regulators
VIE CB
Entity Types
Bank
Reference
Dec 359/2026/ND-CP, 9/17/2026; Rsp, FS 6/11/2025; CP 5/5/2025; Dec 53/2013/ND-CP, 5/18/2013;
