State Bank of Vietnam calls on VAMC to expand market-based non-performing loan trading as it reports VND 121,982 billion in recoveries

The State Bank of Vietnam published a readout of Deputy Governor Pham Tien Dung’s remarks at the Vietnam Asset Management Company for Credit Institutions (VAMC) Party Congress for the 2025–2030 term, where VAMC reviewed its 2020–2025 performance in non-performing loan (NPL) resolution and elected a new Party executive committee. VAMC reported purchasing 3,010 NPLs from 2,090 customers via special bonds, with on-balance-sheet principal of VND 87,989 billion and a purchase price of VND 83,444 billion, alongside 392 NPLs purchased at market price from 196 customers with on-balance-sheet principal of VND 6,608 billion and a purchase price of VND 7,217 billion. It also reported recovering VND 121,982 billion in principal, including VND 114,919 billion from special-bond purchases and VND 7,063 billion from market-price purchases; during 2020–2024, VAMC said it met the annual special-bond NPL purchase targets assigned by the State Bank of Vietnam. In his guidance for the new term, Dung asked VAMC to review its organisational setup to improve productivity and effectiveness, intensify market-based debt purchases and sales, strengthen coordination with credit institutions to identify feasible NPL portfolios, accelerate work-out of acquired NPLs and completion of related legal documentation for debts and collateral, and expand partnerships with investors to support advisory and brokerage activity aimed at developing an NPL trading market with VAMC positioned as a central hub. Following the congress, the newly elected committee was tasked with promptly issuing its working regulations, term work programme and assignment of responsibilities, and the congress also elected a delegation to attend the State Bank of Vietnam Party Congress.