Vietnam Asset Management Company (VAMC) plans to buy from VND70-100trn (USD3.3-4.7bn) bad debts this year to help reduce the banking sector's bad debt level to three percent of outstanding loans.
The Vietnamese banking sector's bad debt rate expected to be a 3%
The State Bank of Vietnam (SBV) reported that, as of November 2014, Vietnam's lenders were carrying bad debt estimated at VND161.86trn, accounting for more than 3.8% of total outstanding loans.
The SBV said it would make an official report on bad debt levels for 2014 at the end of January.
Nguyen Quoc Hung, chairman of VAMC’s member board, said that in 2014, the VAMC had bought VND81.6tr worth of bad debt, and would buy VND70-100trn more bad debt in 2015.
VAMC has asked the government to let it increase its registered capital to VND2trn (USD92.3 million) so that it can issue convertible bonds to increase its ability to acquire bad debt.