Pilot disposal of bad debts of credit institutions to the end of December 31, 2023

Accordingly, the National Assembly has approved the extension of the pilot disposal of bad debts of credit institutions from August 15, 2022, to December 31, 2023.

During the extended period of the Resolution, the Government requests to direct and perform the following tasks:

- The State Bank of Vietnam shall require credit institutions, Vietnam Asset Management Company (VAMC), and relevant entities of the State Bank of Vietnam to be fully aware of the extended period.

- The Ministry of Information and Communications to strengthen their propagation and dissemination to raise awareness of bad debt disposal among all people so that customers and related parties in debt disposal can consciously and proactively implement it.

- Direct and guide media agencies to regularly hold seminars so that credit institutions can exchange information and experience in dealing with bad debts and disposal of collateral, in order to improve their risk management, collateral disposal, and debt recovery capabilities.
 

- The Ministry of Justice continues to direct the General Department of Civil Judgment Enforcement to review outstanding judgment enforcement cases related to collateral disposal for debt recovery and prioritize the complete settlement of these cases to ensure the maximum value of recovered collateral.

- Coordinate with the Supreme People's Court to build a data system related to cases being handled and to allow credit institutions to search and extract data from the system.

- The Ministry of Public Security takes strict actions against those who violate the law by disrupting or interrupting the process of seizing and disposing of collateral to recover debts; ensure that the seizure and disposal of collateral to recover debts takes place smoothly and in accordance with the law.

- The State Bank of Vietnam shall coordinate with concerned ministries and agencies in proposing legislation of regulations on the disposal of bad debts and collateral thereof along with reviewing and amending the Law on Credit Institutions.

- The Ministry of Finance shall develop and formulate regulations on standards for the valuation of credit debts to establish a legal basis for the valuation activities of valuation organizations.