Nâng cao hiệu quả xử lý nợ xấu của công ty quản lý tài sản đối với các tổ chức tín dụng việt nam tt tien anh
STATE BANK OF VIETNAM MINISTRY OF EDUCATION & TRAINING BANKING ACADEMY ***************
NGUYEN THI KIM QUYNH
ENHANCING EFFICIENCY OF HANDLING OF NON-PERFORMING LOAN (NPL) OF THE ASSET MANAGEMENT COMPANY TO VIETNAM CREDIT INSTITUTIONS
SUMMARY OF DOCTORAL THESIS IN ECONOMICS
HANOI - 2020
RESEARCH WORKS ARE COMPLETED AT BANKING ACADEMY
The dissertation is defended in front of the PhD Council at the grassroots doctoral thesis at 14:00 on June 1, 2020 at the Banking Academy.
HA NOI – 2020
1 INTRODUCTION 1. The urgency of the topic VAMC was established with great attention and support from the State Bank, the Government and ministries, agencies but still faces many difficulties and obstacles such as mechanisms, policies and regulations; the law is not complete; operating capital is limited; Vietnam has not really formed a debt trading market; ... This is also the main reason making debts that VAMC collected(sao khoản nợ lại thu mua), although quite large, (con số xử lý) are still modest. Stemming from the above reasons, the author chooses the topic ‘Enhance the efficiency of handling NPLs of the Asset Management Company to Vietnamese credit institutions". 2. Research objectives of the thesis 2.1 General research objectives Assessing the effectiveness of VAMC's NPL resolution to Vietnamese credit institutions and proposing solutions to improve the efficiency of handling NPLs for VAMC. 2.2 Specific research objectives - Firstly, Systematizing the theoretical issues of NPLs, NPLshandling of credit institutions and the effectiveness of NPL handling of Asset Management Company. Clarifying the implication of NPL handling; factors affecting the efficiency of handling NPLs; - Secondly, Studying the experiences of other countries in dealing with NPLsthrough the Asset Management Company and drawing lessons for Vietnam; - Thirdly, Assessing the status of NPL handling of VAMC in the period of 2013-2019, building a model of factors affecting VAMC's NPL solutionresults. - Fourthly, Proposing appropriate solutions for VAMC to improve the efficiency of handling NPLs. 2.3 Research questions Firstly: What is the effective handling of NPLs of the Asset Management Company? What criteria to evaluate the effectiveness of of handling of NPLs of the Asset Management Company? What factors affect the effectiveness of handling of NPLs of the AssetManagement Company? Secondly: How is the actual situation of VAMC's NPL handling period 2013 - 2019? How is the impact of factors on the effectiveness of VAMC's NPL handling period 2013-2019? Thirdly: What is the solution to improve the efficiency of VAMC's NPL handling? In order to implement such solutions, what support does VAMC need from the concerned agencies?
2 3. Research subject and scope 3.1 Research subjects The thesis studied the effectiveness of dealing with NPLs of the Asset Management Company with respect to Vietnamese credit institutions. 3.2 Research scope - Regarding the content: The dissertation researches the effectiveness of dealing with bad debts of the Asset Management Company with respect to Vietnamese credit institutions. - Research period: From 2013-2019. 4. Research method The thesis uses a combination of qualitative research methods and quantitative methods 5. New contributions of the thesis 5.1 Theoretical contributions Firstly, the thesis has systematized the basic issues of NPLs, the effectiveness of handling NPLs of the Asset Management Company. Second, The thesis has studied the experience of handling NPLs through the Asset Management Companies of several countries in the World. From there, draw valuable lessons for VAMC in dealing with NPLs. Third, the thesis has built a quantitative research model with 10 factors affecting the effectiveness of VAMC's NPL handling. The research results show the different influence level of factors on the effectiveness of VAMC's NPL handling that previous studies have not been verified. 5.2 Practical contributions Firstly, the thesis has analyzed in detail the effectiveness of VAMC's NPL performance in the period of 2013-2019. Especially, by collecting information through survey questionnaires, the thesis has evaluated and analyzed the factors affecting VAMC's NPL performance. Second, propose a number of solutions and recommendations to improve the effectiveness of VAMC's handling of NPLs. The solutions and recommendations have somewhat followed the theoretical analysis and practical assessment of the effectiveness of VAMC's NPL handling. 6. The structure of the thesis In addition to the introduction, the list of references and appendices and layout of the thesis is divided into 5 chapters, tables, figures and graphs as follows: Chapter 1: Overview of research on the topic Chapter 2: Basic theory of the effectiveness of the NPL Management Company. Chapter 3: Actual situation of solving NPLs of VAMC. Chapter 4: Solutions to improve the efficiency of handling NPLs for VAMC.
CHAPTER I OVERVIEW OF RESEARCH ON THE TOPIC 1.1. OVERVIEW OF FOREIGN RESEARCH WORKS 1.1.1. There is no single or optimal definition of NPL in previous studies. 1.1.2. All studies have come to the unanimous consequence of the NPL. 1.1.3 Many studies have pointed out the causes of NPLs arising from both the macro and the banks. 1.1.4 Previous studies have shown that in order to deal with NPLs, it is necessary to apply a variety of debt handling measures. 1.1.5 Establishing a Asset Management Company to handle debts is necessary, the effectiveness of debt management of the Asset Management Company depends on many factors. 1.2. OVERVIEW OF DOMESTIC RESEARCH WORKS 1.2.1. The cause of arising NPLs comes from both objective and subjective reasons from the credit institution itself 1.2.2. Studies have pointed out the limitations of VAMC's NPL handling and proposed solutions to improve the effectiveness of VAMC's NPL handling. 1.3. RESEARCH GAPS About theoretical research. Previous studies have provided a theoretical basis for the effectiveness of of VAMC's NPL handling, but has not been systematic and updated recently, especially in the period of 2013- 2019. About practical research Firstly, there is no scientific work to comprehensively study the NPLhandling activities of VAMC, especially in the period from 2013-2019. Secondly, from different research perspectives, the authors have previously analyzed a few factors affecting VAMC's performance without a comprehensive analysis and evaluation of influencing factors, the level of influence of Factors to the effectiveness of VAMC's handling of NPLs. The author has presented comprehensively the factors affecting VAMC's bad debt handling activities, built a model to assess the impact of each factor, so that VAMC could have a base to build an evaluation model influence level of each factor, from which there are suitable solutions. Thirdly, in order to offer a solution to improve the NPL handling efficiency of the Asset Management Company, it must have a comprehensive evaluation in a certain period.Some studies on VAMC are only conducted for a short period of time like a year or two whenVAMC is put into operation. Therefore, previous studies have not had a comprehensive and specific view,
4 so the proposed solutions may no longer be suitable for the current operation of VAMC.
5 CHAPTER 2: BASIC THEORY ABOUT THE EFFECTIVENESS OF HANDLING NPL OF THE COMPANYASSET MANAGEMENT 2.1. BASIC THEORY OF NPL 2.1.1. The concept of NPL According to the author, the bad debt must be approached and assessed at the repayment ability of the customer. This means that a loan may be in due or overdue, if the lender (credit institution) assesses that the customer has signs of default or suspects repayment, it can be classified as NPL. 2.1.2. The cause of NPL a) Objective reasons From customers Losses in business activities of customers. Customer ethics. From the environment Regulatory environment. Some credit programs under the Government's design are not reasonable. Natural environment such as natural disasters, floods, fires, crop failures, epidemics. Economic environment b) Subjective causes Strategy and Risk appetile Credit policies and processes are weak, inconsistent and professional. The organization of internal inspection and control was lax. Staff quality is low. Lack of supervision and risk management after lending 2.1.3.Indicators for measuring NPLs - Scale and structure of NPLs. - NPL ratio = total NPLs / total outstanding debt. - NPL ratio compared to equity = total NPL/ total equity. - NPL ratioto the contingency reserve fund = total NPL / the loss fund balance -The ratio of non-performing loans to the total value of collaterals = total nonperforming loans / the total value of collaterals. - NPL ratio = ratio of total debt and off-balance sheet commitments from group 3 to group 5 against total debt and off-balance sheet commitments from group 1 to group 5. + Moodys’: ≤ 2%;
6 + FDIC: assess asset quality by 5 levels with increasing risk level: level 1 is the best asset level, the risk level is very low, not worrying while level 5 reflects the worst asset level , have the highest risk to financial institutions (FDIC, 1997); + AIA CAMELS: ≤ 1% (AIA, 1996); + Viet Nam: ≤ 3%. 2.2.THE EFFICIENCY OF MANAGEMENT COMPANY
2.2.1.Asset management company 18.104.22.168.Asset Management Company concept Asset Management Company, abbreviated to AMC, or Asset Management Company, is a type of debt management and asset exploitation company. In each country, depending on economic conditions and development policies of each country, the debt management and asset exploitation company has its own names, characteristics, rights and obligations. However, the debt management and asset exploitation company can be considered as a special-purpose institution with special responsibilities and power in performing the function of buying, selling and managing doubtful debts from the banking system and handle those debts optimally. 22.214.171.124. Types of Property Management Company There are two types of Asset Management Companies: State Asset Management Company and Private Asset Management Company, namely: 126.96.36.199 Characteristics of the Asset Management Company Characteristics of the Asset Management representativeness, independence and effectiveness.
188.8.131.52 Functions and duties of the Asset Management Company a) Purchase of bad debts: Buy debt at the book value of the debt; Buy debt at market value b) Tasks of handling bad debts after the purchase Dealing with debts: Debt sale; Directly manage debts and restructure debts through converting debts into contributed capital; Authorize another bank or other organization to manage and handle the debt; Securitizing bad debt About handling collateral of debt: Selling collateral; Invest, repair, upgrade and lease properties; Other duties such as consulting, brokerage for debt and asset trading; Financial investment, capital contribution, stock purchase; Guarantee for customers with bad debts to borrow money at banks; Joint venture, cooperation to manage and handle assets;auction of debt/asset of debt.
7 2.2.2.Effectiveness of handling NPLs of the Asset Management Company 184.108.40.206.The concept of effectiveness of handling NPLs of the Asset Management Company Considering AMC's handling of bad debts, AMC's bad debt handling efficiency is the relationship between AMC's own debt settlement results and VAMC's expenses, and AMC's NPL handling efficiency is considered between the efficiency of AMC's NPL handling and the whole sector's NPL handling efficiency. 220.127.116.11.The criteria for evaluating the effectiveness of handling NPLs of the Asset Management Company a) System of quantitative criteria Target 1: Ratio of AMC’s NPLs (original balance of balance sheet) purchased from credit institutions compared to total NPL balance of credit institutions. Target 2: The ratio of NPLs handled by AMC to the total NPLs handled by credit institutions. Target 3:AMC's NPL recovery rateto purchased NPLs. Target 4: Proportion of outstanding loans, debt restructured customers / total NPLs in the balance sheet, purchased AMC customers of credit institutions. Target 5: Proportion of outstanding loans recovered from collaterals /total recovered outstanding debts. Target 6: The proportion of NPL handling methods to total handled NPLs Target 7: Capital turnover for debt settlement b) System of qualitative criteria The suitability and spread of AMC's NPL handling results Diversity and suitability of debt settlement methods Attractive level of parties involved in debt settlement (buyers, sellers, brokers, the support of the authorities 18.104.22.168.Factors affecting the efficiency of handling of NPLs of the Asset Management Company a) Group of subjective factors First: Model and organizational structure of AMC. Second: Functions and duties of AMC. Third: Capital capacity of AMC. Fourth: Human resources of AMC Fifth: Information technology system. b) Objective factor group First, the development of the NPL trading market.
8 Second: The system of legal documents related to NPL handling. Third: Viewpoints, cooperation of debt selling credit institutions. Fourth: The support of the authorities. Fifth: The operation of debt trading companies. 2.3 EXPERIENCE WITH DEBT HANDLING THROUGH AMC OF SOME COUNTRIES AND LESSONS FOR VIETNAM 2.3.1 Background of birth of AMCs 22.214.171.124 AMC Korea (KAMCO) was established in 1997, due to a reorganization from the Asset Management Company of the Korea Development Bank (KDB). 126.96.36.199
Four Chinese AMCs were established in 1999 amid rising NPLs due to a centrally planned economic mechanism.
With the entry of Deposit Insurance, Japan established Debt Collection and Recovery Agency - RCC, Industrial Reconstruction Agency - IRCJ to handle
NPLs. One of the three solutions to solving NPLs of Malaysia is to set up the national AMC - Danaharta
2.3.2 Ownership of AMCs 188.8.131.52 AMC Korea - KAMCO is a non-bank financial institution with state ownership of over 50% 184.108.40.206 Four Chinese AMCs are owned by four Chinese state-owned commercial banks 220.127.116.11 The Japanese AMCs are owned by Deposit Insurance 18.104.22.168
Danaharta - AMC Malaysia is wholly owned by the state
2.3.1 Legal system that operates AMC 22.214.171.124 The Malaysian Act 587 gives Danaharta a lot of power in dealing with NPLs 126.96.36.199 If the Malaysian Act 587 gives Danaharta the power to buy debt and manage
unprofitable companies, the Hamco Kamco act gives Kamco the powers of debt buying and debt settlement (securitization) debts and property seizures to handle debts ...) To create a legal framework for the handling of NPLs Japan has amended a number of relevant laws China lacks a unified legal system for AMCs, with too many discrete legal instruments governing the activities of AMC
2.3.4 Effective handling of NPLs of AMCs 188.8.131.52 In general, Kamco was effective, the NPL dropped sharply to 2.3% in 2002. After 5 years of losses, banks started making profits from 2001 and grew rapidly from 2002 and stable development so far.
With the discrete legal system, the Chinese AMC did not reach the goal as
expected, only dealing with the cash recovery rate of 21%. AMC of Japan has successfully dealt with NPLs, especially in business
reconstruction With the recovery rate of over 58%, the efficiency of dealing with NPLs of Danaharta - Malaysia is worth other countries.
HANDLING 3.2.1.The complete legal system is the basis for hastening and effectively handling AMC's NPLs 3.2.2.The AMCs must be empowered strong enough 3.2.3.If want to handle quickly and effectively, priority must be given to dealing with real money 3.2.4.Not only handling NPLs quickly, but also AMCs need to improve their role in business reconstruction activities 3.2.5.Securing debt is also a good solution to improve NPL handling for AMC 3.2.6.In addition to conventional debt handling, the handling of assets / liabilities in batches will reduce costs and time, contributing to improving the efficiency of handling bad debts.
10 CHAPTER 3: CURRENT SITUATION OF THE EFFECTIVENESS OF VAMC’s NPL HANGDLING 3.1. CURRENT SITUATION OF NPL AND HANDLING OF NPL OF VIETNAM CREDIT INSTITUTIONS 3.1.1.Actual situation of NPLs of credit institutions Table 3.1: Non-performing loans of credit institutions in the period 2013-2019 Unit: VND billion, % No Criteria 1
143.550 186.894 118.493 115.541 163.141 159.733 Source: State Bank Annual Report 2013-2019
3.2. CURRENT SITUATION OF THE EFFECTIVENESS OF VAMC'S NPL HANDLING 3.2.1.Overview of VAMC 184.108.40.206Background of VAMC’s establishment In the context of the global economic downturn period 2008 - 2012, along with the internal weakness accumulated over many years, Vietnam's economy began to decline, macroeconomic appeared many uncertain factors. , high inflation rate, economic growth rate fell to a low level. The State Bank has formulated and submitted to the Politburo and the Government for approval and approved by the Prime Minister the Project "Dealing with
11 NPLs of the system of credit institutions" and the Project "Establishing the Management Company". management of Vietnamese credit institutions ”in Decision No. 843 / QD-TTg May 31, 2013. 220.127.116.11VAMC development history As of December 31, 2019, VAMC has been in operation for more than 6 years. 18.104.22.168Organize the structure, principles and operational areas of VAMC a) Organizational structure VAMC is 174 people, including 09 managerial officers, 31 senior management officers and the Director / Deputy Director of the Branch and 134 officials and employees. Currently, VAMC is headquartered in Hanoi and has one branch in Ho Chi Minh. b) Principles and areas of operation of VAMC Operating principles Get revenue to cover expenses for non-profit purposes; Publicity and transparency in activities of purchasing and handling NPLs; Limiting risks and costs in dealing with NPLs. Areas of operation Buying bad debts of credit institutions; Debt recovery, debt collection and handling, debt selling, collaterals; Debt restructuring, adjustment of debt repayment conditions, conversion of debts into contributed capital and equity of borrowers; Investing, repairing, upgrading, exploiting, using and leasing collaterals which have been collected by VAMC; Managing bad debts bought, inspected and supervised collaterals related to bad debts, including documents and records related to bad debts and loan security; Counseling, brokerage for buying and selling debts and assets; Financial investment, capital contribution, stock purchase; Organizing property auctions; Guarantee to organizations, businesses and individuals borrowing capital from credit institutions; Other activities in accordance with the functions and duties of VAMC after being permitted by the Governor of the State Bank. 3.2.2.Realsituation of the effectiveness of VAMC's NPL handling 22.214.171.124 .Real Situation of the legal framework to operate VAMC activities a) General legal framework for VAMC activities b) Legal framework for VAMC's handling of NPLs 126.96.36.199 .Actual situation of the effecitiveness of VAMC’s NPL handling a) Overview of VAMC's tasks VAMC has just implemented 6/10 tasks assigned in Decree No. 53/2013 / ND-CP. b) Debt purchase results by special bond
12 Table 3.3: Debt purchase results by special bonds 2013-2019
Number of customers
The amount of NPLs
2019 Accumulated to31/12/2019
balance of balance sheet
35.563 89.941 107.644 42.183 32.601 30.917 20.544
30.926 75.812 99.143 40.035 31.839 29.812 19.846
(VND billion) 5
Purchase price (billion dong)
Source: Report of VAMC's activities for the years 2013-2019 Classification of debts bought by special bonds Table 3.4: Classification of NPLs which VAMC purchased with special bonds based on the type of Credit Institutions Unit: VND billion Joint stock commercial bank
2 3 4 5
2014 2015 2016 2017
13 6 7
Source: Author compiled from VAMC software Table 3.5: Classification of NPLs VAMC purchased by special bonds according to the Plan of the period 2013-2019 Unit: VND billion No 1 2
Source: Report of VAMC's activities for the years 2013-2019 d) Criteria 4: Table 3.13: Percentage of outstanding loans, restructured customers / total NPLs in the balance sheet, purchased VAMC customers of commercial banks. Unit: VND billion No
Criteria Total principal balance of NPLs on the balance sheet which is restructured by VAMC Total principal balance of NPLs on the balance sheet NPLs restructuring ratio
Source: Report ofVAMC’s activities for the year 2013-2019 e) Criteria 5: Table 3.14: Percentage of outstanding NPLs recovered from handling of collaterals on
18 total outstanding NPLs recovery Unit:VND billion No 1
Criteria Returns handling collaterals
Source: Report ofVAMC’s activities for the year 2013-2019 f) Target 6: Table 3.15: Proportion of debt settlement methods to total handled NPL Unit: VND billion No
Proportion of recovery by each method 2013
Source: Report of VAMC's activities for the years 2013-2019 g) Target 7: Table 3.16: VAMC's market capitalization cycle Unit: VND billion Result of debt purchase (VND billion)
19 188.8.131.52Building a research model a) Official scale b) Research models c) Develop research hypotheses 184.108.40.206Design scales, survey tables 220.127.116.11Assess the reliability of the scale by Cronbach's Alpha coefficient 18.104.22.168EFA discovery factor analysis a) EFA discovery factor analysis for the independent variable b) EFA analysis for the dependent variable Table 3.17: KMO test for dependent variables KMO and Bartlett’s Test KMO value (Kaiser-Meyer-Olkin of Sampling Adequacy) Bartlett’s statistical Approx, Chi-Square quantities (Bartlett’s Test Df of Sphericity) Sig,
0,705 5689.626 1035 .000
(Source: SPSS 20.0 output) c) Rotation matrix of factors 22.214.171.124 Linear regression analysis Model running results: VAMC's NPL handling efficiency = 2,981+ 0,139 Functions and duties of VAMC + 0,136 VAMC's capital capacity + 0,156 VAMC's personnel + 0.222 VAMC's technology +(- 0.263 Development of debt trading market) 126.96.36.199 Analysis of quantitative research results 3.2.3. Assessing the effectiveness of VAMC's handling of NPLs in the period 2013-2019 188.8.131.52. Result Firstly, VAMC has shown its mission role in dealing with NPLs, VAMC has contributed to bringing NPLs of the whole CI system to below 3% Secondly, the handling of NPLs through VAMC is a tool to help the State Bank identify and transact NPLs Thirdly, the handling of NPLs through VAMC in the period of 2013-2019 is consistent with Vietnam's economic and political conditions, spreading the results of handling NPLs. Fourthly, credit institutions have reduced financial pressure, have more capital to increase credit activities, and have more power to handle debts through selling debts to VAMC. Fifthly, customers with NPLs have the opportunity to once again be reviewed by VAMC to review the business situation, reconsider in debt restructuring.
20 184.108.40.206Limitations and causes a) Limitations Firstly, VAMC has not fully implemented 10 assigned tasks under the Government's direction in Decree No. 53/2013 / ND-CP. Secondly, VAMC's debt purchase value according to market value is low, not yet showing the leading role of debt trading market. Thirdly, VAMC has not promoted its role in mobilizing other capital sources to carry out market debt purchase Fourthly, the results of VAMC's special debt collection by VAMC have not shown the efficiency of VAMC's debt resolution. Fifth, VAMC has not shown the effectiveness in debt restructuring and supporting customers b) The causes of the limitations Subjective reasons Firstly, VAMC staff is still lacking, not much experience in dealing with NPLs, especially in supporting corporate finance. Secondly, the current organizational structure model of VAMC will no longer be suitable in the coming time when VAMC fully implements its duties according to Decree No. 53/2013 / ND-CP and implements new operations. Thirdly, the new Risk Management is initially implemented Fourthly, VAMC does not have an information system connecting with credit institutions to update information about NPLs and collaterals of NPLs for debt settlement. Fifthly, the facilities have not met VAMC’s operational requirements Objective reasons from mechanisms and policies related to debt handling Firstly, the legal corridor for trading and dealing with NPLs has been formed but scattered in many different regulations. There is no specific law on dealing with NPLs, and there is no law on debt securitization Secondly, the regulations on seizureof collateral have actively supported the handling of NPLs of VAMC, but there are still problems when implementing. Thirdly, the regulations restricting mortgage registration when receiving additional collaterals are land use right, not encouraging investors to buy VAMC's debt. Fourthly, there has been no policy to attract foreign investors to participate in Vietnam's debt trading market Fifthly, the current law has no specific guidance on the valuation of NPLs, leading to inconsistent implementation and not ensuring transparency and objectivity.
21 Sixthly, there is no legal regulation on the case of land use right registration, the ownership of land-attached assets applies to debt-buying individuals who are not debt purchase and sale organizations under Resolution No. 42/2017 / QH14. Seventhly, debt trading is still limited in transaction models and modes Objective reasons from credit institutions, characteristics of debts and collateral of debts Firstly, NPLs have been generated for a long time and are difficult to recover Secondly, conflicts of interest in the process of buying, selling and handling NPLs between VAMC and credit institutions Thirdly, reporting and updating information were inaccurate, leading to problems in information processing and proposing debt settlement plans Objective reasons from customers Firstly, VAMC is very difficult to implement debt restructuring activities because few customers meet the debt restructuring conditions as prescribed Second, customers do not cooperate, oppose, delayin settling debt
22 CHAPTER 4: SOLUTION TO IMOROVE THE EFFICIENCY OF HANDLING NPLs FOR VAMC 4.1.
EFFICIENCY OF HANDLING NPLs FOR VAMC 4.1.1.Orientations The guidelines and policies of the Party and the State, the regulations of the National Assembly, the Government, and the Prime Minister states clearly that the development orientation of VAMC needs to focus on improving the capacity of VAMC to buy and sell NPLsbased on the market price associated with handling of mortgaged assets, protecting the lawful and legitimate interests of creditors as well asallocating appropriate resources to quickly and completely handlingNPLs. 4.1.2.Thesis Thesis 1: It is necessary to improve the institution and legal framework in dealing with NPLs to promote the role of VAMC as a tool of the Government and the State Bank in the process of handling NPLs. Thesis 2: Strengthening VAMC's ability to handle bad debts in terms of capital, technology and human resources. Thesis 3: Besides dealing with bad debts quickly, it is necessary to promote measures to support enterprises such as debt restructuring or financial support. Thesis 4: Dealing with bad debts must ensure the openness, transparency, safety and development of the State's capital. 220.127.116.11 Objectives Period 2020 - 2025 The total accumulated NPLs purchased until the end of 2020 will be at least VND 330,000 billion; By the end of 2020, completing basically the handling of NPLs purschased with special bonds (excluding NPLs purchased with special bonds by weak credit institutions, which may cause risks to the system).From 2021, VAMC will strengthen the handling of NPLs purchased according to market price, as well as continue to handle NPLs bought by special bonds and bad debts of weak credit institutions, which may cause risks to the system; Establishing and developing the NPLs trading market, where VAMC plays a central role of the market; Fully implement the operations of VAMC according to Decree 53/2013 / ND-CP. 18.104.22.168. Objectives for the period 2026 - 2030 Expand activities such as Debt securitization, Provide debt collection services; Civil judgment execution and property handover orders; Promote financial investment activities, aiming to build VAMC into an institution with a financial intermediary role.
23 4.2. Solutions to improve the efficiency of handling NPLs for VAMC 4.2.1.Solutions group about models, functions and tasks 22.214.171.124.Implement enough duties according to Decree No. 53/2013 / ND-CP and add new tasks 126.96.36.199.Perfecting the model, organizational structure 4.2.2. Group of capital solutions 188.8.131.52 .Increase financial resources for VAMC 184.108.40.206 .Improve the efficiency of other capital mobilization 220.127.116.11 .Effective management of VAMC's capital resources 4.2.3. Group of solutions on risk management capacity 18.104.22.168.Completing the system of processes, internal regulations on NPL trading and handling 22.214.171.124.Establish a risk early warning system 126.96.36.199.Control customers after buying debt 4.2.3. Group of human resource solutions 188.8.131.52 Improve recruitment mechanism and process 184.108.40.206 Train high-quality debt handling staff 220.127.116.11Have appropriate policies for employees 4.2.4.Technology solutions group 4.2.5.Group of other complementary solutions 18.104.22.168.Establishing the Club of NPL trading organizations to establish Association of NPL trading 22.214.171.124. Improve the capacity and role of intermediaries in the market 4.3. SUGGESTIONS AND RECOMMENDATIONS 4.3.1. Recommendations to the National Assembly 126.96.36.199. Develop a law to handle NPLs 188.8.131.52 Develop a Debt Securitization Law 4.3.2 Recommendations to the Government 184.108.40.206 Proposing the National Assembly to promulgate the Law on handling NPLs and the Law on securitization of debts 220.127.116.11 Modify functions and duties of VAMC in Decree No. 53/2013 / ND-CP 18.104.22.168 Approving to increase charter capital for VAMC 4.3.3 Recommendations to the State Bank Firstly, Proposal to promulgate the Law on handling bad debts Secondly, submit to raise charter capital for VAMC Thirdly, submit to amend and supplement Decree No. 53/2013 / ND-CP Fourthly, approve the VAMC Development Strategy for the period of 2019-2025 and orientations to 2030