Vietnam establishes state-owned Asset Management Company to resolve bad debt

The State Bank of Vietnam is establishing a specialized Asset Management Company to handle bad debts and promote sustainable credit growth within the economy. Under Decree No. 359/2026/ND-CP, signed by Deputy Prime Minister Nguyen Van Thang, the company will operate as a 100% state-owned single-member limited liability company.

The company will function on a non-profit basis, aiming to cover expenditures through its own earnings while maintaining transparency in debt acquisition and processing. It is tasked with minimizing risks and costs associated with bad debt management.

Borrowers with bad debts sold to the company may still be eligible for credit from credit institutions or foreign bank branches if they present viable business plans or investment projects. The company can purchase bad debts from Vietnamese credit institutions at market value or through special bonds. It is also authorized to purchase bad debts from joint-venture institutions and 100% foreign-owned banks at market prices. The company will be headquartered in Hanoi, with the possibility of establishing branches or representative offices in major cities upon approval from the State Bank of Vietnam. The initial charter capital is set at 5,000 billion Vietnamese Dong.