{"id":12853,"date":"2025-12-29T15:19:38","date_gmt":"2025-12-29T10:19:38","guid":{"rendered":"https:\/\/fpl.kz\/?page_id=12853"},"modified":"2025-12-31T10:26:01","modified_gmt":"2025-12-31T05:26:01","slug":"vietnams-experience-in-npl-resolution","status":"publish","type":"page","link":"https:\/\/fpl.kz\/?page_id=12853&lang=en","title":{"rendered":"VIETNAM\u2019S EXPERIENCE IN NPL RESOLUTION"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"12853\" class=\"elementor elementor-12853\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3c36b54 e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"3c36b54\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c300be1 elementor-widget elementor-widget-heading\" data-id=\"c300be1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">VIETNAM\u2019S EXPERIENCE IN NPL RESOLUTION<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-336097f elementor-widget elementor-widget-heading\" data-id=\"336097f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h6 class=\"elementor-heading-title elementor-size-default\">Updated data and regulatory developments as of 2025.<\/h6>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b70f582 elementor-widget elementor-widget-heading\" data-id=\"b70f582\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Background of VAMC Establishment<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f1ba03f elementor-widget elementor-widget-text-editor\" data-id=\"f1ba03f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Development of the banking system since the 1990s: diversification (state-owned, private, and foreign banks).<\/li><li>First NPL surges after 2008: deterioration in portfolio quality and bankruptcies of major borrowers.<\/li><li>Issues: imperfect legal framework and lack of accounting standardization.<\/li><li>In recent years, a sharp increase in NPLs has been observed (especially in 2023 after revaluation and restructuring).<\/li><li>As of 2024, the systemic NPL level remains above pre-crisis levels.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-093bd2d elementor-widget elementor-widget-heading\" data-id=\"093bd2d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Establishment of VAMC and Its Tools<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-da276cc elementor-widget elementor-widget-text-editor\" data-id=\"da276cc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Established by decision of the State Bank of Vietnam on June 27, 2013; 100% state-owned; initial capital \u2014 500 billion VND.<\/li><li>Main funding sources: charter capital and special bonds.<\/li><li>Mission: acquisition and resolution of NPLs, debt restructuring.<\/li><li>Mechanisms: purchases using special bonds (nominal minus reserves) and market-based acquisitions for active management.<\/li><li>VAMC coordinates judicial recovery, auctions, and restructuring.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ebb5ae elementor-widget elementor-widget-heading\" data-id=\"5ebb5ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Asset Purchase and Management Results (Up to 2019)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-35c4849 elementor-widget elementor-widget-text-editor\" data-id=\"35c4849\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>2013\u20132017: over 26,000 loans (~17,000 borrowers); total debt \u2248 $14 billion, purchase price $12.7 billion.<\/li><li>By end-2019: NPLs with total debt of $16.3 billion were acquired at $14.9 billion; recovery rate ~73.8%.<\/li><li>2017\u20132019 (market-based purchases): NPLs worth $350 million acquired for $357 million; recovery rate 64.6%.<\/li><li>Limitations: most purchases were through bond swaps (technical nature); legal challenges in enforcement.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-136b6d5 elementor-widget elementor-widget-heading\" data-id=\"136b6d5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Performance Indicators and Trends (2021\u20132024)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f08371 elementor-widget elementor-widget-text-editor\" data-id=\"7f08371\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>2023: on-balance NPLs reached 5.9% (September 2023, according to some estimates).<\/li><li>2024: ADB estimated NPLs at ~5.4% (total NPL volume $31.39 billion).<\/li><li>After 2021\u20132022 (official NPLs &lt;2%), 2023\u20132024 saw growth due to restructuring and revaluation of loans.<\/li><li>The State Bank of Vietnam introduced Circular 03\/2024 to improve bad-debt trading regulations.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d7acbdd elementor-widget elementor-widget-heading\" data-id=\"d7acbdd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Regulatory Developments (2024\u20132025)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-840ff8d elementor-widget elementor-widget-text-editor\" data-id=\"840ff8d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>Circular 03\/2024\/TT-NHNN (effective July 1, 2024): updated rules for bad-debt trading and settlements; simplified procedures between VAMC and banks.<\/li><li>Amendments to the Law on Credit Institutions (2024\u20132025) aimed to accelerate enforcement and expand the powers of banks and VAMC.<\/li><li>2025 Initiatives: allowed higher foreign ownership (up to 49% for some banks), revised credit growth limits from 2026 onward.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-205de96 elementor-widget elementor-widget-heading\" data-id=\"205de96\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Limitations and Recommendations<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3714636 elementor-widget elementor-widget-text-editor\" data-id=\"3714636\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h6>Challenges:<\/h6><ul><li>A significant share of NPLs remains on banks\u2019 balance sheets.<\/li><li>Insufficient judicial and administrative support for recoveries.<\/li><li>Weak collateral database.<\/li><li>VAMC still limited in market-based acquisitions.<\/li><\/ul><h6>Recommendations:<\/h6><ol><li>Strengthen the legal framework for easier collateral enforcement.<\/li><li>Develop the distressed asset market and attract private investors.<\/li><li>Improve transparency and data sharing (single collateral registry and NPL database).<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33b956d elementor-widget elementor-widget-heading\" data-id=\"33b956d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Sources and Analytical Base<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e259a8 elementor-widget elementor-widget-text-editor\" data-id=\"4e259a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ol><li>ADB \u2014 Nonperforming Loans Watch in Asia 2025 (NPL estimate for 2024: ~5.4%).<\/li><li>IMF \u2014 Vietnam: 2025 Article IV Consultation (NPL data for 2023\u20132024).<\/li><li>State Bank of Vietnam \u2014 Circular 03\/2024\/TT-NHNN (bad-debt trading regulations).<\/li><li>Amendments to the Law on Credit Institutions (2024\u20132025).<\/li><li>VAMC analytical materials and research (2020\u20132025).<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a578e04 elementor-widget elementor-widget-heading\" data-id=\"a578e04\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Analysis of Vietnam\u2019s NPL Market Dynamics (2019\u20132025)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e7ade10 elementor-widget elementor-widget-text-editor\" data-id=\"e7ade10\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>This analytical overview presents the dynamics of NPL indicators in Vietnam\u2019s banking system from 2019 to 2025, considering macroeconomic trends, regulatory measures, and market data.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cfb7831 elementor-widget elementor-widget-heading\" data-id=\"cfb7831\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">NPL Dynamics (2019\u20132025)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb0031f elementor-widget elementor-widget-text-editor\" data-id=\"eb0031f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>According to data from the State Bank of Vietnam (SBV), as well as CEIC and AMRO estimates, NPL levels showed the following trends:<\/p><p>After falling to a minimum of around 1.5% in 2021, they rose to 4.6\u20134.9% in 2022\u20132023.<\/p><p>In 2024, the figure was about 4.8%, and by 2025, it is estimated at around 3.6%, reflecting gradual sectoral improvement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f24dc8 elementor-widget elementor-widget-heading\" data-id=\"4f24dc8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Dynamics of the NPL indicator in the banking system of Vietnam (2019\u20132025)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-63299ca elementor-widget elementor-widget-image\" data-id=\"63299ca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/fpl.kz\/wp-content\/uploads\/2025\/12\/izobrazhenie_2025-12-31_102054586.png\" data-elementor-open-lightbox=\"yes\" data-elementor-lightbox-title=\"\u0438\u0437\u043e\u0431\u0440\u0430\u0436\u0435\u043d\u0438\u0435_2025-12-31_102054586\" data-e-action-hash=\"#elementor-action%3Aaction%3Dlightbox%26settings%3DeyJpZCI6MTI4NTUsInVybCI6Imh0dHBzOlwvXC9mcGwua3pcL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjVcLzEyXC9pem9icmF6aGVuaWVfMjAyNS0xMi0zMV8xMDIwNTQ1ODYucG5nIn0%3D\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"961\" height=\"520\" src=\"https:\/\/fpl.kz\/wp-content\/uploads\/2025\/12\/izobrazhenie_2025-12-31_102054586.png\" class=\"attachment-large size-large wp-image-12855\" alt=\"\" srcset=\"https:\/\/fpl.kz\/wp-content\/uploads\/2025\/12\/izobrazhenie_2025-12-31_102054586.png 961w, https:\/\/fpl.kz\/wp-content\/uploads\/2025\/12\/izobrazhenie_2025-12-31_102054586-300x162.png 300w, https:\/\/fpl.kz\/wp-content\/uploads\/2025\/12\/izobrazhenie_2025-12-31_102054586-768x416.png 768w\" sizes=\"(max-width: 961px) 100vw, 961px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-818b9b9 elementor-widget elementor-widget-heading\" data-id=\"818b9b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Key Factors Influencing NPL Levels<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dc822ad elementor-widget elementor-widget-text-editor\" data-id=\"dc822ad\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Major drivers of NPL growth and subsequent decline:<\/p><ul><li>Impact of the COVID-19 pandemic, which worsened loan portfolio quality.<\/li><li>Rising debt in construction and real estate sectors.<\/li><li>Revised accounting methodology revealing previously hidden bad assets.<\/li><li>Strengthened regulatory measures and debt restructuring programs.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3f8f8d3 elementor-widget elementor-widget-heading\" data-id=\"3f8f8d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Regulatory Initiatives and Stabilization Measures<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2be6b6a elementor-widget elementor-widget-text-editor\" data-id=\"2be6b6a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ol><li><p><strong><em>Circular 03\/2024\/TT-NHNN (Effective 2024)<\/em><\/strong><\/p><ul><li><em>Updated VAMC\u2019s operational framework and bad-asset trading rules.<\/em><\/li><li><em>VAMC may now only acquire NPLs with recoverable potential or realizable collateral.<\/em><\/li><li><em>Mandatory engagement of valuation firms to determine fair market value before purchase.<\/em><\/li><li><em>A pre-acquisition action plan is required, outlining debt and collateral management strategies.<\/em><\/li><li><em>Collateral can be sold flexibly \u2014 even above or below principal \u2014 if properly documented.<\/em><\/li><li><em>Improved NPL trading procedures and accountability for liquidity and recovery assessments.<\/em><\/li><\/ul><p>Result: Circular 03\/2024 strengthens legal and financial standards for transactions and enhances the quality of bad-debt portfolio management.<\/p><\/li><li><p><strong><em>Amendments to the Law on Credit Institutions (2024\u20132025)<\/em><\/strong><\/p><ul><li><em>Accelerated enforcement and collateral realization procedures.<\/em><\/li><li><em>Credit institutions may now enforce collateral based on contractual terms and borrower notification.<\/em><\/li><li><em>Introduced early intervention and supervision for troubled institutions.<\/em><\/li><li><em>Simplified liquidation and bankruptcy processes for credit institutions.<\/em><\/li><li><em>Set new credit concentration limits (10\u201315% of capital by 2029).<\/em><\/li><li><em>Clarified that income from NPLs cannot include assumed or unverified interest.<\/em><\/li><\/ul><p>Effect: These amendments reinforce the legal foundation for NPL management and reduce systemic risk.<\/p><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-06d9286 elementor-widget elementor-widget-heading\" data-id=\"06d9286\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The State Bank of Vietnam has set an NPL target of below 3% by the end of 2025.<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f0ad0df elementor-widget elementor-widget-text-editor\" data-id=\"f0ad0df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Structure and indicators by sectors (assessment)<\/p><table><tbody><tr><td width=\"192\"><p>Sector<\/p><\/td><td width=\"192\"><p>NPL Level (2025, est. %)<\/p><p>\u00a0<\/p><\/td><td width=\"192\"><p>Recovery rate (<strong>est. <\/strong>\u00a0%)<\/p><\/td><\/tr><tr><td width=\"192\"><p>Commercial Real Estate<\/p><\/td><td width=\"192\"><p>3\u20138<\/p><\/td><td width=\"192\"><p>30\u201360<\/p><\/td><\/tr><tr><td width=\"192\"><p>Residential Development<\/p><\/td><td width=\"192\"><p>4\u201310<\/p><\/td><td width=\"192\"><p>20\u201350<\/p><\/td><\/tr><tr><td width=\"192\"><p>Manufacturing<\/p><\/td><td width=\"192\"><p>1\u20135<\/p><\/td><td width=\"192\"><p>40\u201370<\/p><\/td><\/tr><tr><td width=\"192\"><p>Trade \/ Logistics<\/p><\/td><td width=\"192\"><p>1\u20135<\/p><\/td><td width=\"192\"><p>35\u201365<\/p><\/td><\/tr><tr><td width=\"192\"><p>Tourism \/ Hospitality<\/p><\/td><td width=\"192\"><p>4\u201310<\/p><\/td><td width=\"192\"><p>20\u201345<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a1d9a3 elementor-widget elementor-widget-heading\" data-id=\"3a1d9a3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Market Trends and Conclusions<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-28a9f7d elementor-widget elementor-widget-text-editor\" data-id=\"28a9f7d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The Vietnamese NPL market in 2024\u20132025 is characterized by gradual recovery driven by regulatory actions and banks\u2019 adaptive strategies.<\/p><p>Focus has shifted toward sale and restructuring of distressed assets through VAMC and private platforms.<\/p><p>Enforcement efficiency is improving through a balanced mix of soft and legal approaches, resulting in higher asset recovery ratios.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f503cb elementor-widget elementor-widget-heading\" data-id=\"2f503cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Practical Recommendations<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2869b8d elementor-widget elementor-widget-text-editor\" data-id=\"2869b8d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ol><li>When analyzing NPL portfolios, prioritize the legal clarity of collateral and debt structures.<\/li><li>The most promising investment assets are those with verified collateral and commercial liquidity.<\/li><li>To enhance effectiveness, cooperate with local asset management companies (VAMC, ARCs) and leverage Circular 03\/2024 mechanisms.<\/li><li>Continue monitoring legal and regulatory updates affecting recovery and asset sale procedures.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8763ad8 elementor-widget elementor-widget-heading\" data-id=\"8763ad8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Final Conclusions<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0020ade elementor-widget elementor-widget-text-editor\" data-id=\"0020ade\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Vietnam\u2019s NPL ratio shows a consistent downward trend following the 2023 peak.<\/p><p>The asset market is gradually regaining liquidity, while government measures create favorable conditions for faster resolution of distressed loans.<\/p><p>As Vietnam\u2019s financial sector stabilizes, opportunities emerge for institutional investors to participate in NPL acquisition and restructuring programs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62cd44c elementor-button-warning elementor-widget elementor-widget-button\" data-id=\"62cd44c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/files\/international-exp\/vietnam-exp-en.pdf\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\"> Previously published information<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>VIETNAM\u2019S EXPERIENCE IN NPL RESOLUTION Updated data and regulatory developments as of 2025. Background of VAMC Establishment Development of the banking system since the 1990s: diversification (state-owned, private, and foreign banks). First NPL surges after 2008: deterioration in portfolio quality and bankruptcies of major borrowers. Issues: imperfect legal framework and lack of accounting standardization. In recent years, a sharp increase in NPLs has been observed (especially in 2023 after revaluation and restructuring). As of 2024, the systemic NPL level remains above pre-crisis levels. Establishment of VAMC and Its Tools Established by decision of the State Bank of Vietnam on June 27, 2013; 100% state-owned; initial capital \u2014 500 billion VND. Main funding sources: charter capital and special bonds. Mission: acquisition and resolution of NPLs, debt restructuring. Mechanisms: purchases using special bonds (nominal minus reserves) and market-based acquisitions for active management. VAMC coordinates judicial recovery, auctions, and restructuring. Asset Purchase and Management Results (Up to 2019) 2013\u20132017: over 26,000 loans (~17,000 borrowers); total debt \u2248 $14 billion, purchase price $12.7 billion. By end-2019: NPLs with total debt of $16.3 billion were acquired at $14.9 billion; recovery rate ~73.8%. 2017\u20132019 (market-based purchases): NPLs worth $350 million acquired for $357 million; recovery rate 64.6%. Limitations: most purchases were through bond swaps (technical nature); legal challenges in enforcement. Performance Indicators and Trends (2021\u20132024) 2023: on-balance NPLs reached 5.9% (September 2023, according to some estimates). 2024: ADB estimated NPLs at ~5.4% (total NPL volume $31.39 billion). After 2021\u20132022 (official NPLs &lt;2%), 2023\u20132024 saw growth due to restructuring and revaluation of loans. The State Bank of Vietnam introduced Circular 03\/2024 to improve bad-debt trading regulations. Regulatory Developments (2024\u20132025) Circular 03\/2024\/TT-NHNN (effective July 1, 2024): updated rules for bad-debt trading and settlements; simplified procedures between VAMC and banks. Amendments to the Law on Credit Institutions (2024\u20132025) aimed to accelerate enforcement and expand the powers of banks and VAMC. 2025 Initiatives: allowed higher foreign ownership (up to 49% for some banks), revised credit growth limits from 2026 onward. Limitations and Recommendations Challenges: A significant share of NPLs remains on banks\u2019 balance sheets. Insufficient judicial and administrative support for recoveries. Weak collateral database. VAMC still limited in market-based acquisitions. Recommendations: Strengthen the legal framework for easier collateral enforcement. Develop the distressed asset market and attract private investors. Improve transparency and data sharing (single collateral registry and NPL database). Sources and Analytical Base ADB \u2014 Nonperforming Loans Watch in Asia 2025 (NPL estimate for 2024: ~5.4%). IMF \u2014 Vietnam: 2025 Article IV Consultation (NPL data for 2023\u20132024). State Bank of Vietnam \u2014 Circular 03\/2024\/TT-NHNN (bad-debt trading regulations). Amendments to the Law on Credit Institutions (2024\u20132025). VAMC analytical materials and research (2020\u20132025). Analysis of Vietnam\u2019s NPL Market Dynamics (2019\u20132025) This analytical overview presents the dynamics of NPL indicators in Vietnam\u2019s banking system from 2019 to 2025, considering macroeconomic trends, regulatory measures, and market data. NPL Dynamics (2019\u20132025) According to data from the State Bank of Vietnam (SBV), as well as CEIC and AMRO estimates, NPL levels showed the following trends: After falling to a minimum of around 1.5% in 2021, they rose to 4.6\u20134.9% in 2022\u20132023. In 2024, the figure was about 4.8%, and by 2025, it is estimated at around 3.6%, reflecting gradual sectoral improvement. Dynamics of the NPL indicator in the banking system of Vietnam (2019\u20132025) Key Factors Influencing NPL Levels Major drivers of NPL growth and subsequent decline: Impact of the COVID-19 pandemic, which worsened loan portfolio quality. Rising debt in construction and real estate sectors. Revised accounting methodology revealing previously hidden bad assets. Strengthened regulatory measures and debt restructuring programs. Regulatory Initiatives and Stabilization Measures Circular 03\/2024\/TT-NHNN (Effective 2024) Updated VAMC\u2019s operational framework and bad-asset trading rules. VAMC may now only acquire NPLs with recoverable potential or realizable collateral. Mandatory engagement of valuation firms to determine fair market value before purchase. A pre-acquisition action plan is required, outlining debt and collateral management strategies. Collateral can be sold flexibly \u2014 even above or below principal \u2014 if properly documented. Improved NPL trading procedures and accountability for liquidity and recovery assessments. Result: Circular 03\/2024 strengthens legal and financial standards for transactions and enhances the quality of bad-debt portfolio management. Amendments to the Law on Credit Institutions (2024\u20132025) Accelerated enforcement and collateral realization procedures. Credit institutions may now enforce collateral based on contractual terms and borrower notification. Introduced early intervention and supervision for troubled institutions. Simplified liquidation and bankruptcy processes for credit institutions. Set new credit concentration limits (10\u201315% of capital by 2029). Clarified that income from NPLs cannot include assumed or unverified interest. Effect: These amendments reinforce the legal foundation for NPL management and reduce systemic risk. The State Bank of Vietnam has set an NPL target of below 3% by the end of 2025. Structure and indicators by sectors (assessment) Sector NPL Level (2025, est. %) \u00a0 Recovery rate (est. \u00a0%) Commercial Real Estate 3\u20138 30\u201360 Residential Development 4\u201310 20\u201350 Manufacturing 1\u20135 40\u201370 Trade \/ Logistics 1\u20135 35\u201365 Tourism \/ Hospitality 4\u201310 20\u201345 Market Trends and Conclusions The Vietnamese NPL market in 2024\u20132025 is characterized by gradual recovery driven by regulatory actions and banks\u2019 adaptive strategies. Focus has shifted toward sale and restructuring of distressed assets through VAMC and private platforms. Enforcement efficiency is improving through a balanced mix of soft and legal approaches, resulting in higher asset recovery ratios. Practical Recommendations When analyzing NPL portfolios, prioritize the legal clarity of collateral and debt structures. The most promising investment assets are those with verified collateral and commercial liquidity. To enhance effectiveness, cooperate with local asset management companies (VAMC, ARCs) and leverage Circular 03\/2024 mechanisms. Continue monitoring legal and regulatory updates affecting recovery and asset sale procedures. Final Conclusions Vietnam\u2019s NPL ratio shows a consistent downward trend following the 2023 peak. The asset market is gradually regaining liquidity, while government measures create favorable conditions for faster resolution of distressed loans. As Vietnam\u2019s financial sector stabilizes, opportunities emerge for institutional investors to participate in NPL acquisition and restructuring programs. Previously published information<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"content-type":"","footnotes":""},"class_list":["post-12853","page","type-page","status-publish","hentry"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u041e\u043f\u044b\u0442 \u0412\u044c\u0435\u0442\u043d\u0430\u043c\u0430 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fpl.kz\/?page_id=12853&lang=en\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u041e\u043f\u044b\u0442 \u0412\u044c\u0435\u0442\u043d\u0430\u043c\u0430 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;\" \/>\n<meta property=\"og:description\" content=\"VIETNAM\u2019S EXPERIENCE IN NPL RESOLUTION Updated data and regulatory developments as of 2025. Background of VAMC Establishment Development of the banking system since the 1990s: diversification (state-owned, private, and foreign banks). First NPL surges after 2008: deterioration in portfolio quality and bankruptcies of major borrowers. Issues: imperfect legal framework and lack of accounting standardization. In recent years, a sharp increase in NPLs has been observed (especially in 2023 after revaluation and restructuring). As of 2024, the systemic NPL level remains above pre-crisis levels. Establishment of VAMC and Its Tools Established by decision of the State Bank of Vietnam on June 27, 2013; 100% state-owned; initial capital \u2014 500 billion VND. Main funding sources: charter capital and special bonds. Mission: acquisition and resolution of NPLs, debt restructuring. Mechanisms: purchases using special bonds (nominal minus reserves) and market-based acquisitions for active management. VAMC coordinates judicial recovery, auctions, and restructuring. Asset Purchase and Management Results (Up to 2019) 2013\u20132017: over 26,000 loans (~17,000 borrowers); total debt \u2248 $14 billion, purchase price $12.7 billion. By end-2019: NPLs with total debt of $16.3 billion were acquired at $14.9 billion; recovery rate ~73.8%. 2017\u20132019 (market-based purchases): NPLs worth $350 million acquired for $357 million; recovery rate 64.6%. Limitations: most purchases were through bond swaps (technical nature); legal challenges in enforcement. Performance Indicators and Trends (2021\u20132024) 2023: on-balance NPLs reached 5.9% (September 2023, according to some estimates). 2024: ADB estimated NPLs at ~5.4% (total NPL volume $31.39 billion). After 2021\u20132022 (official NPLs &lt;2%), 2023\u20132024 saw growth due to restructuring and revaluation of loans. The State Bank of Vietnam introduced Circular 03\/2024 to improve bad-debt trading regulations. Regulatory Developments (2024\u20132025) Circular 03\/2024\/TT-NHNN (effective July 1, 2024): updated rules for bad-debt trading and settlements; simplified procedures between VAMC and banks. Amendments to the Law on Credit Institutions (2024\u20132025) aimed to accelerate enforcement and expand the powers of banks and VAMC. 2025 Initiatives: allowed higher foreign ownership (up to 49% for some banks), revised credit growth limits from 2026 onward. Limitations and Recommendations Challenges: A significant share of NPLs remains on banks\u2019 balance sheets. Insufficient judicial and administrative support for recoveries. Weak collateral database. VAMC still limited in market-based acquisitions. Recommendations: Strengthen the legal framework for easier collateral enforcement. Develop the distressed asset market and attract private investors. Improve transparency and data sharing (single collateral registry and NPL database). Sources and Analytical Base ADB \u2014 Nonperforming Loans Watch in Asia 2025 (NPL estimate for 2024: ~5.4%). IMF \u2014 Vietnam: 2025 Article IV Consultation (NPL data for 2023\u20132024). State Bank of Vietnam \u2014 Circular 03\/2024\/TT-NHNN (bad-debt trading regulations). Amendments to the Law on Credit Institutions (2024\u20132025). VAMC analytical materials and research (2020\u20132025). Analysis of Vietnam\u2019s NPL Market Dynamics (2019\u20132025) This analytical overview presents the dynamics of NPL indicators in Vietnam\u2019s banking system from 2019 to 2025, considering macroeconomic trends, regulatory measures, and market data. NPL Dynamics (2019\u20132025) According to data from the State Bank of Vietnam (SBV), as well as CEIC and AMRO estimates, NPL levels showed the following trends: After falling to a minimum of around 1.5% in 2021, they rose to 4.6\u20134.9% in 2022\u20132023. In 2024, the figure was about 4.8%, and by 2025, it is estimated at around 3.6%, reflecting gradual sectoral improvement. Dynamics of the NPL indicator in the banking system of Vietnam (2019\u20132025) Key Factors Influencing NPL Levels Major drivers of NPL growth and subsequent decline: Impact of the COVID-19 pandemic, which worsened loan portfolio quality. Rising debt in construction and real estate sectors. Revised accounting methodology revealing previously hidden bad assets. Strengthened regulatory measures and debt restructuring programs. Regulatory Initiatives and Stabilization Measures Circular 03\/2024\/TT-NHNN (Effective 2024) Updated VAMC\u2019s operational framework and bad-asset trading rules. VAMC may now only acquire NPLs with recoverable potential or realizable collateral. Mandatory engagement of valuation firms to determine fair market value before purchase. A pre-acquisition action plan is required, outlining debt and collateral management strategies. Collateral can be sold flexibly \u2014 even above or below principal \u2014 if properly documented. Improved NPL trading procedures and accountability for liquidity and recovery assessments. Result: Circular 03\/2024 strengthens legal and financial standards for transactions and enhances the quality of bad-debt portfolio management. Amendments to the Law on Credit Institutions (2024\u20132025) Accelerated enforcement and collateral realization procedures. Credit institutions may now enforce collateral based on contractual terms and borrower notification. Introduced early intervention and supervision for troubled institutions. Simplified liquidation and bankruptcy processes for credit institutions. Set new credit concentration limits (10\u201315% of capital by 2029). Clarified that income from NPLs cannot include assumed or unverified interest. Effect: These amendments reinforce the legal foundation for NPL management and reduce systemic risk. The State Bank of Vietnam has set an NPL target of below 3% by the end of 2025. Structure and indicators by sectors (assessment) Sector NPL Level (2025, est. %) \u00a0 Recovery rate (est. \u00a0%) Commercial Real Estate 3\u20138 30\u201360 Residential Development 4\u201310 20\u201350 Manufacturing 1\u20135 40\u201370 Trade \/ Logistics 1\u20135 35\u201365 Tourism \/ Hospitality 4\u201310 20\u201345 Market Trends and Conclusions The Vietnamese NPL market in 2024\u20132025 is characterized by gradual recovery driven by regulatory actions and banks\u2019 adaptive strategies. Focus has shifted toward sale and restructuring of distressed assets through VAMC and private platforms. Enforcement efficiency is improving through a balanced mix of soft and legal approaches, resulting in higher asset recovery ratios. Practical Recommendations When analyzing NPL portfolios, prioritize the legal clarity of collateral and debt structures. The most promising investment assets are those with verified collateral and commercial liquidity. To enhance effectiveness, cooperate with local asset management companies (VAMC, ARCs) and leverage Circular 03\/2024 mechanisms. Continue monitoring legal and regulatory updates affecting recovery and asset sale procedures. Final Conclusions Vietnam\u2019s NPL ratio shows a consistent downward trend following the 2023 peak. The asset market is gradually regaining liquidity, while government measures create favorable conditions for faster resolution of distressed loans. As Vietnam\u2019s financial sector stabilizes, opportunities emerge for institutional investors to participate in NPL acquisition and restructuring programs. 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\u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fpl.kz\/?page_id=12853&lang=en","og_locale":"ru_RU","og_type":"article","og_title":"\u041e\u043f\u044b\u0442 \u0412\u044c\u0435\u0442\u043d\u0430\u043c\u0430 - \u0410\u041e &quot;\u0424\u043e\u043d\u0434 \u043f\u0440\u043e\u0431\u043b\u0435\u043c\u043d\u044b\u0445 \u043a\u0440\u0435\u0434\u0438\u0442\u043e\u0432&quot;","og_description":"VIETNAM\u2019S EXPERIENCE IN NPL RESOLUTION Updated data and regulatory developments as of 2025. Background of VAMC Establishment Development of the banking system since the 1990s: diversification (state-owned, private, and foreign banks). First NPL surges after 2008: deterioration in portfolio quality and bankruptcies of major borrowers. Issues: imperfect legal framework and lack of accounting standardization. In recent years, a sharp increase in NPLs has been observed (especially in 2023 after revaluation and restructuring). As of 2024, the systemic NPL level remains above pre-crisis levels. Establishment of VAMC and Its Tools Established by decision of the State Bank of Vietnam on June 27, 2013; 100% state-owned; initial capital \u2014 500 billion VND. Main funding sources: charter capital and special bonds. Mission: acquisition and resolution of NPLs, debt restructuring. Mechanisms: purchases using special bonds (nominal minus reserves) and market-based acquisitions for active management. VAMC coordinates judicial recovery, auctions, and restructuring. Asset Purchase and Management Results (Up to 2019) 2013\u20132017: over 26,000 loans (~17,000 borrowers); total debt \u2248 $14 billion, purchase price $12.7 billion. By end-2019: NPLs with total debt of $16.3 billion were acquired at $14.9 billion; recovery rate ~73.8%. 2017\u20132019 (market-based purchases): NPLs worth $350 million acquired for $357 million; recovery rate 64.6%. Limitations: most purchases were through bond swaps (technical nature); legal challenges in enforcement. Performance Indicators and Trends (2021\u20132024) 2023: on-balance NPLs reached 5.9% (September 2023, according to some estimates). 2024: ADB estimated NPLs at ~5.4% (total NPL volume $31.39 billion). After 2021\u20132022 (official NPLs &lt;2%), 2023\u20132024 saw growth due to restructuring and revaluation of loans. The State Bank of Vietnam introduced Circular 03\/2024 to improve bad-debt trading regulations. Regulatory Developments (2024\u20132025) Circular 03\/2024\/TT-NHNN (effective July 1, 2024): updated rules for bad-debt trading and settlements; simplified procedures between VAMC and banks. Amendments to the Law on Credit Institutions (2024\u20132025) aimed to accelerate enforcement and expand the powers of banks and VAMC. 2025 Initiatives: allowed higher foreign ownership (up to 49% for some banks), revised credit growth limits from 2026 onward. Limitations and Recommendations Challenges: A significant share of NPLs remains on banks\u2019 balance sheets. Insufficient judicial and administrative support for recoveries. Weak collateral database. VAMC still limited in market-based acquisitions. Recommendations: Strengthen the legal framework for easier collateral enforcement. Develop the distressed asset market and attract private investors. Improve transparency and data sharing (single collateral registry and NPL database). Sources and Analytical Base ADB \u2014 Nonperforming Loans Watch in Asia 2025 (NPL estimate for 2024: ~5.4%). IMF \u2014 Vietnam: 2025 Article IV Consultation (NPL data for 2023\u20132024). State Bank of Vietnam \u2014 Circular 03\/2024\/TT-NHNN (bad-debt trading regulations). Amendments to the Law on Credit Institutions (2024\u20132025). VAMC analytical materials and research (2020\u20132025). Analysis of Vietnam\u2019s NPL Market Dynamics (2019\u20132025) This analytical overview presents the dynamics of NPL indicators in Vietnam\u2019s banking system from 2019 to 2025, considering macroeconomic trends, regulatory measures, and market data. NPL Dynamics (2019\u20132025) According to data from the State Bank of Vietnam (SBV), as well as CEIC and AMRO estimates, NPL levels showed the following trends: After falling to a minimum of around 1.5% in 2021, they rose to 4.6\u20134.9% in 2022\u20132023. In 2024, the figure was about 4.8%, and by 2025, it is estimated at around 3.6%, reflecting gradual sectoral improvement. Dynamics of the NPL indicator in the banking system of Vietnam (2019\u20132025) Key Factors Influencing NPL Levels Major drivers of NPL growth and subsequent decline: Impact of the COVID-19 pandemic, which worsened loan portfolio quality. Rising debt in construction and real estate sectors. Revised accounting methodology revealing previously hidden bad assets. Strengthened regulatory measures and debt restructuring programs. Regulatory Initiatives and Stabilization Measures Circular 03\/2024\/TT-NHNN (Effective 2024) Updated VAMC\u2019s operational framework and bad-asset trading rules. VAMC may now only acquire NPLs with recoverable potential or realizable collateral. Mandatory engagement of valuation firms to determine fair market value before purchase. A pre-acquisition action plan is required, outlining debt and collateral management strategies. Collateral can be sold flexibly \u2014 even above or below principal \u2014 if properly documented. Improved NPL trading procedures and accountability for liquidity and recovery assessments. Result: Circular 03\/2024 strengthens legal and financial standards for transactions and enhances the quality of bad-debt portfolio management. Amendments to the Law on Credit Institutions (2024\u20132025) Accelerated enforcement and collateral realization procedures. Credit institutions may now enforce collateral based on contractual terms and borrower notification. Introduced early intervention and supervision for troubled institutions. Simplified liquidation and bankruptcy processes for credit institutions. Set new credit concentration limits (10\u201315% of capital by 2029). Clarified that income from NPLs cannot include assumed or unverified interest. Effect: These amendments reinforce the legal foundation for NPL management and reduce systemic risk. The State Bank of Vietnam has set an NPL target of below 3% by the end of 2025. Structure and indicators by sectors (assessment) Sector NPL Level (2025, est. %) \u00a0 Recovery rate (est. \u00a0%) Commercial Real Estate 3\u20138 30\u201360 Residential Development 4\u201310 20\u201350 Manufacturing 1\u20135 40\u201370 Trade \/ Logistics 1\u20135 35\u201365 Tourism \/ Hospitality 4\u201310 20\u201345 Market Trends and Conclusions The Vietnamese NPL market in 2024\u20132025 is characterized by gradual recovery driven by regulatory actions and banks\u2019 adaptive strategies. Focus has shifted toward sale and restructuring of distressed assets through VAMC and private platforms. Enforcement efficiency is improving through a balanced mix of soft and legal approaches, resulting in higher asset recovery ratios. Practical Recommendations When analyzing NPL portfolios, prioritize the legal clarity of collateral and debt structures. The most promising investment assets are those with verified collateral and commercial liquidity. To enhance effectiveness, cooperate with local asset management companies (VAMC, ARCs) and leverage Circular 03\/2024 mechanisms. Continue monitoring legal and regulatory updates affecting recovery and asset sale procedures. Final Conclusions Vietnam\u2019s NPL ratio shows a consistent downward trend following the 2023 peak. The asset market is gradually regaining liquidity, while government measures create favorable conditions for faster resolution of distressed loans. As Vietnam\u2019s financial sector stabilizes, opportunities emerge for institutional investors to participate in NPL acquisition and restructuring programs. 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Background of VAMC Establishment Development of the banking system since the 1990s: diversification (state-owned, private, and foreign banks). First NPL surges after 2008: deterioration in portfolio quality and bankruptcies of major borrowers. Issues: imperfect legal framework and lack of accounting standardization. In&hellip;","_links":{"self":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fpl.kz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12853"}],"version-history":[{"count":4,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12853\/revisions"}],"predecessor-version":[{"id":12858,"href":"https:\/\/fpl.kz\/index.php?rest_route=\/wp\/v2\/pages\/12853\/revisions\/12858"}],"wp:attachment":[{"href":"https:\/\/fpl.kz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}