Solution to strengthen bad debt processing at VAMC

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - VŨ NGỌC MINH SOLUTION TO STRENGTHEN BAD DEBT PROCESSING AT VAMC GIẢI PHÁP TĂNG CƯỜNG XỬ LÝ NỢ XẤU TẠI VAMC LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - VŨ NGỌC MINH SOLUTION TO STRENGTHEN BAD DEBT PROCESSING AT VAMC GIẢI PHÁP TĂNG CƯỜNG XỬ LÝ NỢ XẤU TẠI VAMC Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS TS PHẠM THỊ THANH HÒA HÀ NỘI - 2020 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course The course raises my capacity of administration and management up to the next level I am now very confident in my position of management I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible I woud like to express my great gratitude to my supervisor Pham Thi Thanh Hoa for her useful comments, remarks and engagement during my process of doing this master thesis Sincere thanks are extended to the Faculty of International Training Vietnam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time Lastly, I would like to give my great thanks to my wife, my kids, and my family who always standby me during the past two years and encourages me to keep moving from the beginning of my study SOLUTIONS TO IMPROVE THE MODEL AND ENHANCE THE HANDLING OF BAD DEBTS FOR VAMC Summary of the results The study of solutions to improve the model and enhance the handling of bad debts for VAMC has achieved some research objectives as follows: Firstly, systematize the theoretical basis for bad debts, trading bad debts, focus on presenting the contents and factors affecting bad debt trading activities at AMCs In addition, the study also highlights AMC's experience in handling bad debts in some countries in the world and from that draw experience for AMC in Vietnam Secondly, analyze the status of dealing with bad debts at VAMC for the period of 2016-2018, thereby making comments and assessments of the actual management of bad debt trading at VAMC, indicating the achieved and surviving results as well as the root causes of the problems in trading, handling bad debts at VAMC during the past time Thirdly, based on the results of the situation analysis, the study proposes solutions to enhance the handling of bad debts at VAMC until 2025 The proposed solutions include: Restructuring the organizational structure, improving efficiency results of VAMC; Human resource development; Upgrading information technology infrastructure; Solutions on capital and financial capacity; Solutions to perfect the picture of trading and handling of bad debts of VAMC Applicability in practice In the context that Vietnam does not use budget capital, VAMC has been the most effective and feasible tool to handle bad debts, contributing to solving difficulties for enterprises with debt restructuring and interest rate reduction and exemption, even accessing loans of credit institutions As a newly established institution with many difficulties, the initial results of VAMC have supported to accelerate the handling of bad debts In the next phase, VAMC needs to focus all its efforts on debt settlement (selling debts, selling assets, etc.) and buying debts at market prices for newly arising bad debts, gradually reducing debt purchase by special bonds VAMC operates in a centralized debt management model Finding solutions to strengthen the management of bad debt trading at VAMC is a practical requirement Further research orientations If there are further research conditions, the author will focus on further research on debt settlement procedures of VAMC, combined with the collection and aggregation of additional VAMC activity data to expand the research results INDEX INDEX i LIST OF ACRONYMS iv TABLES v CHART AND IMAGES vi INTRODUCTION 1 Urgency of the research Research overview Research objectives Research subject and scope Research methodolody 6 Research structure CHAPTER 1: BASIC ISSUES ON BAD DEBT AND BAD DEBT TRADING, HANDLING ACTIVITIES OF ASSET MANAGEMENT COMPANIES 1.1 Overview of bad debts in the commercial banks 1.1.1 Definition of bad debts 1.1.2 Bad debt characteristics 1.1.3 Causes of Bad debts 11 1.1.4 Impacts of Bad debts 12 1.2 Basic issues on bad debt purchasing, selling handling of AMCs 13 1.2.1 Definition of bad debt purchasing and selling 13 1.2.2 Significance of bad debt purchasing and selling 14 1.2.3 The main contents of purchasing, selling and handling Bad debts at AMCs 16 1.2.4 Factors affecting bad debt trading 21 1.3 International experience and lessons for Vietnam 23 1.3.1 Experience of some countries in the world 23 1.3.2 Lessons learned for Vietnam in trading, dealing with bad debts 25 i CHAPTER II: CURRENT SITUATION OF THE MODEL AND MECHANISM OF TRADING AND HANDLING OF BAD DEBT IN VAMC 28 2.1 Overview of VAMC's characteristics, models and performance 28 2.1.1 Background of foundation and development of VAMC 28 2.1.2 Main activities and right of VAMC 29 2.1.3 VAMC's responsibilities and roles 30 2.2 Current situation of VAMC's model, activities of buying, selling and handling bad debts 31 2.2.1 Situation of legal framework, organizational model and structure of VAM 31 2.2.2 Actual situation of trading, dealing with bad debts at VAMC 39 2.2.3 Results of trading, dealing with bad debts of VAMC 52 2.3 Assess the status of the model and mechanism of trading and handling Bad debts of VAMC 60 2.3.1 Achievements 60 2.3.2 Limitations 61 2.3.3 Cause of the limitation 62 3.1 Orientation and operational goals of VAMC to 2025 and vision to 2030 68 3.1.1 Operational orientation of VAM 68 3.1.2 Operational objectives of VAMC 70 3.1.3 Requirements in operation management of VAMC 72 3.2 Solutions to strengthen trading, handling bad debts for VAMC 75 3.2.1 Restructuring the organizational structure, improving the operational efficiency of VAMC 75 3.2.2 Human resource development 77 3.2.3 Upgrade information technology infrastructure 79 3.2.4 Solutions on capital and financial capacity 80 3.2.5 Solution to complete the picture of trading and handling bad debts of VAMC 81 ii 3.2.6 Creating a centralized bad debt trading market in which VAMC plays a central role of the market 83 3.3 Proposals 84 3.3.1 Proposals to the National Assembly 84 3.3.2 Proposals to the National Assembly 85 3.3.3 Proposals to the Ministries/Branch Departments 86 CONCLUSION 89 REFERENCES 90 iii LIST OF ACRONYMS VAMC Viet Nam asset management company GDP Gross domestic product of goods and services EU European Union AEG The Advisory Expert Group WTO World Trade Organization iv - Change from a distributed information processing model to a centralized information processing model In a centralized information system, all available information about customers will make the analysis better, including customer analysis, security asset analysis, from which risk management can be ensured Develop a data storage system to serve the classification of customer portfolios In order to serve this task well, VAMC's database must meet the following criteria: + Amount of data to be collected: VAMC must collect, maintain and analyze important information related to customer ratings and the rating of purchased bad debts during the proposed purchased bad debt management period of the customer In addition to general information, VAMC also needs to collect qualitative and quantitative data that reflect its business performance as well as its ability to repay debts: (i) qualitative factors, including quality of cash flow, effectiveness and reliability of management activities, strategic orientation, industry vision; (ii) quantitative factors such as asset size and revenue, asset efficiency ratios, equity efficiency, profitability, cash flow, liquidity and other factors + Regarding data quality, VAMC needs an appropriate data management policy and program to ensure that the database meets the criteria in a timely, accurate, complete, uniform and accessible manner 3.2.4 Solutions on capital and financial capacity The newly issued Decree no 34/2015/ND-CP allows VAMC to increase its charter capital to VND 2,000 billion However, with the new charter capital of VND 2,000 billion, VAMC's market debt purchase will be limited in the value and volume of bad debts that can be purchased Therefore, VAMC proposed that the State Bank increase its charter capital by VND 10,000 billion by 2020 to create conditions for debt purchase plans at market prices Thus, VAMC has the financial potential to buy debts at market prices or contribute capital to restructure debts In order to increase capital, improve financial capacity, VAMC can take the following measures: VAMC issues corporate bonds to the CIs that sell debt for 5-10 years (depending on the CI and the special bond term of the debt) at low interest rates 80 (VAMC and the CI agree) These corporate bonds not need government guarantee and therefore not affect public debt; Borrow capital from domestic and international organizations; Cooperate with domestic and foreign investors to handle bad debts in the direction of restructuring businesses and trading businesses 3.2.5 Solution to complete the picture of trading and handling bad debts of VAMC Firstly, complete debt purchase with special bonds, purchase bad debt at market value Speed up the search and exploitation of the list of debts purchased by special bonds, debts that are being accounted internally and off-balance-sheet at credit institutions, deploying to work with credit institutions and partners, selecting possible debts Examination in handling after purchase to have a basis to propose VAMC to purchase debts at market prices - VAMC gives priority to purchasing high-value debts to minimize the costs of monitoring, management and supervision of borrowers and collaterals for VAMC; Priority is given to converting bad debts purchased with special bonds to the market value according to regulations - VAMC can choose to buy each bad debt or buy in batches to speed up the process of trading and handling bad debt through VAMC - Submit to the State Bank to propose the Government to allow VAMC to continue purchasing bad debts with special bonds to support credit institutions in handling bad debts, ensuring safety and security of the banking system, contributing to stabilizing Monetary and financial assessment (According to aggregated data from credit institutions, the estimated total bad debt purchased by special bonds in 2019 was VND 60,000 billion, registered to sell debt to VAMC in 2020, 2021 on average per year of about 6,000 billion dong) - VAMC needs to complete the process of purchasing bad debts at market value in the direction of discussing with CIs to determine the demand for selling debt at market value; Conducting market research, assessing the need to purchase debts and assets of domestic and foreign investors to determine the list of potential 81 debts; Meeting with investors wishing to discuss and introduce the portfolio of debts and special assets; Performing debt valuation, special assets The valuation will be done by VAMC itself or hire organizations that have enough conditions and capacity to perform; Based on the results of the debt valuation, special assets and equivalent assets (if any) on the market, VAMC negotiates the debt trading price and implements the bad debt trading plans and procedures according to the regulations Second, complete the handling of purchased bad debts Organize the management, supervision, push the recovery of purchased debts, authorize credit institutions to manage and handle debts in accordance with the law Conduct a review, classification and assessment of the status of bad debts, collaterals, customer assessment to develop and apply appropriate debt handling measures; Classify bad debts purchased to apply appropriate measures to handle debts according to the following criteria: ability to recover debts from borrowers and development prospects of borrowers; nature of the collateral of the debt; ability to sell and handle debts and collateral of debts; Implementing or cooperating with other investors to invest and complete projects and assets in order to create sources of debt payment for the two parties to jointly exploit and recover debts and capital invested in projects and assets Cooperate with credit institutions, customers implement the agreed bad debt handling plan; regularly review and re-evaluate the handling results and problems in order to have solutions to effectively solve and recover debts according to the assigned plans; Strengthen inspection and supervision for borrowers and collaterals of purchased debts Promote debt restructuring activities to create opportunities for customers with a spirit of cooperation, goodwill repayment, prospects for recovery, opportunities to restore production and business activities, and arrange capital for repayment line On the other hand, continue to promote the seizure of collaterals under Resolution No 42 for customers, the guarantor does not cooperate, deliberately opposes to handle debt recovery 82 Implement debt, collateral auction, of purchased debts; hire debt assessment organizations, collaterals; at the same time, organize training of officials on debt valuation, collaterals, debt auction, collaterals according to the provisions of law Coordinate with credit institutions, police agencies, local authorities in handling collaterals to recover debts; coordinate with the Central Civil Judgment Enforcement - the Ministry of Justice, the Local Civil Judgment Enforcement, credit institutions in solving difficulties, shortening the time of judgment execution; Coordinate with competent agencies, organizations and borrowers to complete legal procedures and documents related to bad debts and collaterals Cooperate with Vietnam Debt Trading Company (DATC), State Capital Investment Corporation (SCIC), Debt Management and Asset Management Company directly under commercial banks trade, investment funds in bow trading, forming and developing joint ventures and associates in debt settlement 3.2.6 Creating a centralized bad debt trading market in which VAMC plays a central role of the market VAMC needs to build an information technology system connecting with CIC, AMCs and credit institutions, to meet the requirements of classification and assessment of the ability to handle and recover debts from bad debts and collaterals of bad debts VAMC has purchased, serving the management, monitoring, handling of debts and meeting the information needs for interested investors Promptly publicize activities of trading and dealing with bad debts, including announcing the list of collaterals under management of VAMC, posting property/debt auction notices, posting collateral notices on the VAMC news portal (www.sbvamc.vn) Establishment of the Association of bad debt trading: The Association of bad debt trading will act as an intermediary, promptly reflecting the difficulties and problems of its member organizations related to the trading, handling of bad debt and collaterals The Association also plays a pioneering role in the effective implementation of policies and guidelines of the Government and State Administration in bad debt trading activities, and is the focal point for receiving and 83 directly proposing and proposing to the State management agencies in order to promptly remove obstacles on mechanisms and policies, ensuring that the mechanisms and policies of the management agencies come in reality, showing the effectiveness In addition, the Association is also a meeting place, a forum for exchanging information and experiences, enhancing skills and knowledge training for member organizations; is a focal point to work, mobilize investment from domestic and foreign units, enhance investment resources, increase liquidity for the debt trading market In addition, the Association of bad debt trading plays an important role in regulating the activities of the member organizations, adjusting activities among the member organizations through the Association's charter, from which avoiding unhealthy competition in the market 3.3 Proposals 3.3.1 Proposals to the National Assembly The National Assembly supplements the relevant contents of the Land Law in a way that allows foreign investors to buy bad debts secured with mortgaged assets as land use rights This provision will support the trading of bad debts with mortgaged land use rights as well as a basis for foreign investors to become one of the effective partners in the market of trading bad debts in Vietnam The National Assembly reviewed and supplemented regulations on the auction of bad debts and collaterals of the bad debts into the Law on Property Auction to accelerate the process of dealing with bad debts, ensuring transparency and property ownership of the owners The securitization of bad debts is a new technical measure suitable to the general development environment that Vietnam needs to apply and study to promptly stipulate the law issues, creating a legal framework for the implementation of the application of securitization technology in Vietnam in the near future The National Assembly reviewed and supplemented the law on dealing with bad debts on the basis of Resolution No 42 in 2015, specifying exemption and reduction of interests and fees; seizing and handling security assets; using debt 84 settlement services of AMCs; selling debt sold to VAMC at the market value Clearly stipulating the sale of security assets must comply with the principle of publicity, transparency and lawfulness 3.3.2 Proposals to the Goverment The Government needs to improve the effectiveness of the state management of bank debt management, consolidate confidence in credit activities through strengthening the role of the deposit insurance system, and strengthening the Bank’s supervision of the State Strengthen the inspection and supervision of credit institutions in the implementation of regulations on credit extension, operational safety and debt classification, setting up risk provisions; inspect, examine and closely supervise credit institutions in the observance of law provisions; actively renovatethe organization and operation of banking inspection and supervision in line with international practices and standards; improve the ability to alert, prevent and handle risks in banking activities; proactively coordinate with functional agencies in detecting and strictly handling law violations in banking activities To promulgate mechanisms, regulations and guide credit institutions to thoroughly handle cross-ownership status among credit institutions and improve transparency in operations of credit institutions; implement measures to ensure that credit institutions are not entitled to contribute capital, purchase shares of other enterprises, credit institutions being shareholders, capital contributing members of such credit institutions Continue to improve the legal framework for management, inspection and supervision in the fields of currency, banking, securities, insurance and SOEs - Promote the inspection and supervision of activities of enterprises, credit institutions, especially SOEs, Corporations and State Corporations; strengthen the effectiveness of real estate management, inspection and supervision, capital market, money market, urban planning and development - Speed up and resolve all cases related to banking activities and executing civil cases to facilitate VAMC to recover debts, reduce bad debts and facilitate credit expansion for the economy Restrict criminalizing economic activities in the 85 banking sector; prioritize the application of economic and civil handling measures to remedy consequences and recover maximum amounts of money and assets for the bank Detecting and strictly handling according to law cases of intentional failure to pay bank debts, intentionally doing contrary and causing serious consequences to the banks - The Government considers, adjusts and supplements the provisions in the direction of increasing financial potential (charter capital) and special powers for VAMC to actively handle the transferred bad debts; reviews or assigns the SBV to guarantee VAMC to issue bonds, treasury bills, or allows VAMC to access capital from international organizations to buy bad debts at market value The Government directs ministries, departments and agencies to assist VAMC in dealing with bad debts, especially in completing legal procedures for collaterals, debt recovery, asset seizure, asset sale, restricting criminalization in civil matters, especially in the sale of debts and assets lower than the original value, thus accelerating the handling of bad debts thoroughly 3.3.3 Proposals to the Ministries/Branch Departments For the Ministry of Finance: Research and issue guiding documents on the implementation of Circular No 209/2013/TT-BTC dated December 27, 2013 on the financial regime for Asset Management Companies of Vietnam Credit Institutions aims to create the right for VAMC to operate in order to ensure the income to attract professionally dedicated staff to handle bad debts For the Ministry of Labor, Invalids and Social Affairs: Urgently issue a circular guiding the salary mechanism to ensure the rights of employees of VAMC For the Ministry of Justice: To assume the prime responsibility and coordinate with the ministries and branches in dealing with inadequacies and problems related to the trading of bad debts through auction At the same time, to assume the prime responsibility and coordinate with the ministries and branches in promulgating legal documents guiding the trading of bad debts through auction while waiting for the promulgation of the Law on Property Auction in the direction of creating rights for VAMC to quickly handle bad debts in the sale of assets and 86 allow VAMC to participate in the execution of judgments on debts sold by the Court for quick sale of assets Propose the Ministry of Justice, the Ministry of Natural Resources and Environment, and the State Bank to promulgate documents guiding the handling of security assets in the direction of reducing the procedures for handling of security assets, speeding up the process of handling bad debts; assisting credit institutions and VAMC in recovering bad debts, handling security assets and completing legal documents of security assets, registering for security asset transactions, speeding up and completely handling the cases related to the bank's activities to create conditions for credit institutions to recover debts To assume the prime responsibility and coordinate with the Ministry of Natural Resources and Environment in studying the possibility of permitting subjects to mortgage land use rights, including organizations and individuals not being CIs to operate in Vietnam to report to the Government when the National Assembly considers amending and supplementing the Land Law For the Ministry of Planning and Investment: To assume the prime responsibility for, and coordinate with the Ministry of Construction in, adjusting and supplementing the guiding circulars in a way that creates favorable conditions for foreign investors to participate in the process of trading bad debts in Vietnam to take advantage of foreign investment To promptly guide Departments of Planning and Investment in registering for bad debt trading business right after the Government promulgates the Decree on business conditions for this industry For the State Bank of Vietnam: Expeditiously submit to the Government a Decree amending and supplementing Decree No 53/2013/ND-CP and Decree No 34/2015/ND-CP on organization and operation of VAMC ; at the same time, continue to supplement and complete mechanisms and policies to support and facilitate the operation of VAMC, ensure the initiative for VAMC and commensurate with the requirements and workload of VAMC; formulating a scheme on trading bad debts according to the market mechanism for VAMC to accelerate the settlement of bad debts of the banking system 87 Complete the legal framework and organizational model of VAMC; Continue to supplement, complete and promulgate mechanisms and regulations on safety of banking activities; strengthen the inspection and supervision of the system of credit institutions, thereby contributing to accurately assess the status of bad debts, propose solutions to deal with bad debts in the long term, improve credit quality of credit institutions - The ministries, branches and localities should step up to support credit institutions in completing legal documents related to loan security assets so that they can recover assets and early handle bad debts of the credit organization The ministries and branches should continue to drastically and synchronously implement solutions to restructure credit institutions, securities markets and state-owned enterprises in the next period, after the project on "Restructuring the system of credit institutions in the period of 2011 - 2015", project on "Restructuring the stock market and insurance enterprises", project on "Restructuring SOEs, focusing on economic groups, state corporations in the period of 2011 - 2015", the overall project on "Restructuring the economy associated with changing the growth model towards improving quality, efficiency and competitiveness in the period of 20132020" was approved by the Prime Minister; actively implement synchronous solutions to restructure, reform and restructure SOEs, economic groups and State corporations in association with the handling of bad debts and financial health of SOEs; closely coordinating with solutions to make the SOEs financially healthy and dealing with bad debts of credit institutions 88 CONCLUSION In the context that Vietnam does not use budget capital, VAMC has been the most effective and feasible tool to handle bad debts, contributing to solving difficulties for enterprises with debt restructuring and interest rate reduction and exemption, even accessing loans of credit institutions As a newly established institution with many difficulties, the initial results of VAMC have supported to accelerate the handling of bad debts In the next phase, VAMC needs to focus all its efforts on debt settlement (selling debts, selling assets, etc.) and buying debts at market prices for newly arising bad debts, gradually reducing debt purchase by special bonds VAMC operates in a centralized debt management model Finding solutions to strengthen the management of bad debt trading at VAMC is a practical requirement The study of solutions to improve the model and enhance the handling of bad debts for VAMC has achieved some research objectives as follows: Firstly, systematize the theoretical basis for bad debts, trading bad debts, focus on presenting the contents and factors affecting bad debt trading activities at AMCs In addition, the study also highlights AMC's experience in handling bad debts in some countries in the world and from that draw experience for AMC in Vietnam Secondly, analyze the status of dealing with bad debts at VAMC for the period of 2016-2018, thereby making comments and assessments of the actual management of bad debt trading at VAMC, indicating the achieved and surviving results as well as the root causes of the problems in trading, handling bad debts at VAMC during the past time Thirdly, based on the results of the situation analysis, the study proposes solutions to enhance the handling of bad debts at VAMC until 2025 The proposed solutions include: Restructuring the organizational structure, improving efficiency results of VAMC; Human resource development; Upgrading information technology infrastructure; Solutions on capital and financial capacity; Solutions to perfect the picture of trading and handling of bad debts of VAMC 89 REFERENCES Hoang Tran Hau (2014), Developing the debt trading market in Vietnam for enterprise restructuring, Ministry-level project, Hanoi Le Ha Diem Chi (2011), "Need to create conditions for the debt trading market to develop", Journal of Corporate Finance, No 10 Minh Duc (2012), "Dealing with bad debts: international experience and lessons for Vietnam", State Tax Magazine, No 35-36 State Bank (2013), Decision No 1459/QD-NHNN dated June 27, 2013 of the Governor of the State Bank on the Establishment of Vietnam Asset Management Company (VAMC) and Additional amendment decisions State Bank (2013), Decision No 1590/QD-NHNN dated July 22, 2013 approving the Regulation on organization and operation of Asset Management Company of Vietnam of Credit Institutions State Bank (2013), Circular No 19/2013/TT-NHNN dated September 6, 2013 regulating about the trading and handling of bad debts of Asset Management Company of Vietnamese credit institutions State Bank of Vietnam, Report on the results of operating monetary policy in the period of 2010-2015 The State Bank of Vietnam (2015), Bad debt situation and major solutions to deal with bad debts in the banking system, Documents for the National Conference of Lecturers in April 2015 Standard Chartered Bank (2013), "Report on Vietnam macroeconomic situation" of global research group 10 Nguyen Quoc Hung (2014), Assessing the suitability in the roadmap, ways and completing the structure for VAMC 11 Nguyen Thi Ngoc Huyen, Doan Thi Thu Ha, Do Thi Hai Ha (2012), Curriculum Management, National Economics University Publishing House 12 Nguyen Van Tien, Nguyen Thi Lan (2014), Textbook of Banking Credit, Statistical Publishing House 90 13 Pham Huu Hong Thai (2012), "Experience in dealing with bad debts in some countries and implications for Vietnam", Journal of Finance, No 11 14 Pham Manh Thuong (2005), "Selecting an appropriate model to handle outstanding debts to promote equitization of SOEs in Vietnam", Journal of Finance, No 15 Pham Manh Thuong (2013), Improving the financial mechanism in dealing with bad debts of the banks, promoting business restructuring, Ministry-level project, Hanoi 16 Quach Manh Hao (2012), "The reality of the bad debt problem", Journal of 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directions, Scientific workshop documents 23 Vo Thi Thuy Anh (2013), "Bad debts of Vietnamese credit institutions", Journal of Danang Socio-Economic Development, No 41 24 World bank group and State Bank of Vietnam (2015), Workshop on securitization of bad debts 91 25 IMF (2002), Nonperforming Loans, Presentation For OECD National Accounts Expert Group Meeting 26 IMF (2003), The Treatment of Nonperforming Loans in Macroeconomic Statistics 27 Ernst and Young (2011), European NPL Report 2011 28 Stefan Steinberg (2009), German cabinet agrees “bad banks” plan for unloading “toxic assets” 29 en Fung, Jason George, Stefan Hohl va Guonan a (2004), Financial Stability Institute, “Public asset management companies in East Asia” 30 Stefan Ingves, Steven A Seelig, and Dong He (2004), “Issues in the Establishment of Asset 31 anagement Companies” ing Wang and Richard Peiser (2005), “Non-Performing Loan Resolution in the Context of China’s Transitional Economy” 32 Ernst and Young, Waseda University (2011), “European Nonperforming Loan Report” 33 IFC (2012), “Distressed Asset Transfer Handbook: General Guidelines for the Purchase and Sale of Distressed Assets in the Financial Sector” 34 European Banking Coordination “Vienna” Initiative (2012), “Working Group on NPLs in Central, Eastern and Southeastern Europe” 35 Alvaro Piris & Arne erggren (2015), “Hungary: operational aspects of establishing an asset management company” 36 Ahmad, N., & Ariff, (2007), ‘ ulti-country study of bank credit risk determinants’ Int J ank Finance (1), 135–152 92 37 AIA (1996), “CA EL Approach to ank Analysis by AIA 1996”, Credit Risk Management of New York, Unpublished paper 38 Anna Sarkisyan (2009), Securitization and Bank Performance, City University London working paper 39 Daniela Klingebiel (1999) Document World Bank: The Use of Asset Management Company in the Resolution of Banking Crises Cross – Country Experience Link truy cập lần cuối http://www1.worldbank.org/finance/assets/images/wp002284.pdf ngày 20/10/2015 40 David Woo (2000) IMF Working Paper: Two Approaches to Resolving Non- performing Assets During Financial Crises Link truy cập lần cuối https://www.imf.org/external/pubs/ft/wp/2000/wp0033.pdf ngày 20/10/2015 41 Stefan Ingves (2004) IMF Policy Discussion Paper Issues in the Establishment of Asset Management Companies Link truy cập lần cuối https://www.imf.org/external/pubs/ft/pdp/2004/pdp03.pdf 20/10/2015 93 ngày APPENDIX QUESTIONAIRE SURVEY FOR RESEARCH PURPOSE A Sociological investigation method Questions for credit institutions What’s your opinion about the causes of non-performing debts (NPLs) at commercial banks What is the solution to limit the arising of NPLs? What’s your opinion about NPL-resolution through Asset Management Companies? Solutions to enhance the operations of these companies? Currently, VAMC is applying many solutions to assist credit institutions in NPLs resolution, including the credit institutions that you are working for How you evaluate these solutions? Is there any limitation and modification needed to improve? What difficulties credit institutions often encounter in NPLs resolution? What are difficulties in legal framework, coordination of local authorities ? Your recommedation to improve? Questions for VAMC departments (business unit) What difficulties you encounter when performing assigned professional tasks? Any suggested solution? How you assess the effectiveness of current VAMC’s solutions to resolute NPLs? Any proposed solutions? In order to enhance the role as a central unit to resolute NPLs of credit institutions, what measures & solutions should VAMC implement? How you evaluate the current legal framework in NPLs resolution? Any recommendation? How you evaluate the labor welfare at VAMC? Any recommendation? B Expert method Could you please give your opinion on the establishment of AMCs to deal with NPLs? Is there any international experience and lessons for Vietnam? Could you please tell us the direction of VAMC's operation in the period to 2025 and vision to 2030? Would you please tell us solutions to enhance the operation and role of VAMC in the next period Would you please tell us in order to improve the legal framework for VAMC's operations, what should be proposed to National Assembly, Government and Ministries? 94 ... determined as bad debts according to regulations mentioned in the Appendix on determination of bad debts, issued together with the Resolution and bad debts that VAMC purchased from CIs; (ii) Bad debts... organizations and individuals to provide information and documents on organization and operation of the borrowers, debtors, guarantors; information, documents on bad debts, collaterals of bad debts... Chapter 2: Actual situation of bad debt trading, handling of VAMC Chapter 3: Solutions to strengthen bad debt handling of VAMC CHAPTER 1: BASIC ISSUES ON BAD DEBT AND BAD DEBT TRADING, HANDLING