From 6 November 2026, Decree 359/2026/ND-CP on the establishment, organisation, operation and financial mechanism of the Vietnam Asset Management Company of credit institutions (VAMC) is officially in force. Issued by the Government on 17 September 2026, it fully replaces Decrees 53/2013/ND-CP, 34/2015/ND-CP and 18/2016/ND-CP, creating a new legal framework for bad-debt resolution in the banking system.

VAMC: VND5 trillion in charter capital, owned through the SBV

According to the Vietnam Banks Association, VAMC is a single-member limited liability company wholly owned by the State, set up by the State Bank of Vietnam (SBV), which acts as owner representative, with charter capital of VND5,000 billion. It is headquartered in Hanoi and governed by a Members' Council (no more than 7 members), a Supervisory Board (no more than 3) and an Executive Board.

How debt is bought: at market value or with special bonds

VAMC buys bad debt at market value or with special bonds. Credit institutions with a bad-debt ratio of 3% or more (or a level set by the SBV Governor) must sell bad debt to VAMC based on inspection, valuation or independent audit results. Special bonds are issued in dong at 0% interest, with a maximum term of 5 years, or up to 10 years for credit institutions under restructuring or in financial difficulty; holders can use them to borrow refinancing from the SBV.

Beyond "selling debt": new restructuring and recovery tools

According to analysis by Doanh nghiep va Hoi nhap magazine, the key change is a broader role for VAMC. Beyond buying, collecting and selling debt and handling collateral, VAMC may restructure debt, convert debt into capital contributions or shares, make financial investments, guarantee loans and advise on restructuring. It may adjust repayment terms, reduce or waive overdue interest and, for debt bought at market value, cut part of the principal if this is shown to be effective.

Notably, borrowers whose bad debt was sold to VAMC but who have a feasible business plan may still be considered for new credit. The magazine stresses this is a matter of "consideration", not a blanket debt write-off. Rules on seizing collateral are also clearer, with defined coordination roles for commune-level authorities and police.

Key takeaways