THE GOVERNMENT

Decree No.  53/2013/ND-CP dated May 18, 2013 of the Government on the establishment, organization and operation of Vietnam Asset Management Company
Pursuant to Law on Governmental Organization dated December 25, 2001;
Pursuant to the Law on the State Bank of Vietnam of Vietnam No.46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to Enterprise Law No.60/2005/QH11 dated November 29, 2005;
At the proposal of the Governor of the State Bank of Vietnam of Vietnam,
The Government issues this Decree on the establishment, organization and operation of Vietnam Asset Management Company,
Chapter I
GENERAL PROVISIONS

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Article 1. Scope of regulation
This Decree promulgates on the establishment, organization and operation of Vietnam Asset Management Company
Article 2. Subject of application
1. Asset Management Company
2. Vietnamese credit institution (hereafter referred to as credit institution)
3. Other institutions and individuals related to the establishment, organization and operation of the asset management company.
Article 3. Establishing Asset Management Company
1. The State Bank of Vietnam (hereinafter called State Bank of Vietnam) shall establish the Asset Management Company to handle bad debts, promote reasonable credit growth for the economy.
2. Asset management company is a specialized enterprise and is organized in the form of a one-member limited liability company whereby the State owns 100% of charter capital and subject to the State management, inspection and monitoring conducted by the State Bank of Vietnam.
Article 4. Term explanation
In this Decree, the following terms are construed as follows:
1. Vietnamese credit institution is a credit institution established and operating under the Law on credit institutions, excluding credit institutions with 100% foreign capital and Joint-venture credit institutions.
2. Loan customer includes institution (excluding foreign credit institutions and bank branches), individuals granted credit by credit institutions for bond purchase; enterprises and institutions (excluding foreign credit institutions and bank branches) receiving the entrustment of credit institutions to purchase bonds of enterprises bad debts and sell them to the asset management company.
3. Existing loan customer is the loan customer who has not revoked his License of operation, dissolved and broken as prescribed by law (for institutions) or is not dead or missing (for individuals)
Article 5. Operation principles of the Asset Management Company
The Asset Management Company shall operate in principles as follows:
1. Covering expenditures with revenues and not for profit
2. Being public and transparent in the activities of purchase and handling of bad debts.
3. Limiting risks and expenses in handling of bad debts.
Article 6. Granting credit to customers owning bad debts for selling to asset management company
The loan customer who has bad debts to be sold to the asset management company and has feasible business and production plan shall be further considered and granted credit by credit institution as agreed and prescribed by law,
Article 7. Methods that the asset management company buys credit institution’s bad debts
1. Buying credit institution’s bad debts in the book value by special bonds by issued by the asset management company.
2. Buying credit institution’s bad debts with market price by the fund which is not special bonds.
3. Based on the Asset Management Company’s financial capacity, economic efficiency and market conditions, the Asset Management Company may buy the credit institution’s bad debts by the method prescribed in Clause 2 of this Article for bad loans meeting the following conditions:
a) Meeting the conditions specified in Article 8 of this Decree;
b) Being able to fully recover money used to buy bad debts;
c) Secured assets of the bad debts can be put on sale;
d) Loan customer is able to restore debt repayment
4. The member Board of the Asset Management Company shall develop the plan for buying bad debts by the method specified in Clause 2 of this Article for submission to the Governor of the State Bank of Vietnam before implementation.