Vietnam set to expand asset management rules for banks

Vietnam’s central bank is preparing to issue new rules governing asset management companies (AMCs) under commercial banks, aiming to accelerate the resolution of non-performing loans (NPLs). The State Bank of Vietnam (SBV) said it has finalised a draft circular expanding AMC mandates, now open for public consultation. Existing regulations, in place since 2001, no longer reflect the complexity of today’s financial system. The move seeks to enable more robust debt handling mechanisms, amid a limited bad debt trading market and minimal market-based NPL sales. Experts stress the need for a transparent, investor-friendly debt market to attract foreign capital and strengthen banks’ balance sheets. New rules could align Vietnam with global practices seen in South Korea and China.