Consolidated Document No. 09/VBHN-NHNN: Rules on Purchase, Sale and Handling of Bad Debts by the Vietnam Asset Management Company (VAMC)

Overview

Consolidated Document No. 09/VBHN-NHNN, issued by the State Bank of Vietnam (SBV), merges Circular No. 19/2013/TT-NHNN dated September 6, 2013 with six subsequent amending circulars:

• Circular No. 14/2015/TT-NHNN (effective October 15, 2015)
• Circular No. 08/2016/TT-NHNN (effective August 1, 2016)
• Circular No. 09/2017/TT-NHNN (effective August 15, 2017)
• Circular No. 32/2019/TT-NHNN (effective February 14, 2020)
• Circular No. 03/2024/TT-NHNN (effective July 1, 2024)
• Circular No. 69/2025/TT-NHNN (effective February 15, 2026, cutting business conditions and simplifying administrative procedures in banking supervision)

As a consolidated text, it does not itself create new legal rules; it simply gives readers the full, current legal framework in one place instead of requiring them to cross-reference seven separate documents.

Scope and who it applies to

The Circular governs the purchase, sale, and resolution of bad debts, and the issuance, management, and repayment of special bonds and directly issued bonds to credit institutions or foreign bank branches selling debt, all carried out by the Vietnam Asset Management Company (VAMC).

It applies to:

• VAMC
• Credit institutions and foreign bank branches selling debt
• Borrowers
• Guarantors
• Other related organizations and individuals

Key definitions

• Bad debt: covers debt already recorded as non-performing on a credit institution's balance sheet under SBV asset-classification rules, debt already written off against risk provisions but not yet recovered and tracked off-balance-sheet, and debt VAMC has purchased but not yet recovered.
• Restructuring a bad debt: adjusting the repayment schedule, extending the loan term, reducing or waiving overdue interest, fees, or penalties, or adjusting the interest rate.
• Special bond: a term security issued by VAMC to purchase bad debt from Vietnamese credit institutions.
• Directly issued bond: a term security VAMC issues directly to the selling credit institution or foreign bank branch when VAMC buys bad debt at market value.
• Special bond term extension: lengthening an already-issued special bond's term, capped so the original term plus any extension does not exceed 10 years from issuance.

Foreign-exchange management in debt trading

VAMC, the selling credit institution or foreign bank branch, the debt buyer, the borrower, and related parties must comply with Vietnam's foreign-exchange restrictions. Specifically:

• For VND-denominated deals: the buyer pays through a VND payment account at a commercial bank or foreign bank branch in Vietnam.
• If the buyer is a non-resident paying in foreign currency: payment goes through a licensed foreign-currency account in Vietnam, or the buyer's own overseas foreign-currency account.
• Debt recovery proceeds must be channeled into exactly one VND account, or one foreign-currency account if recovered in foreign currency, belonging to the buyer.
• For debt arising from offshore lending or from guarantees paid on behalf of non-residents, both the seller and buyer must register the relevant changes or recovery plans under existing foreign-exchange management rules.

Authority, currency, and bond issuance

Decision-making, contract-signing, and execution authority for debt purchase and sale follows the charter and internal rules of VAMC and the credit institution involved. The currency for debt trades between VAMC and credit institutions is VND; if VAMC buys bad debt in foreign currency, a separate exchange-rate rule applies.

Section 2 of Chapter II sets out who may issue bonds and special bonds, for what purpose, and under what principles. Section 3 sets the eligibility conditions for a bad debt to be purchased by VAMC using special bonds, plus the approval process for setting a special bond's specific term - routed through the Banking Supervision Agency, with input from the Monetary Policy Department and VAMC, for final decision by the SBV Governor.

What this means for businesses

Although this is primarily an internal banking-sector operating document, several provisions can directly affect borrowing businesses:

• If your loan is sold to VAMC, you and any guarantor retain the right to be notified and to have the statutory debt-restructuring mechanisms (rescheduling, extension, interest or penalty reduction or waiver) applied.
• Businesses with foreign-currency loans or debt arising from cross-border transactions should be aware of the foreign-exchange registration requirements that apply when that debt changes hands.
• Because this is a consolidated reference document, businesses and accountants should still confirm specifics with their credit institution or VAMC directly when a debt-sale transaction affecting their loan occurs.