Tuesday, August 21 2018

VietNamNews

DATC targets highest debt settlement since 2015

Update: June, 20/2018 - 18:23
In 2018, DATC will restructure the debts of some major State-owned enterprises, including Shipbuilding Industry Corporation (SBIC), Vietnam National Shipping Lines (Vinalines), Vietnam Northern Food Corporation and some other corporations. — Photo baodauthau.vn
Viet Nam News

HÀ NỘI – Việt Nam’s Debt and Asset Trading Corporation (DATC) has targeted to settle VNĐ3 trillion (US$131.6 million) worth of debts and assets in 2018, the highest since 2015. 

The Ministry of Finance’s debt trader expects to earn a four-year high revenue of VNĐ2.5 trillion this year. However, its after-tax profit is projected at a modest VNĐ350 billion, down by 12 per cent against 2017.

In 2018, DATC will restructure the debts of some major State-owned enterprises, including Shipbuilding Industry Corporation (SBIC), Vietnam National Shipping Lines (Vinalines), Vietnam Northern Food Corporation and some other corporations.

According to DATC, an inadequate legal framework for debt trading activity has restricted the company’s efforts in supporting more companies in restructuring their debt purchase. Meanwhile, entanglement in divestiture by selling interest in whole lots, accompanied with debt (its specific characteristic), has not been resolved, negatively affecting the divestment progress.

By the end of 2017, DATC managed debts worth nearly VNĐ20.6 trillion, accounting for 78 per cent of the total assets. Its charter capital was VNĐ6 trillion.

Last year, it reported a total revenue of VNĐ2.44 trillion and a net profit of nearly VNĐ317 billion.

Việt Nam has two State debt trading companies, DATC and the Việt Nam Asset Management Company (VAMC). While VAMC is responsible for handling bad debts of commercial banks and financial institutions, DATC has focused on settlements of bad debt owned by State-owned enterprises in the pre- and post-equitisation processes. – VNS

 

 

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