These are two sets of very important principle documents in handling bad debt, with a civilized settlement process between credit institutions (lenders) and enterprises (borrowers) to handle debts between enterprises and credit institutions.
Sharing at the meeting, Dr. Nguyen Quoc Hung expressed his gratitude for the effective coordination of the International Finance Corporation (IFC) in the past time, as well as the proposal and coordination to develop a set of documents on debt handling. Dr. Nguyen Quoc Hung said that the development of the above two sets of documents plays an important role in the context that the State Bank is also developing a Draft Proposal to develop a Law on Handling Bad Debts of Credit Institutions. Therefore, when developing a draft document on debt handling, in addition to referring to and filtering good practices from the world, it is necessary to synchronize and be consistent with other legal documents for unified implementation.
Dr. Nguyen Quoc Hung, Vice-Chairman cum Secretary General of VNBA
Dr. Nguyen Quoc Hung suggested that the two sides should soon deploy, establish information exchange points, and establish a Drafting Team with the participation of representatives of IFC, VNBA and representatives of member credit institutions. It is expected that around June 2025, the draft of the above two sets of documents will be completed. After that, the Banking Association will send the draft to seek comments from the State Bank of Vietnam, the Ministry of Public Security, the Ministry of Justice, the Supreme People's Procuracy, the Supreme People's Court, etc. before being officially issued (expected in September or October 2025).
Ms. Nina Mocheva - Senior Financial Expert of the International Finance Corporation
At the meeting, Ms. Nina Mocheva - Senior Financial Expert of the International Finance Corporation (IFC) sincerely thanked Dr. Nguyen Quoc Hung and VNBA for their cooperation and creating conditions for direct discussion on the progress of drafting the document set "Handbook for Out-of-Court Debt Restructuring" and "Code of Conduct in Debt Collection Activities". At the same time, she agreed with the plan proposed by VNBA.
IFC representative committed to closely coordinate with VNBA to develop the above document set in accordance with international practices and comply with Vietnamese laws, in order to help credit institutions easily and effectively use it.
Previously, on December 19, 2024, Vice Chairman and General Secretary of the Vietnam Banks Association (VNBA) Nguyen Quoc Hung also had a meeting and worked with experts from the International Finance Corporation (IFC) to summarize and evaluate the successful results of the seminar "Out-of-court debt settlement - International practices and practical experience" and the training session on "Out-of-court settlement methods (OCW) and arbitration (ADR) in bad debt settlement" organized by IFC in coordination with VNBA for 2 days, December 17-18, 2024 in Hanoi. At the same time, a roadmap was proposed to develop a draft set of guidelines for out-of-court debt restructuring on bad debt settlement, to be applied to credit institutions in handling bad debt in Vietnam.
