The VAMC, which is scheduled to begin operating on July 9, is a wholly State-owned firm controlled by the State Bank of Vietnam (SBV) with charter capital of VND500 billion (US$23.5 million).
The company will issue special bonds to buy the bad debts that are preventing troubled banks from providing more business loans and dampening economic growth.
Last year, Vietnam’s gross domestic product grew 5.03%, the slowest pace since 1999, while total economic output increased by 4.9% in the first half of 2013.
SBV chief inspector Nguyen Huu Nghia was quoted by the Vietnamese Government Portal as saying that the ratio of non-performing loans was 4.65% as of the end of May.
The VAMC will be headquartered at 22 Hang Voi Street in Hanoi and will open branches in major provinces and centrally-governed cities.
