DECISION

APPROVING “RESTRUCTURING OF CREDIT INSTITUTIONS ASSOCIATED WITH BAD DEBT SETTLEMENT IN 2021 – 2025 PERIOD” SCHEME

THE PRIME MINISTER OF VIETNAM

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law dated November 20, 2017 on amendments the Law on Credit Institutions;

Pursuant to the Resolution No. 16/2021/QH15 dated July 27, 2021 of the National Assembly on the 05-year socio-economic development plan in the 2021-2025 period;

Pursuant to the Resolution No. 31/2021/QH15 dated November 12, 2021 of the National Assembly on the economic restructuring plan in the 2021-2025 period;

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Pursuant to the Government’s Resolution No. 50/NQ-CP dated May 20, 2021 introducing the Government’s action plan for implementation of the Resolution of the 13^th National Congress;

Pursuant to the Government’s Resolution No. 99/NQ-CP dated August 30, 2021 introducing the 2021 – 2026 term Government’s Action plan for implementation of the National Assembly’s Resolution on the 5-year socio-economic development plan in the 2021-2025 period;

Pursuant to the Prime Minister’s Decision No. 986/QD-TTg dated August 08, 2018 approving the Strategy for development of Vietnam’s banking sector by 2025 with a vision by 2030;

At the request of the Governor of the State Bank of Vietnam (SBV);

HEREBY DECIDES:

Article 1. The “Restructuring of credit institutions associated with bad debt settlement in 2021 – 2025 period” Scheme (hereinafter referred to as the "Scheme") is hereby given approval. The Scheme includes the following primary contents:

I. VIEWPOINTS

1. Consider the restructuring of credit institutions associated with the bad debt settlement as an objective requirement which shall be fulfilled by inheriting the outcomes achieved from the previous period, remedying shortcomings, minimizing and actively dealing with any difficulties that may arise in the new period; carry out the restructuring process in a comprehensive, cautious and step-by-step manner that ensures the compliance with the rules of the socialist-oriented market economy, openness and transparency; make the best use of existing resources of credit institutions for settling bad debts; maintain stabilization and safety of, and protect the system of credit institutions from crises that may trigger its breakdown; Ensure legitimate rights and interests of depositors.

2. Consider the revision of legal frameworks as the key solution so as to establish affirmative legal grounds, deal with difficulties actually arisen, and then serve the restructuring of credit institutions and action against “very poor” rated credit institutions in a safe, effective and transparent manner.

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4. Develop a diversified system of credit institutions in terms of ownership and business types, in which State-owned commercial banks shall play the dominant and leading role in the market and should has a high competitiveness in both domestic and international markets; encourage and facilitate the participation by credit institutions of strong financial health and administration capabilities in consolidation, merger and acquisition of small-scale credit institutions or those posing operational risks.

5. Actively and flexibly regulate monetary policies which should be associated with other financial and macroeconomic policies so as to control inflation, contribute to the macroeconomic stability, support the sustainable economic recovery and growth, form a prelude to the restructuring of credit institutions associated with bad debt settlement, and develop the trust by people as well as domestic and foreign investors in Vietnam’s banking sector.

II. OBJECTIVES

1. General objectives

a) Make remarkable and practical transformation in the process of restructuring of credit institutions associated with bad debt settlement; by 2025, strive to reduce the number of, and substantially deal with “very poor” credit institutions and banks, achieve the goal of no banks classified “very poor”, and develop a strong and sustainable system of credit institutions.

b) Develop the system of credit institutions in which domestic credit institutions shall play the dominant role, operate in a healthy, high-quality, efficient, open and transparent manner, and meet safety standards for banking activities in accordance with regulations of law with the aim of achieve compliance with international practices and towards achieving development level of ASEAN-4 countries.

c) Speed up settlement of bad debts, improve credit service quality, prevent and minimize new bad debts; improve financial capabilities of credit institutions; prevent cross-investment, cross-ownership and manipulative and dominant ownership in relevant credit institutions.

2. Specific objectives

a) Pilot the application of Basel II advanced approaches in commercial banks of which controlling shares are held by the State and joint-stock commercial banks of good administration quality that have successfully applied Basel II standardized approaches by the end of 2025; commercial banks are expected to achieve a CAR (capital adequacy ratio) of at least 10 – 11% and 11 – 12% by 2023 and 2025 respectively.

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- With regard to operating credit institutions (excluding commercial banks, finance companies and finance lease companies that are given “poor” or “very poor” rating/placed under special control/are undergoing restructuring plans approved by competent authorities):

+ Minimum charter capital to be maintained by commercial banks: (i) large-scale domestic commercial banks having financial potential and competitiveness: VND 15.000 billion; (ii) small and medium-scale domestic commercial banks having financial potential and competitiveness, and foreign-invested commercial banks: VND 5.000 billion;

+ Minimum charter capital to be maintained by finance companies: VND 750 billion;

+ Minimum charter capital to be maintained by finance lease companies: VND 450 billion.

- With regard to commercial banks, finance companies and finance lease companies that are given “poor” or “very poor” rating/placed under special control/are undergoing restructuring plans approved by competent authorities: the charter increase plan shall be subjected to approval given by competent authorities.

c) At least 2 - 3 commercial banks are expected to be ranked in the top 100 strongest banks in Asia (in terms of strength criterion); joint-stock commercial banks are expected to complete procedures for listing of their shares on Vietnam’s securities market, and at least 1 - 2 banks are expected to have their shares listed on the international securities market.

d) Develop digital bank models, enhance utilities and customer experience, and achieve objectives concerning financial inclusion and sustainable development based on further application of new and advanced technologies to management and provision of services and products with professional operation optimization and automation.

dd) Make the best use of achievements of the fourth industrial revolution for upgrading and developing payment infrastructure and non-cash payment services so as to meet payment demands of both institutional and individual customers in a convenient and efficient manner; ensure security, safety and confidentiality in non-cash payment activities, and protect legitimate rights and interests of payment service users.

e) The ratio of incomes from provision of noncredit services to total incomes of commercial banks is expected to reach 16 - 17% by the end of 2025. The rate of banks’ loan capital invested in low-carbon manufacturing and consumption industries is expected to be increased.

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i) Complete the model, functions and operational mechanism of the co-operative bank that should be financially capable, has increased administration, management and control competence, and will be operated in a safe, efficient and sustainable manner to well play the role of a bank for all people’s credit funds (make interconnection, provide financial support, regulate capital as well as ensure safety of the system of people's credit funds), assist the promotion of development of collective economic types that are other cooperatives nationwide.

k) Strive to reduce the ratio of non-performing loans of credit institutions, bad debts sold to Vietnam Asset Management Company (VAMC) but yet to be settled or collected, and debts that may be turned into bad debts to less than 3% by the end of 2025 (excluding those of “very poor” rated commercial banks).

III. PRINCIPAL DUTIES AND SOLUTIONS

1. General solutions

a) Establish a complete legal framework on currencies and banking operations, restructuring and settlement of bad debts on the basis of strict compliance with the rules of market economy and international practices, and assurance of conformity with existing conditions of Vietnam.

- Regarding the legal framework on restructuring and settlement of bad debts of credit institutions:

+ Research, review and amend the Law on the State Bank of Vietnam, the Law on Credit Institutions, the Law on Deposit Insurance, and other relevant legislative documents as follows: (i) research, formulate and establish mechanisms for facilitating the participation by credit institutions in the restructuring of “very poor” rated credit institutions so as to minimize negative financial and operational effects; (ii) research and establish additional functions and duties of Deposit Insurance of Vietnam to participate in the restructuring of “very poor” rated credit institutions; (iii) research and formulate debt valuation standards (including bad debts) which shall be then used as legal grounds for performing and ensuring objectivity of debt valuation activities (including bad debts). 

+ Review, amend and revise regulations on operation of VAMC and Vietnam Debt and Asset Trading Corporation (DATC) to enhance their roles and efficiency in settling bad debts.

- Regarding policies on assurance of safety for banking operations, inspection and supervision:

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+ Review, research and amend regulations on prevention of cross-ownership and abuse of management and administration rights or majority shareholder’s rights that aim at manipulating operations of credit institutions towards reducing the holding of a shareholder, shareholders and related persons to limit their dominance and influence as well as ensure the popularity of credit institutions.

+ Review and amend regulations, and provide guidelines on financial and accounting reports that facilitate credit institutions' application of International Financial Reporting Standards (IFRS) in conformity with the Scheme for application of financial reporting standards in Vietnam enclosed with the Minister of Finance’s Decision No. 345/QD-BTC dated March 16, 2020.

+ Continue establishing a complete legal framework on assurance of safety for operations, management, administration, risk management and other regulations applicable to people's credit funds in conformity with the Law on Credit Institutions (as amended).

- Regarding regulations on licensing for establishment and development of credit institutions:  Review and amend current regulations on licensing, organizational and operational requirements (especially criteria regarding financial capability, management and administration, and compliance with regulations and laws) to be satisfied by credit institutions in general, and wholly foreign-invested credit institutions and foreign bank branches operating in Vietnam in particular.

- Regarding regulations on establishment and operation of digital banks, digital transformation and payment activities: Research, review and propose amendments to gradually establish a complete legal framework on establishment and development of models of digital banks, payment activities and relevant regulations and laws that aim at facilitating digital transformation in banking sector and payment activities.

- Regarding regulations on green credit and green banks that aim at promoting banks’ loan capital invested in low-carbon manufacturing and consumption industries: Research and promulgate incentive policies and mechanisms for supporting and encouraging credit institutions to promote green credit, green banks, and low-carbon manufacturing and consumption industries; develop non-cash payment services on the basis of taking advantage of achievements of the fourth industrial revolution to serve the greenification of banking operations.

- Regarding the legal framework on assistance for restructuring and settlement of bad debts:

+ Research, review and amend regulations on development of debt trading market, management and surveillance of debt trading market, encourage the participation in the debt trading market to establish a complete legal framework for trading and settlement of bad debts, and promote the development of the debt trading market.

+ Research, review and amend legislative documents on increase of capital of state-invested credit institutions.

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b) Supporting solutions

- Regarding solutions for regulating the implementation of monetary policies:

+ Regulate the implementation of monetary policy tools in a flexible and synchronous manner which should be in harmony with other financial and macroeconomic policies so as to control inflation, contribute to the macroeconomic stability, and support the sustainable economic growth.

+ Actively regulate the implementation of credit solutions to control the credit scale and growth according to orientation objectives and in association with improvement of credit quality and restructuring of credit institutions. Direct credit institutions to develop credit effectively and focus on extending credit in prioritized business and production sectors; closely control credit extended in high risk-prone areas. Continue implementing solutions for dealing with difficulties in accessing the banks' credit, facilitate the application for loans by enterprises and people, and prevent black credit.

+ Research and adopt appropriate solutions for encouraging banks to apply Basel II advanced approaches towards applying Basel III when credit institutions meet financial and personnel requirements.

- Regarding improvement of efficiency and validity of banking inspection and supervision; improve competence and service quality of banking inspection and supervision staff:

+ Intensify and innovate inspection tasks with a view to quickly and robustly shifting from the inspection of compliance to risk–based inspection, closely associating risks with banking inspection tasks, gradually applying the inspection and supervision methods to the entire system of credit institutions and foreign bank branches in a consistent manner; focus on thematic, targeted and focused inspections of sectors, entities and contents posing high risks to safety of banking sector.  Intensify technological investments to support banking inspection and supervision.

+ Continue innovating supervision tasks with a view to (i) enhance the efficiency of microprudential supervision and macroprudential supervision on the basis of implementation of new tools and methods of risk oversight associated with boosting operation and application of technical infrastructure, information technologies, and database on operations of credit institutions; (ii) build and develop database serving inspection, supervision, management, software and tools for supporting inspection and supervision tasks (in which effective use of existing database of banking sector is paid attention); (iii) improve capacity to detect, analyze, give early warnings and propose measures for preventing risks and crises that may affect the safety and stability of the monetary and banking system.

+ Formulate and implement recruitment plans for strengthening banking inspection and supervision forces; intensify professional training courses to enhance competence of banking inspection and supervision forces.

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Credit institutions shall formulate and organize implementation of plans and solutions appropriate to each group of credit institutions, including: increase of charter capital, increase of capital adequacy ratio to increase financial capacity and safety of banking operations, management and administration capacity, and credit quality, etc.; they are encouraged to participate in acquisition, merger, consolidation of credit institutions on voluntary basis to expand scale and scope of operation as well as their competitiveness; develop and apply Base II advanced approaches with a view to achieving development level of ASEAN-4 countries by 2025. Credit institutions given "poor" or "very poor" rating shall adopt remedial measures in accordance with regulations of law to ensure the safety of system of credit institutions, political security and social order and safety. The followings shall be considered key solutions:

a) Commercial banks over 50% of charter capital of which is held by the State (excluding compulsorily acquired banks) shall:

- Develop plans for improvement of operational efficiency and quality, and organize implementation of such plans according to charter capital increase solutions for improving and enhancing their financial capability, piloting application of Basel II advanced approaches (particularly, Agribank shall continue applying standardized approaches). To be specific: (i) In 2022 – 2023 period: increase charter capital with after-tax profits that remain after setting aside funds in the 2021 – 2023 period for joint-stock commercial banks over 50% of charter capital of which is held by the State and with funding derived from state budget for Agribank; (ii) In 2024 – 2025 period: research and consult competent authorities about capital increase in accordance with regulations of law to ensure the system’s safety.

- Agribank shall proactively develop plans for comprehensive restructuring to improve its operational efficiency and quality, and play the leading role in the field of agricultural and rural development credit; increase charter capital according to the plans approved by competent authorities; make preparations for equitization after the Ministry of Finance completes approval for the plan for the bank's house and land arrangement; carry out listing of shares on Vietnam’s securities market.

b) Compulsorily acquired commercial banks shall:

- Carry out restructuring according to the plans approved by competent authorities in conformity with regulations of law.

- Intensify inspection and internal control of banking operations, promptly detect, prevent and take actions against shortcomings and risks during their operations.

- Speed up settlement of bad debts; carry out debt classification in accordance with regulations of law; speed up and improve efficiency of settlement and recovery of debts and assets for banks.

c) Joint-stock commercial banks, financial companies and finance lease companies shall:

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+ Continue developing and improving financial capacity in terms of both scale and quality, operational efficiency and competitiveness according to the market mechanism, ensure public disclosure and transparency, and strict conformance to banking management and safety standards as prescribed in laws and international practices; develop and provide modern banking products and services;

+ Increase capital and improve the quality of equity of credit institutions so as to ensure that the charter capital of a credit institution shall not be lower than its legal capital in accordance with regulations of law, and increase the capital adequacy ratio according to international standards;

+ Encourage the participation in acquisition, consolidation and merger of credit institutions on their voluntary basis to increase their scale and scope of operation, and competitiveness;

+ Develop and apply Basel II advanced approaches with the aim at reaching the development level of ASEAN-4 countries by 2025;

+ Credit institutions given "poor" or "very poor" rating shall be considered for implementing early interventions, special control and other measures in accordance with regulations of law to ensure the safety of system of credit institutions, political security and social order and safety.

d) With regard to cooperative banks, people’s credit funds and microfinance institutions:

- Improve financial capability for cooperative banks, including increase of charter capital of cooperative banks from lawful funding sources; elevate roles and responsibilities of cooperative banks to perform inspection, supervision and support for operations of the system of people's credit funds; improve capacity to regulate capital, inspect and supervise the use of borrowed funds of people's credit funds; proactively get involved in dealing with people's credit funds given “very poor” rating, facing difficulties or showing the sign of unsafe credit operations.

- Continue reinforcing, correcting and gradually reducing the quantity of people's credit funds (especially those given “very poor” rating) with the aim to ensure that people's credit funds are operated according to objectives and principles of credit institutions existing in the form of cooperative, improve safety, efficiency, stability and sustainability of operations of people's credit funds in conformity with demands, scale and areas of operation as well as economic growth of local areas. To be specific:

+ Review, assess and classify people's credit funds into 02 groups as follows: (i) Group of normally operating people's credit funds; (ii) Group of people's credit funds given “very poor” rating and posing potential risks to safety of banking sector, security and social order of local areas.

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- Promptly establish a complete legal framework on and gradually develop a safe and sustainable market-oriented system of microfinance institutions; ensure that family households, low-income earners and microenterprises may have access to diversified financial services of acceptable quality; implement policies and guidelines of Vietnamese Communist Party and State on assurance of social security and sustainable poverty reduction. To be specific:

+ Establish a complete management mechanism and legal corridor for microfinance institutions, microfinance programs and projects, and facilitate operations of microfinance institutions.

+ Facilitate the connection between operations of credit institutions existing in different forms and those of microfinance institutions.

dd) With regard to foreign credit institutions (joint-venture or wholly foreign-owned credit institutions):

Continue providing foreign credit institutions with advantageous conditions for doing business and fairly competing with Vietnamese credit institutions; encourage foreign credit institutions to get involved in supporting and dealing with difficulties and weaknesses of Vietnamese credit institutions; encourage foreign credit institutions to play the leading role in developing and applying modern technologies and launching new products and services in Vietnamese market; assist Vietnamese credit institutions in accessing new procedures, products and technologies to meet demands of customers for more and more diversified products and services.

3. Solutions for settlement of bad debts

- Assess quality and ability of debt recovery so as to adopt appropriate handling measures; set aside and use provisions for loan losses for handling bad debts in accordance with regulations of law; modify and complete legal documents on collateral; collect debts and handle collateral; strictly control and reduce operational expenses; continue implementing measures for preventing and minimizing new bad debts and improving credit services; proactively cooperate with local governments and competent regulatory authorities, especially public security agencies, People’s Courts and judgment enforcement agencies at all levels, in handling collateral for collecting debts so as to recover as much of debt amounts as possible and minimize losses incurred by credit institutions.

- Request competent authorities to consider allocating additional funds to the charter capital of VAMC which is expected to reach VND 10.000 in the 2022 – 2025 period with the aim of improving financial capability and operational efficiency of VAMC.

- Intensify cooperation between ministries and relevant authorities in handling bad debts of credit institutions.  Chairpersons of Provincial People’s Committees shall direct local authorities at all levels and relevant agencies to facilitate local credit institutions’ handling of bad debts and disposition of collateral therefor, especially support for completion of administrative procedures with local authorities for bad debt handling, collateral disposition and legal procedures for real estate projects which are provided as collateral that is given with the aim at gradually dealing with difficulties and disposing of collateral for debt recovery purposes; provide credit institutions with advantageous conditions for promptly disposing of collateral for bad debts in cases under consideration of local authorities in accordance with regulations of law.

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All resources shall be mobilized and used (including social resources and State resources used for supporting the restructuring of “very poor” rated credit institutions and settlement of bad debts), including: (1) provisions for loan losses, proceeds from settlement of bad debts and disposition of collateral therefor; (2) earnings from performance of the central bank’s supply of money functions; (3) technical reserve fund of deposit insurance; (4) resources derived from state budget; (5) other lawful resources.

V. IMPLEMENTATION ORGANIZATION

1. The State Bank of Vietnam (SBV) shall:

a) play the leading role and cooperate with relevant Ministries, regulatory authorities and local governments in implementing the Scheme and promulgating the action program/plan, in which specific objectives, duties and solutions, implementation schedule, and presiding entities must be indicated to ensure the efficient implementation of the Scheme.

b) play the leading role and cooperate with relevant agencies in requesting the Prime Minister to strengthen the Steering Board for restructuring of credit institutions.

c) expedite and cooperate with relevant Ministries, regulatory authorities, local governments and organizations in implementation of the Scheme; submit annual reports to the Prime Minister by December 31 of each year on implementation schedule, outcomes, difficulties and proposed solutions for dealing with difficulties beyond its competence.

d) direct and instruct credit institutions to formulate and submit their own plans for restructuring associated with bad debt settlement (hereinafter referred to as “restructuring plans”) to competent authorities for approval; supervise the implementation of restructuring plans of credit institutions.

dd) play the leading role and cooperate with Ministry of Finance and Ministry of Planning and Investment in formulating the plan for increase of charter capital of state-owned commercial banks, and submitting it to competent authorities for approval.

e) play the leading role and cooperate with the Ministry of Information and Communications, provincial People's Committees and information and communications agencies in speeding up performance of information dissemination tasks, and timely provision of official and accurate information on performance of policies and banking operations in general and restructuring of credit institutions associated with bad debt settlement in particular.

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h) Cooperate, exchange and provide information and data in the field of money and banking sector for competent authorities for adopting measures for preventing, limiting and dealing with violations in accordance with regulations of law.

i) Cooperate with Ministries, regulatory authorities and provincial People's Committees in directing state-owned enterprises (including state-owned economic groups, state-owned corporations and state-owned enterprises) in formulating plans and implementing the roadmap for divestment and equitization in credit institutions as prescribed.

k) play the leading role and cooperate with relevant Ministries and regulatory authorities in implementing solutions for improving capacity and efficiency of banking inspection and supervision tasks.

l) play the leading role and cooperate with the Ministry of Justice and relevant Ministries and regulatory authorities in reviewing and amending legal frameworks, mechanisms and policies on money, banking operations, restructuring and settlement of bad debts of credit institutions.

m) actively and flexibly regulate monetary policies which should be closely associated with other financial and macroeconomic policies so as to control inflation, stabilize money market, contribute to the macroeconomic stability, support the sustainable economic recovery and growth, and provide a favorable business environment for credit institutions.  Reinforce management, and enhance operational efficiency and stable development of gold trading market and foreign exchange market; strictly control credit quality for the economy, especially credit extended in risk-prone sectors such as investment, securities trading, corporate bonds, and real estate.

2. The Ministry of Finance shall:

a) play the leading role and cooperate with the Ministry of Planning and Investment, the Ministry of Justice, SBV and relevant Ministries and regulatory authorities in researching, reviewing and amending legislative documents providing regulations on increase of capital of state-owned credit institutions.

b) cooperate with SBV and the Ministry of Planning and Investment in formulating the plan for increase of charter capital of state-owned commercial banks, and submitting it to competent authorities for approval.

c) promptly provide advice for the Government about allocation or additional allocation of capital to state-owned commercial banks, especially Agribank.

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dd) research and formulate debt valuation standards (including bad debts) in order to establish legal grounds for performing and ensuring objectivity of debt valuation activities (including bad debts).

e) play the leading role and cooperate with relevant Ministries and regulatory authorities in reviewing and amending regulations on development, management and surveillance of debt trading market in order to establish a complete legal framework for trading and settlement of bad debts as well as to encourage the participation in the debt trading market. Review and amend regulations on operations of DATC in order to enhance its roles and efficiency in bad debt settlement.

g) research and establish a complete legal framework on debt securitization so as to establish legal grounds for conducting transactions on securities market and converting debts into securities for being traded in an open and transparent manner at appropriate time.

h) research and implement or submit to competent authorities solutions for enhancing capital market development with the aim at gradually developing the capital market into a key part of the financial market that is a primary medium and long-term capital channel for the economy, and reducing the dependence on banks’ loan capital.

i) direct the State Securities Commission of Vietnam (SSC) to review and amend relevant regulations with the aim to control the compliance with limits on share holdings of foreign investors and majority shareholders at joint-stock credit institutions when granting permission for offering of securities to existing shareholders, and cross-ownership between credit institutions and enterprises (when a credit institution is an enterprise’s shareholder).

3. The Ministry of Planning and Investment shall:

a) cooperate with SBV and the Ministry of Finance in formulating the plan for increase of charter capital of state-owned commercial banks, and submitting it to competent authorities for approval.

b) cooperate with the Ministry of Finance, the Ministry of Justice, SBV and relevant Ministries and regulatory authorities in researching, reviewing and amending legislative documents providing regulations on increase of capital of state-owned credit institutions.

4. The Ministry of Justice shall:

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b) research, review and amend regulations on registration of security interests, including proposed regulations on registration of mortgage of land use rights, property on land, and off-plan property on land.

5. The Ministry of Construction shall:

a) research, review and amend regulations of the 2014 Law on real estate business with a view to not applying the same requirements for transferable projects to deposition of collateral.

b) research and establish legal grounds for transfer of projects in case of disposition of collateral that is real estate projects with the aim at promoting the collateral disposition, especially settlement of bad debts of credit institutions, and ensure the consistency of such legal grounds with project mortgage requirements laid down in the 2014 Housing Law.

c) establish a perfect information system and database on housing and real estate market so as to ensure the public and transparent disclosure of information.

d) intensify inspection tasks and handling of violations against regulations on real estate business.

6. The Ministry of Public Security shall:

a) The Ministry of Public Security shall closely cooperate with SBV, other Ministries, provincial People's Committees and relevant authorities in preventing, detecting, investigating into and taking actions against violations in money and banking sector.

b) Public security agencies at all levels shall intensify their cooperation with credit institutions and VAMC to ensure security and order during seizure and disposition of collateral for debt recovery.

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d) direct investigating authorities at all levels to closely cooperate with relevant authorities and organizations to speed up the investigation, hearing and enforcement of lawsuits related to banking sector, especially fulfillment of obligations to pay debts by majority shareholders and related persons to ensure legitimate rights and interests of credit institutions and depositors, and minimize losses for the whole society.  

7. The Ministry of Information and Communications shall:

closely cooperate with Ministries, regulatory authorities, provincial People’s Committees, and SBV to direct press agencies to provide and disseminate information on policies and guidelines on money, banking operations, restructuring of credit institutions and bad debt settlement.

8. The Ministry of Natural Resources and Environment shall:

direct natural resources and environment agencies to regularly update and disclose information on transactions involving mortgage of land use rights and property on land on their websites for relevant parties’ reference.

9. The Government Inspectorate shall:

closely cooperate with SBV to perform state management tasks in banking sector, especially inspection, supervision and assurance of safety of banking operations.

10. The Commission for the Management of State Capital at Enterprises (CMSC) shall:

a) provide instructions and assistance for state-owned groups, state-owned corporations and their member units that are subjected to the management of CMSC in settling debts, especially bad debts of large-scale projects, so as to relieve financial burden for credit institutions.

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c) direct state-owned groups and state-owned corporations that are subjected to the management of CMSC to promptly formulate plans for restructuring of their affiliated credit institutions.

11. Ministries, regulatory authorities, provincial People’s Committees and relevant agencies and organizations shall, within the ambit of their assigned functions and tasks, and based on the solutions mentioned in the Scheme, perform the following responsibilities:

a) promulgate specific action plans/programs by July 01, 2022, in which objectives, duties, implementation schedule, and entities in charge of performing duties and solutions set out in this Decision must be indicated; send such action plans/programs to SBV for consolidation and monitoring.

b) make and send final reports on assessment of the implementation of the Scheme within the ambit of their assigned functions and tasks, and proposed direction and management solutions to be adopted by the Government/Prime Minister to SBV by November 30 of each year for submitting consolidated report thereon to the Prime Minister.

c) instruct and direct state-owned groups, state-owned corporations, and state-owned enterprises holding shares or stakes of credit institutions to speed up divestment in such credit institutions according to the prescribed roadmap, and bear consequences concerning credit institutions within the jurisdiction of owners in accordance with regulations of law.

d) direct state-owned groups and state-owned corporations that are subjected to the management of Ministries and regulatory authorities to promptly formulate plans for restructuring of their affiliated credit institutions.

dd) Provincial People's Committees shall direct local competent authorities to cooperate with SBV's provincial branches in managing and supervising operations of local people’s credit funds.

12. Credit institutions shall:

a) formulate plans for restructuring of credit institutions, submit them to competent authorities for approval, and assume legal responsibility for implementation thereof.

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c) Proactively and closely cooperate with, and provide information, documents and cases showing signs of violations in money and banking sector for competent authorities for investigating and taking actions in accordance with regulations of law.

d) strictly comply with regulations of law as well as guidelines of the Government and SBV on banking operations in general and restructuring of credit institutions in particular.

dd) submit adequate, timely and truthful reports to SBV on outcomes, encountered difficulties and any suggestions on restructuring of credit institutions.

Article 2. This Decision comes into force from the date on which it is signed.

Article 3. The SBV’s Governor, Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees, and Chairpersons of Boards of Directors, Chairpersons of Boards of Members, General Directors (Directors) of credit institutions, Deposit Insurance of Vietnam, and VAMC are responsible for the implementation of this Decision.

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai