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Abstract

The State Bank has issued Circular No. 18/2022/TT-NHNN amending and supplementing certain provisions of Circular No. 09/2015/TT-NHNN regulating the activities of buying and selling debts of credit institutions. Effective from February 9, 2023, Circular No. 18/2022/TT-NHNN is attracting the attention of many enterprises and banks in the process of implementation with new regulations. This article analyzes and clarifies the amendments and new supplements related to the trading of debts of credit institutions. The formation and development of the debt trading market, specifically bad debts of enterprises, are objective requirements in Vietnam today. The absence of a debt trading market is considered a major bottleneck in the current bad debt resolution process. According to the Economic Committee of the National Assembly, bad debts in the banking system in 2017 were below 3%, but in reality, bad debts throughout the economy are still high. However, the debt trading market still faces many limitations and requires adjustments to achieve higher efficiency. The activity of buying and selling debts of commercial banks in Vietnam is gradually becoming an objective necessity for the development of the economy. Debt trading is a very new field in Vietnam, but in essence, it is a fundamental economic activity in commercial banks. However, in recent years, the debt trading market has not truly developed, lacking competition among debt buyers, with low debt handling experience, and failing to meet market expectations with a large amount of bad debts to be resolved. This somewhat reduces the demand for debt trading of commercial banks with bad debts, hampering the development of the debt trading market of commercial banks.
Keywords: Debt Trading Market, Bad Debts, Vietnam, Commercial Banks.