Scientific Conference on Development of Debt Trading Market in Vietnam

13:47-04/05/2018

On 19th December 2017, in Ho Chi Minh City (HCMC), a scientific conference titled "Conditions for the formation and development of a debt trading market in Vietnam" was organized by the Institute of Policy and Development (Ministry of Planning and Investment).

Attending the conference were Mr. Dao QuocTinh - Member of the Board of Directors, General Director of Deposit Insurance of Vietnam, Mr. Hoang Xuan Hoa - Director of Economic Department, Party Central Economic Commission, Mr. Dao Van Hung - Director of Institute of Policy and Development underthe Ministry of Planning and Investment, Ms. Le Thi Kim Xuan–Chief Representative of the Vietnam Banks Association in Ho Chi Minh City, Mr. Nguyen Hoang Minh - Deputy Director of the State Bank of Vietnam- Ho Chi Minh City Branch along with the researchers and lecturers of the HCMC University of Economics, HCMC University of Law, National Economics University, University of Transport and Communications, University of  Economics and Business under the Vietnam National University– and HCMC Banking Academy.

Speaking at the conference, Assoc. Prof., Dr. Dao Van Hung emphasized that bad debts have resulted in many complex problems including potential risks and negative consequences being a major cause of financial crises and economic distresses. With reference to international experiences and some published study results, the conference made a list of issues  and solutions for developing a debt trading market in Vietnam in a new context with an aim to fundamentally solve bad debts, create sustainable stability for the operation and development of the financial and monetary markets.

At the conference many banking, economic and financial experts gave presentations   on the topics of "Developing a debt trading market to effectively handle bad debts”, International experiences on dealing with bad debts– the cases of Thailand, Malaysia, China, Japan, South Korea, etc.; policy implications and a series of measures that Vietnam should implement; the pros and cons of debt securitization, international experiences of securitization and the application in Vietnam; analyzing the role of the bond market in and the macro risks to the economy, thus identifying factors and barriers for developing Vietnam’s bond market; reviewing the situation of credit institutions handling bad debts and some policy solutions for developing a debt trading market in Vietnam. Favorable conditions and challenges in the process of dealing with bad debts in HCMC were also discussed in a detailed manner, and then 07-step suggestion made for the development of a debt trading market in Vietnam.

In general, the contents presented at the conference were valuable for experts, managers, regulators, researchers and lecturers in their practical activities. Then, they can help to fundamentally solve bad debts and create the stability of the operation and development of the financial and monetary markets in Vietnam.

Research and InternationalCooperation Department