Decision 689/QD-TTg 2022 approving the Scheme on Restructuring the credit institution system associated with handling of non-performing loans for the 2021 - 2025 period

DECISION

Approving the Scheme on "Restructuring the credit institution system associated with handling of non-performing loans for the 2021 - 2025 period"

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration 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 Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017;

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

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

Pursuant to the Resolution No. 01/NQ-CP dated January 1, 2021 of the Government on major tasks and solutions guiding the realization of the socio-economic development plan and the State budget estimate in 2021;

Pursuant to the Resolution No. 50/NQ-CP dated May 20, 2021 of the Government on the Government's Action Program for implementation of the Resolution of the XIII^th National Party Congress;

Pursuant to the Resolution No. 99/NQ-CP dated August 30, 2021 of the Government promulgating the Program of Action of the Government of the 2021-2026 tenure for implementation of the National Assembly’s Resolution on the 2021-2025 five-year socio-economic development plan;

Pursuant to the Decision No. 986/QD-TTg dated August 8, 2018 of the Prime Minister approving the Strategy for development of Vietnam’s banking sector through 2025, with orientations toward 2030;

At the proposal of the Governor of the State Bank of Vietnam.

DECIDES:

Article 1. To approve the Scheme on "Restructuring the credit institution system associated with handling of non-performing loans for the 2021 - 2025 period" (hereinafter referred to as the Scheme) with the following main contents:

I. VIEWPOINTS

1. Restructuring the credit institution system associated with handling of non-performing loans is an objective requirement, inheriting the results of the previous period, overcoming shortcomings, limitations and proactively responding to challenges in the new period; being implemented comprehensively, carefully, step by step, ensuring compliance with the socialist-oriented market principle, openness and transparency; making the most of the credit institutions' self-handling resources; maintaining stability and safety, not letting the credit institution system fall into a state of crisis leading to collapse; ensuring the legitimate interests of depositors.

2. Considering improvement of the legal and institutional framework as a key solution to create a solid legal basis, removing difficulties and obstacles arising in realities to restructure the credit institution system and handle poor credit institutions safely, effectively and transparently.

3. Mobilizing and using all legal resources, including social resources, resources from credit institutions and State resources to restructure poor credit institutions and handle non-performing loans; encouraging and attracting qualified domestic and foreign investors to participate in restructuring the credit institution system.

4. Developing the credit institution system with diversified ownership and types, in which the State commercial banks play a key and leading role in the market, having sufficient domestic and international competitiveness; encouraging and creating conditions for credit institutions with sufficient financial and administrative capacity to participate in consolidation, merger, and acquisition of credit institutions with small scale or potential risks in their operations.

5. Operating monetary policy in a proactive and flexible manner with a strict combination of fiscal policy and other macroeconomic policies in order to control inflation, contribute to macroeconomic stability, and support the recovery of sustainable economic growth, creating a premise for the process of restructuring credit institutions associated with handling of non-performing loans, improving the beliefs for the people, domestic and international investors in the banking sector.

II. OBJECTIVES

1. Overall objectives

a) Create a clear and substantive change in the restructuring of the credit institution system associated with handling of non-performing loans; strive to reduce the number of credit institutions, basically handle poor banks, prevent new poor banks from arising, and strive for a healthy and sustainable development of credit institution system by 2025.

b) Develop the credit institution system in the direction that domestic credit institutions play a key role, operate in a healthy, quality, efficient, open and transparent manner, meet the standards of banking safety in accordance with the law and approach international practices, develop towards the Group of 4 leading countries in ASEAN.

c) Step up the handling of non-performing loans, improve credit quality, prevent and minimize newly arising non-performing loans; improve the financial capacity of credit institutions; prevent cross-investment, cross-ownership and manipulative and dominant ownership in relevant credit institutions.

2. Specific objectives

a) Organize the pilot implementation of Basel II application according to advanced method at commercial banks where the State holds dominant shares and joint-stock commercial banks that have good governance and have completed the application of Basel II according to the standard method by the end of the year 2025; strive that the capital safety ratio (CAR) of commercial banks will reach at least 10 - 11% by 2023; reach at least 11 - 12% by 2025.

b) The credit institutions must take measures to ensure the amount of charter capital by 2025 as follows:

- For existing credit institutions (excluding commercial banks, finance companies, financial leasing companies) which are weak, poor/specially controlled/implement the restructuring plan approved by the competent authorities):

+ For commercial banks: (i) Group of domestic commercial banks with financial potential, competitiveness, and large scale: the charter capital reaches at least 15,000 billion dong; (ii) Group of domestic commercial banks with financial potential, competitiveness, small and medium scale and commercial banks with foreign capital: the charter capital reaches at least 5,000 billion dong;

+ For finance companies: the charter capital reaches at least 750 billion dong;

+ For financial leasing companies: the charter capital reaches at least 450 billion dong.

- For commercial banks, finance companies, financial leasing companies which are weak, poor/specially controlled/implement the restructuring plan approved by the competent authorities: capital increase plan shall comply with the approval of the competent authorities.

c) Strive to have at least two to three commercial banks in the top 100 largest banks (in terms of strength criteria) in Asia; complete the listing of shares of joint-stock commercial banks on the Vietnamese stock market and strive to have one to two banks listed in international stock markets.

d) Develop digital banking models, increase convenience, customer experience and realize the goal of financial inclusion and sustainable development on the basis of promoting the application of new and advanced technology in management, administration and providing products and services in the direction of automating processes, optimizing business operations.

dd) Strongly applying the achievements of the Industrial Revolution 4.0 to upgrade and develop the payment infrastructure and cashless payments services, to meet the payment needs in a convenient and efficient way of organizations and individuals; ensure security, safety and confidentiality in the operation of the cashless payment and protect the legitimate rights and interests of payment service users.

e) Strive to raise the proportion of revenues from non-credit services to total revenues of commercial banks to about 16 - 17% by the end of 2025. Increase the proportion of bank credit capital invested in low-carbon production and consumption sectors.

g) Develop the people's credit fund system in accordance with the objectives and guidelines of the cooperative credit institution in accordance with the provisions of law and international practices; operate safely, efficiently, stably and sustainably, meet capital needs, improve financial access of people's credit fund members, towards the purpose of mutual assistance among members to serve production, business, and improve living standards, especially in rural, deep-lying, remote and difficulty-hit areas.

h) Develop microfinance institution system with safe, effective and sustainable operation, aiming to serve the poor, low-income earners, women and micro-enterprises with diversified, flexible and appropriate financial products and services, contributing to the implementation of the policy of the Party and State on ensuring social security and sustainable poverty reduction.

i) Complete the model, functions and operating mechanism of the cooperative bank with sufficient financial capacity, enhance the capacity of management, administration, control, safe, effective and sustainable operation to perform well its role as the bank of all people's credit funds (implementing system connectivity, providing financial support, regulating capital, ensuring safety of the system of people's credit funds), support and promote the development of other types of collective economy as cooperatives nationwide.

k) Strive that by the end of 2025, the on-balance sheet non-performing loans ratio of the credit institution system, non-performing loans sold to Vietnam Asset Management Company (VAMC) which have not been handled, unresolved, recovered and potential non-performing loans are less than 3% (excluding poor commercial banks).

III. MAJOR TASKS AND SOLUTIONS

1. General solution group

a) Perfect the legal framework on currency, banking operations, for restructuring and handling non-performing loans on the basis of fully observing the rules of the market economy in conformity with international practices, and conditions of Vietnam.

- Regarding the legal framework for restructuring and handling non-performing loans of credit institutions:

+ Research, review, amend and supplement the Law on the State Bank of Vietnam, the Law on Credit Institutions, the Law on Deposit Insurance and relevant legal documents in the following directions: (i) Research, develop and supplement support mechanisms for credit institutions to restructure poor credit institutions to minimize negative impacts on finance and operations; (ii) Research and supplement functions and tasks of Vietnam Deposit Insurance to participate in restructuring poor credit institutions; (iii) Research and develop standards for the valuation of debts (including non-performing loans) in order to create a legal basis for debt valuation activities, ensuring objectivity in the valuation of debts (including non-performing loans).

+ Review, amend, supplement and complete regulations on the operation of VAMC and Debt and Asset Trading Company (DATC) to strengthen the role and effectiveness of handling non-performing loans of VAMC, DATC.

- Regarding the policy to ensure the safety of banking operations, inspection and supervision:

+ Research, amend and supplement current regulations on legal capital level of credit institutions, ensuring feasibility when implementing.

+ Review, research, amend and supplement regulations on preventing cross-ownership, preventing the abuse of management, governance rights and major shareholder rights to manipulate the activities of credit institutions in the direction of reducing the ratio held by 1 shareholder, shareholder and related person of the shareholder to limit the domination, acquisition and ensure the publicity of the credit institution.

+ Review, amend and supplement regulations and provide guidance on financial and accounting regimes so that credit institutions can apply international financial reporting standards (IFRS) in accordance with the Scheme on application of financial reporting standards in Vietnam issued under the Decision No. 345/QD-BTC dated March 16, 2020 of the Minister of Finance.

+ Continue to improve the legal framework, regulations on operational safety, management, administration, risk management and other regulations for the people's credit fund system in accordance with the (amended and supplemented) Law on Credit Institutions.

- Regarding regulations on licensing new establishment and development of credit institution network: Review and supplement current regulations on licensing, organization and operation conditions (especially criteria on finance, capacity of management, administration and legal compliance) of credit institutions in general, wholly foreign-owned credit institutions, foreign bank branches in Vietnam in particular.

- Regarding regulations on establishment and operation of digital banking, digital transformation and payment activities: Research, review and propose amendments and supplements to gradually improve the legal basis for the formation and development of digital banking models, payment activities and relevant legal regulations in order to creating favorable conditions for digital banking transformation and bank payment activities.

- Regarding regulations on green credit, green banks aim to increase the proportion of bank credit capital invested in low-carbon production and consumption sectors: Research and issue preferential policies, mechanisms to support and encourage credit institutions to promote green credit, green bank, low-carbon production and consumption sectors; develop cashless payment on the basis of taking advantage of 4.0 scientific and technological achievements for greening banking activities.

- Regarding the legal framework to support the restructuring and handling of non-performing loans:

+ Research, review, amend and supplement regulations on debt trading market development and management and supervision of debt trading market, encouraging parties to participate in debt trading market to complete the legal framework for buying, selling and handling non-performing loans, creating favorable conditions for development of the debt trading market.

+ Research, review, amend and complete legal documents on capital increase for credit institutions with state capital.

+ Continue to review, amend and complete legal documents on restructuring credit institutions and handling non-performing loans of credit institutions, creating consistency and synchronization in the implementation process.

b) Support solutions

- Regarding the monetary policy administration solution:

+ Flexibly and synchronously administer monetary policy tools, in harmonious coordination with fiscal policy and other macroeconomic policies to control inflation, contributing to maintaining macroeconomic stability, supporting sustainable economic growth.

+ Actively administer credit solutions in order to control the scale and growth of credit according to oriented goals, associated with improvement of credit quality and process of restructuring credit institutions. Direct credit institutions to increase credit effectively, focus credit on production and business fields and priority fields; strictly control credit in high-risk areas. Continue to implement solutions to remove difficulties in accessing bank credit, create favorable conditions in bank credit capital loans for enterprises and people, contribute to repelling black credit.

+ Research and have appropriate solutions to encourage banks to implement Basel II according to advanced methods, aiming to deploy Basel III when credit institutions have sufficient financial and human conditions.

- Regarding enhancing efficiency and effectiveness of banking inspection and supervision; improving the capacity and quality of the banking inspection and supervision team:

+ Strengthen and renovate inspection and examination toward: Making fast and strong transition from compliance inspection to risk-based inspection, closely associated with banking supervision, gradually applied uniformly throughout the credit institution system and foreign bank branches; focusing on targeted thematic inspection and focusing on areas, subjects and contents related to great risks and high risk of unsafety. Increase investment in technology to support banking inspection and supervision.

+ Continue to innovate supervision toward: (i) Improving the efficiency of micro-safety supervision and macro-safety supervision on the basis of deploying new risk monitoring tools and methods associated with promoting operation and application of technical infrastructure, information technology, database on the operation of the credit institution system; (ii) Building and developing a database to serve inspection, supervision and management activities, software and tools to support inspection and supervision activities (with emphasis on effectively exploiting existing databases of the banking sector); (iii) Improving the ability to detect, analyze, give early warning and propose measures to prevent risks and crises that may affect the safety and stability of the monetary and banking system.

+ Develop and implement a plan to recruit and supplement human resources for the team of banking inspectors and supervisors; strengthen professional training and further training, and improve the professional capacity of bank inspectors and supervisors.

2. Group of solutions to restructure the credit institutions

The credit institutions develop plans and organize the implementation of appropriate solutions for each group/block of credit institutions, including: increasing charter capital, raising capital safety ratio to enhance financial capacity and safety of banking operations, improving governance, administration, credit quality, etc.; encouraging participation in the purchase, sale, consolidation and merger of credit institutions on a voluntary basis in order to increase the scale, scope of operation and competitiveness; deploying and applying Basel II according to advanced method, aiming to reach the development level of the Group of 4 leading countries in ASEAN by 2025. The weak and poor credit institutions shall apply handling measures according to the provisions of law to ensure the stability of the credit institution system, political security and social order and safety. In which, focuses on implementing the following key solutions:

a) Commercial banks with more than 50% of charter capital held by the State (excluding banks with compulsory purchase) (State-owned commercial banks):

- Develop a plan to improve the efficiency and quality of operations and organize the implementation of solutions to increase charter capital to improve and enhance financial capacity, pilot application of Basel II according to the advanced method (only for Vietnam Bank for Agriculture and Rural Development according to the standard method), in which: (i) In the 2022 - 2023 period: Increase charter capital from profit after tax, after setting up funds for the 2021 - 2023 period for joint-stock commercial banks where the State holds more than 50% of charter capital and from the state budget for Vietnam Bank for Agriculture and Rural Development; (ii) In the 2024 - 2025 period: Research and advise competent authorities to increase capital in accordance with the law, ensuring system safety.

- Vietnam Bank for Agriculture and Rural Development actively develops a plan for comprehensive restructuring in order to improve the efficiency and quality of its operations and play a leading role in the field of agricultural and rural credit; increase charter capital according to the plan approved by the competent authorities; take steps to carry out equitization after the Ministry of Finance completes approving the plan on arrangement of house and land facilities of the bank; list shares on the domestic stock market.

b) Commercial banks with compulsory purchase:

- Implement the restructuring according to the plan approved by the competent authorities, in accordance with the provisions of law.

- Strengthen internal inspection and control in banking operations, promptly detect, prevent and handle problems and risks in the banking operations.

- Step up the handling of non-performing loans; debt classification according to the provisions of law; accelerate and increase the efficiency of the handling and collection of outstanding debts and assets for the bank.

c) Joint-stock commercial banks, finance companies, financial leasing companies:

- On the basis of monitoring data, inspection and evaluation results of independent auditors and ranking results, joint-stock commercial banks, finance companies and financial leasing companies are classified into 03 groups, including: Group 1: Group of joint-stock commercial banks, finance companies and financial leasing companies with financial potential, competitiveness, and large scale; Group 2: Group of joint-stock commercial banks, finance companies and financial leasing companies with financial potential, competitiveness, and small and medium scale; Group 3: Group of joint-stock commercial banks, financial institutions and financial institutions with weak, poor, potentially dangerous, unsafe operation to implement the following solutions:

+ Continue to develop and improve financial capacity in terms of both scale and quality, operational efficiency, competitiveness under the market mechanism, publicity, transparency, and fully meet the standards of management and safety of banking operations in accordance with the law and international practices; apply and provide modern banking products and services;

+ Increase capital and improve the quality of the credit institutions' equity capital to ensure that the charter capital level is not lower than the legal capital level as prescribed by law and raise the capital safety ratio according to international standards;

+ Encourage participation in purchase, sale, consolidation and merger of credit institutions on a voluntary basis in order to increase its scale, scope of operation and competitiveness;

+ Implement and apply Basel II according to advanced methods, aiming to reach the development level of the Group of 4 leading countries in ASEAN by 2025;

+ The weak and poor credit institutions may consider applying early intervention, special control and other measures in accordance with law, ensuring stability of the credit institution system, political security and social order and safety.

d) Cooperative banks, people's credit funds and microfinance institutions:

- Improve the financial capacity of the cooperative banks, including the increase of charter capital for the cooperative banks from legal sources; improve the role and responsibilities of the cooperative banks in inspecting, monitoring and supporting the operation of the people's credit fund system; strengthen the ability to regulate capital, inspect and supervise the use of loan capital of the people's credit funds; proactively and actively participate in handling people’s credit funds that are poor, face difficulties or show signs of having unsafe operations.

- Continue to correct, consolidate and gradually reduce the number of people's credit institutions (especially poor people's credit funds) in order to ensure that the people's credit unions operate in accordance with the objectives and principles of the type of credit institutions as cooperatives, and improve the level of safety, effectiveness, stability and sustainability of the people's credit funds, under local needs, scale, location and economic growth rate. In which:

+ Review, evaluate and classify people's credit funds into 02 groups: (i) Group of people's credit funds group with normal operation; (ii) Group of poor people's credit funds group with many potential risks that may affect the safety of banking operations, security and social order in the locality.

+ For a number of poor people's credit funds, specially controlled people's credit funds with small scale (small amount of deposits and depositors) or people's credit funds without deposits or with deposits within the payment limit of deposit insurance, it may consider allowing pilot handling of these people's credit funds through the bankruptcy option after fully assessing the impact and risk on political security and system safety.

- Urgently perfect the legal system, gradually develop safe and sustainable microfinance institutions in line with market orientation; ensure access to diversified and quality financial services for low-income people, households and micro enterprises; implement the guidelines of the Party and the State on ensuring social security and sustainable poverty reduction. In which:

+ Complete the management mechanism and legal corridor for microfinance institutions and microfinance programs and projects, creating favorable conditions for the operation of microfinance institutions.

+ Create favorable conditions for linking activities of various types of credit institutions with activities of microfinance institutions.

dd) Foreign credit institutions (joint venture, with 100% foreign capital):

Continue to create conditions for foreign credit institutions to do business and compete equally with domestic credit institutions; encourage foreign credit institutions to participate in supporting and handling difficulties and weaknesses of domestic credit institutions; encourage foreign credit institutions to take the lead in developing and applying modern technologies, bringing new products and services to the Vietnamese market; support domestic credit institutions in accessing new processes, products and technologies to meet the increasingly diverse needs of customers on products and services.

3. Group of solutions to handle non-performing loans

- Assess the quality and recoverability of debts to take appropriate measures; make setting up and use risk provisions to handle non-performing loans in accordance with the law; supplement and complete legal documents of security assets; implement debt collection and settlement of security assets; strictly control and reduce operating costs; continue to implement measures to prevent and minimize arising non-performing loans and improve credit quality; proactively coordinate with local authorities and competent state agencies, especially the Public Security agencies, People's Courts, and judgment enforcement agencies at all levels in the process of handling security assets for debt recovery, in order to ensure maximum recovery of debts and limit losses to credit institutions.

- Submit to competent authorities for consideration and grant of additional charter capital to reach 10,000 billion dong in the 2022 - 2025 period to improve financial capacity and operational efficiency of VAMC.

- Strengthen coordination among ministries, sectors and related agencies in handling non-performing loans of credit institutions. The Chairpersons of People's Committees of centrally-run cities and provinces shall strengthen directing local governments at all levels and relevant agencies to create favorable conditions for local credit institutions in handling non-performing loans and handling security assets of non-performing loans, especially assisting in the implementation of local administrative procedures to handle non-performing loans, security assets, legal procedures related to real estate projects as security assets of the bank to gradually remove difficulties, handle security assets for debt recovery; create conditions for credit institutions to quickly handle security assets of non-performing loans related to cases being handled locally in accordance with law.

IV. IMPLEMENTATION RESOURCES

Mobilize and use all resources (including social resources and State resources to support restructuring of poor credit institutions and handling of non-performing loans) including: (1) source from setting aside risk provisions, handling of non-performing loans, collateral for non-performing loans; (2) source from performing the central bank's function of issuing money; (3) professional reserve fund of deposit insurance; (4) resources from the state budget; (5) other legal resources.

V. IMPLEMENTATION ORGANIZATION

1. The State Bank of Vietnam (SBV)

a) Assume the prime responsibility for, and coordinate with concerned ministries, sectors and localities in, implementing the Scheme and promulgating specific programs and action plans, which clearly defines specific objectives, tasks and solutions according to its competence and implementation schedule, the unit in charge of ensuring the effective implementation of the Scheme.

b) Assume the prime responsibility for, and coordinate with relevant units in, submitting to the Prime Minister to consolidate the Steering Committee for restructuring the credit institution system.

c) Urge and coordinate with relevant ministries, agencies, localities and organizations to implement the Scheme; periodically report to the Prime Minister before every December 31 on progress, results, difficulties and problems and propose solutions to handle arising problems beyond their competence.

d) Direct and guide credit institutions to develop and submit to competent authorities for approval of the restructuring plan associated with handling of non-performing loans (restructuring plan) of the credit institutions; supervise the implementation of the plan on restructuring credit institutions.

dd) Assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Planning and Investment in, formulating and submitting to competent authorities the plan to increase charter capital of the State-owned commercial banks.

e) Assume the prime responsibility for, and coordinate with the Ministry of Information and Communications, the People's Committees of centrally-run cities and provinces, and information and communication agencies to strengthen information and communications, propagandize, promptly provide official and accurate information on the results of policy administration, banking operations in general and the restructuring of the credit institution system associated with handling of non-performing loans in particular.

g) Coordinate with the Ministry of Finance and relevant agencies in management, inspection and supervision of insurance and securities activities to prevent and handle violations of the law on ownership and transfer of shares, causing adverse impacts on the stock market and risks for credit institutions.

h) Coordinate, exchange and provide information and data in the monetary and banking sectors with functional agencies to take measures to prevent, limit and handle violations in accordance with law.

i) Coordinate with ministries, sectors and People's Committees of centrally-run cities and provinces in directing state-owned enterprises (including economic groups, state corporations and state-owned enterprises) to build plan and implement the roadmap for divestment of contributed capital and share capital at credit institutions according to regulations.

k) Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, implementing solutions to improve the capacity and efficiency of banking inspection and supervision.

l) Assume the prime responsibility for, and coordinate with the Ministry of Justice and relevant ministries and sectors in, reviewing, amending and supplementing the legal framework, mechanisms and policies on monetary, banking operations, restructuring and handling of non-performing loans of credit institutions.

m) Actively and flexibly administer monetary policy, with strict combination of fiscal policy and other macro policies in order to control inflation, stabilize the money market, and contribute to stabilizing the macro-economy, support the recovery of sustainable economic growth, and create a favorable business environment for credit institutions. Strengthen management, improve operational efficiency and stable development of the gold and foreign exchange markets; strictly control credit quality for the economy, especially credit for potentially risky fields such as investment, securities trading, corporate bonds, and real estate.

2. The Ministry of Finance

a) Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Justice, the State Bank, and relevant ministries and sectors in, researching, reviewing, amending and completing legal documents related to the regulations on capital increase for credit institutions with state capital.

b) Coordinate with the State Bank and the Ministry of Planning and Investment in formulating and submitting to the competent authorities a plan to increase charter capital of the State-owned commercial banks.

c) Urgently advise the Government to arrange, provide capital and supplement capital for the State-owned commercial banks, especially Vietnam Bank for Agriculture and Rural Development.

d) Assume the prime responsibility for, and coordinate with the State Bank in reviewing, amending and supplementing regulations on guidance on financial and accounting regimes so that credit institutions can apply international financial reporting standards (IFRS) in accordance with the Scheme on application of financial reporting standards in Vietnam issued under the Decision No. 345/QD-BTC dated March 16, 2020 of the Minister of Finance.

dd) Research and develop standards for debt valuation (including non-performing loans) in order to create a legal basis for debt valuation activities, ensuring objectivity in the debt valuation (including non-performing loans).

e) Assume the prime responsibility for, and coordinate with relevant ministries and sectors in, reviewing, amending and supplementing regulations on debt trading market development and management and supervision of the debt trading market to complete the legal corridor for the purchase, sale and handling of non-performing loans as well as mechanisms to encourage parties to participate in the debt trading market. At the same time, review, amend, supplement and complete regulations on DATC's activities to strengthen the role and effectiveness of handling of non-performing loans.

g) Research and perfect the legal framework for debt securitization, contributing to creating a legal basis for performing transactions on the stock market and converting debts into securities for open and transparent transactions at an appropriate time.

h) Research, implement or submit to the competent authorities solutions to promote capital market development, gradually turning the capital market into an important component of the financial market, the main medium and long-term capital channel for the economy, and reducing dependence on bank credit capital sources.

i) Direct the State Securities Commission to review and amend relevant regulations to control the compliance with the ownership limit of foreign investors and major shareholders at joint-stock credit institutions when issuing licenses for the offering of securities in the form of an offering to existing shareholders and cross-ownership between the credit institution and the enterprise (when the credit institution already owns shares of the enterprise).

3. The Ministry of Planning and Investment

a) Coordinate with the State Bank and the Ministry of Finance in formulating and submitting to the competent authorities a plan to increase charter capital of the State-owned commercial banks.

b) Cooperate with the Ministry of Finance, the Ministry of Justice, the State Bank and relevant ministries and sectors in researching, reviewing, amending and completing legal documents related to the regulations on capital increase for credit institutions with state capital.

4. The Ministry of Justice

a) Continue to review the Law on Enforcement of Civil Judgments and related documents; direct and guide civil judgment enforcement agencies at all levels to remove difficulties and obstacles. At the same time, coordinate with VAMC and credit institutions to execute judgments and decisions that take effect.

b) Research, review, amend and complete legal regulations on registration of security interests, in which, propose to improve regulations on registration of mortgage of land use rights and land-attached assets property attached to future land.

5. The Ministry of Construction

a) Research, review, amend and supplement the provisions of the 2014 Law on Real Estate Business in the direction of not applying the general regulations on conditions for projects to be transferred in the case of disposal of security assets.

b) Research and develop a legal basis for project transfer in case the security assets are real estate projects in order to promote asset disposal, especially handling of non-performing loans of credit institutions, ensure the synchronism and consistency with the regulations on project mortgage conditions of the 2014 Law on Housing.

c) Complete the information system and database on housing and real estate market, ensuring public and transparent information.

d) Strengthen the inspection, examination and handling of violations in the field of real estate business.

6. The Ministry of Public Security

a) The Ministry of Public Security shall closely coordinate with the State Bank, ministries, sectors, People's Committees of provinces and centrally-run cities and relevant agencies in prevention, detection, investigation and handling of violations of the law in the field of money and banking activities.

b) The Public Security agencies at all levels shall strengthen coordination with credit institutions, VAMC to ensure security and order in seizing and handling security assets for debt recovery.

c) Investigate and verify cases of credit institutions’ increase in charter capital in contravention of law provisions; detect cases of excess share ownership through other organizations and individuals and promptly provide information to the State Bank for handling in accordance with law.

d) Direct investigation agencies at all levels to closely coordinate with relevant agencies and organizations to speed up the investigation, trial and strict judgment enforcement for banking-related cases, especially fulfilling the debt repayment obligations of major shareholders and related persons to ensure the legitimate rights and interests of credit institutions and depositors and minimize losses of the whole society.

7. The Ministry of Information and Communications

Closely coordinate with relevant ministries, agencies, organizations, the People's Committees of centrally-run cities and provinces and the State Bank of Vietnam to direct press agencies to inform and propagate guidelines and policies on monetary, banking activities, restructuring of the credit institution system and handling of non-performing loans.

8. The Ministry of Natural Resources and Environment

Direct natural resources and environment agencies to regularly update and publicize information on mortgage transactions of land use rights and properties on land on the website system of natural resources and environmental agencies to stakeholders.

9. The Government Inspectorate

Closely coordinate with the State Bank in the state management of the banking sector, especially in the inspection, examination, supervision, and safety assurance of banking operations.

10. The Committee for Management of State Capital at Enterprises

a) Direct and assist state-owned groups, corporations, and member units under the management of the Committee for the Management of State Capital at Enterprises to handle debts, especially non-performing loans in the group of large projects to reduce financial pressure on credit institutions.

b) Direct state-owned groups and corporations under the management of the Committee for the Management of State Capital at Enterprises to develop plans and roadmaps to reduce the ownership ratio at credit institutions in order to comply with provisions of the law.

c) Direct state-owned groups and corporations under the management of the Committee for the Management of State Capital at Enterprises to urgently develop a plan to restructure credit institutions under state groups and corporations.

11. The Ministries, the sectors, the People's Committees of centrally-run cities and provinces and the relevant agencies and organizations shall, based on their functions, tasks and solutions in the Scheme, implement the following contents:

a) Before July 1, 2022, issue specific programs and action plans; which clearly define the objectives, tasks, implementation schedule, the unit in charge, and include them in the work program to perform the tasks and solutions set out in this Decision; send it to the State Bank of Vietnam to summarize and monitor the implementation organization.

b) Summarize and evaluate the implementation of the Scheme within the scope of assigned functions and tasks and propose solutions for direction and administration of the Government and the Prime Minister, and send it to the State Bank of Vietnam before every November 30 to summarize and report to the Prime Minister.

c) Guide and direct state-owned groups, corporations, state-owned enterprises that own shares and contributed capital in credit institutions to accelerate the divestment of capital at credit institutions according to the schedule and take responsibility for handling consequences related to credit institutions under the responsibility of the owner in accordance with the law.

d) Direct state-owned groups and corporations under the management of ministries and sectors to urgently develop a plan to restructure credit institutions under state groups and corporations.

dd) The People's Committees of the centrally-run cities and provinces shall direct functional agencies in their localities to coordinate with the State Bank's branches in managing and supervising the activities of the people's credit funds in the locality.

12. The Credit institutions

a) Formulate and submit to competent authorities for approval and take full responsibility before law for the implementation of the plan on restructuring credit institutions.

b) Ensure the stability of operation and safety of State assets and the legitimate interests of the people in the process of restructuring.

c) Actively coordinate closely, provide information, documents and cases with signs of violations of the law in the field of currency and banking activities to functional agencies for investigation and handling in accordance with law.

d) Strictly abide by the provisions of law and the direction of the Government and the State Bank of Vietnam on banking activities in general and the restructuring of credit institutions in particular.

dd) Report fully, promptly and honestly to the State Bank of Vietnam on results, difficulties and problems, and suggestions and recommendations (if any) on the implementation of the restructuring of credit institutions.

Article 2. This Decision shall take effect from the date of signing.

Article 3. The Governor of the State Bank of Vietnam, the Ministers, the heads of the ministerial-level agencies, the heads of the Governmental agencies, the Chairpersons of the People's Committees of centrally-run cities and provinces and the Chairpersons of the Boards of Directors, the Chairpersons of the Members' Councils, the General Directors (Directors) of credit institutions, Vietnam Deposit Insurance, and VAMC shall take responsibilities for implementation of this Decision.