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Vietnam will have another AMC
Real estate news By VietNamNet Bridge
17:01' 22/10/2007
The Deposit Insurance of Vietnam (DIV) is considering setting up an AMC (asset management company) of its own. This will be the second company of its kind in Vietnam. DIV is drawing up the project on calculating insurance premiums based on the risks of credit institutions, which mentions the establishment of an AMC. DIV is consulting with other authorities on the project before it is submitted to the Prime Minister in the fourth quarter of 2007. If the proposal by DIV is accepted, Vietnam will have two AMCs as the Ministry of Finance is now also running an AMC, named the Debt and Asset Trading Company (DATC), which has the chartered capital of VND2tril.
When asked if there would be overlapping with the existence of two companies of the same kind, Bui Khac Son, Director General of DIV, said that in the world, the AMC always belongs to the deposit insurance agency since it is a part of the job of the deposit insurance agency. According to Mr Son, in the last three years, the total debt turnover DATC could make was VND700bil only, a humble figure, 2/3 of which was carried out under the instruction of the government, while the remaining 1/3 was purchased at low prices. “We cannot say DATC has been operating under the market-oriented scheme. In debt trading, the taboo is using state-sourced money, while DATC mainly uses state-sourced money. Our AMC will operate under a quite different mode, the market oriented scheme,” Mr Son said.
DIV said that it would give credit ratings to banks based on the database on business results, audited information and the figures DIV itself can get from its supervision. Mr Son said that DIV may have to use several hundred criteria to rank banks. However, according to international practice, DIV will not make public the rankings in order to avoid bad impacts on banks’ operations, and ensure equality in business among banks. The results of the rankings will only be provided to the State Bank of Vietnam and leaders of commercial banks. The information about banks’ business performances to date mostly comes from the business reports provided by commercial banks themselves and auditing firms.
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