Bank debt management companies are not allowed to do real estate business.

The State Bank of Vietnam (SBV) has just issued Circular No. 31/2025/TT-NHNN regulating the activities of subsidiaries and affiliates of credit institutions (CIs) in the field of debt management and asset exploitation.

Circular 31 stipulates that the debt management company of a credit institution is not allowed to do real estate business; it is only allowed to purchase collateral of bad debts from the authorized party during the process of handling collateral of bad debts to recover debt.

The total purchase price of the assets securing the bad debt shall not exceed the company's charter capital.

With real estate as collateral, the company must sell or transfer it within 5 years from the date of purchase. If it holds it beyond this period, the company cannot continue to purchase other collateral from the bad debts of the authorized party.

Regarding debt trading transactions, the company can purchase debt from the credit institution that owns the company according to the approved restructuring plan; purchase debt from another credit institution, except for debt that the parent bank or subsidiary of the parent bank has sold to that credit institution; purchase debt from another debt management company, except for debt that the parent bank or subsidiary of the parent bank has sold to that company.

The company can also sell debt to organizations and individuals, except in the case of selling to another subsidiary of the parent bank.

The debt management company must report debt trading activities to the owning credit institution (parent bank) and send financial reports and activity reports to the State Bank upon request.

Circular 31 takes effect from December 1, 2025.

Debt management companies established before the effective date of this Circular must develop a handling plan to ensure compliance with the provisions of this Circular, including at least the contents of activities that do not comply with the provisions and measures, handling plans and roadmaps to ensure compliance with the provisions of this Circular within 12 months from the effective date of this Circular.

Within a maximum period of 60 days from the effective date of this Circular, debt management companies established before the effective date of this Circular must send directly or by postal service the handling plan as prescribed in Clause 3 of this Article to the State Bank (Department of Credit Institution Management and Supervision) for monitoring and supervision.

After the time specified in Clause 3 of this Article, debt management companies that do not meet the provisions of this Circular must cease operations. Credit institutions with debt management companies shall report to the State Bank (Department of Credit Institution Management and Supervision) whether the debt management company has met the provisions of this Circular or has ceased operations .

Debt purchase and sale contracts and contracts for other transactions (if any) between debt management companies and customers signed before the effective date of this Circular shall continue to be implemented according to the signed agreements. Amendments and supplements to these contracts must comply with the provisions of this Circular.

Source: https://baodautu.vn/cong-ty-quan-ly-no-cua-ngan-hang-khong-duoc-kinh-doanh-bat-dong-san-d404280.html