The State Bank of Vietnam (SBV) has just issued Circular No. 31/2025/TT-NHNN regulating the activities of subsidiaries and affiliated companies of credit institutions in the field of debt management and asset exploitation (Circular 31).
Circular 31 stipulates that debt management companies of credit institutions are not allowed to engage in real estate business; they are only permitted to purchase collateral assets of non-performing loans from the authorizing party during the process of handling collateral assets of non-performing loans to recover the debt.
The total purchase price of the collateral securing the non-performing loans 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 is not allowed to purchase additional collateral from the principal's non-performing loans.
Regarding debt trading transactions, the company may purchase debt from the credit institution that owns the company according to the approved restructuring plan; purchase debt from other credit institutions, except for debt that the parent bank or its subsidiary has sold to that credit institution; and purchase debt from other debt management companies, except for debt that the parent bank or its subsidiary has sold to that company.
The company may also sell debt to organizations or individuals, except in cases where it is sold to another subsidiary of the same parent bank.
Debt management companies must report their debt trading activities to the owning credit institution (parent bank) and submit financial statements and operational reports to the State Bank of Vietnam upon request.
Circular 31 takes effect from December 1, 2025.
Source: https://vietnamnet.vn/cong-ty-quan-ly-no-khong-duoc-kinh-doanh-bat-dong-san-2449287.html
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