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Vietnam Says Asset Company Will Start Operations in Mid-July

State Bank of Vietnam plans to start operations of its asset management company in mid-July to clean up nearly $5 billion of bad debt at lenders and accelerate the country’s banking restructuring process.

“Banks must do two parallel duties: resolve bad debts and prevent existing loans from becoming bad ones,” according to a statement on the government’s website, citing central bank Governor Nguyen Van Binh at the mid-year review with the nation’s commercial lenders.