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Summary

18 COVER STORY
UNEASE REGISTERED IN RECOVERING

COLLATERAL FROM BAD DEBTS 6 ECONOMY - POLICY
LAND LAW 2024
A number of regulations on bad debt handling that had New regulations on land finance
been introduced under the 14th National Assembly’s
Resolution No. 42/2017/QH14 in 2017 have been
passed into law under Chapter XII of the amended Law on and prices come into play
Credit Institutions 2024. This helps credit institutions have
more effective legal tools to be more proactive in handling he amended Land Law was recently passed by the
and recovering bad debts. However, in the amendment, the T 15th National Assembly (NA) at its fifth extra-
right of credit institutions to seize collateral assets is no ordinary session, and will take effect from January 1,
longer maintained. Credit institutions will therefore have 2025. The Land Law 2024 has fully institutionalized Party
to consider and strictly control credit granting from the views and policies on land management and use, and
time of assessing documents, disbursement, loan use, and includes many new points, including five key content
debt recovery, as well as the handling of collateral. groups that will have a positive impact on the field. In
According to experts, volatile, challenging, and difficult particular, land finance is a central feature of the Law that
factors cause processing times for collateral assets to has caught the attention of the business community and
lengthen at credit institutions. Therefore, the five-year term individuals involved in the market, with a balance between
as stipulated by the amended Law on Credit Institutions is financial policies and land policies. The amended Law
relatively reasonable considering the current and near abolishes the land price framework and legislates four
future conditions of the real estate market. However, there methods for determining prices. The government has
are also concerns that holding real estate for a long time assigned the Ministry of Natural Resources and
poses many risks. Environment to develop five draft decrees guiding the
implementation of the amended Law.
20 COVER STORY

Preventing consequences 9 ECONOMY - POLICY

from cross-ownership and

bank manipulation

T he risks from cross-ownership in the banking and
financial system over the years were evident in the
recent case of the Sai Gon Joint Stock Commercial
Bank (SCB) / Van Thinh Phat Group. Economist Nguyen
Tri Hieu told a / b that in order to limit cross- PROBLEMS WITH FINANCIAL
PROBLEMS WITH FINANCIAL
ownership and manipulation at banks, many regulations
MECHANISMS HINDERING SCIENCE,
have been tightened in the amended Law on Credit MECHANISMS HINDERING SCIENCE,
Institutions passed by the National Assembly on January
OG
Y
,
V
A
TECHNOL
TION
AND INNO
18. However, there remain concerns between regulation and TECHNOLOGY, AND INNOVATION
enforcement, for example tightening regulations on share
ownership ratios and credit limits can only be controlled
formally. To effectively enforce the Law, it is important that A ccording to Mr. Do Thanh Long, Chief of Office at the
cross-supervision by regulators and legal compliance by Ministry of Science and Technology (MoST), one of the
related parties be applied, as banks in the US have done. key tasks this year is to complete proposals to develop
three laws. Focusing on completing a proposal to develop a
law amending and supplementing a number of articles in the
Law on Science and Technology is the most important task.
MoST has emphasized that amending and supplementing a
number of articles in the Law to improve institutions,
overcome obstacles, and create a favorable legal corridor to
promote science, technology, and innovation suitable to
Vietnam’s conditions in the current period and the future have
become necessary. The draft proposal to develop amendments
and supplements to the Law includes five major policy groups.
4 KINH TẾ VIỆT NAM | Số 9 | Ngày 26/2/2024 www.vneconomy.vn