Everyone is afraid of responsibility, and the buying and selling of bad debts is "stuck".

To date, VAMC has only purchased 2% of the approximately 52,000 billion VND (equivalent to 2.4 billion USD) of non-performing loans from banks since 2013.

In an article published on Bloomberg on August 8th, the news agency reported that the Vietnamese government may change its principles to expedite the sale of bad debts – which are hindering economic growth.

Speaking to the American news agency, Mr. Nguyen Duc Kien, Vice Chairman of the National Assembly's Economic Committee, said, "Currently, it seems everyone is afraid of taking responsibility for causing damage to the state, and therefore, no one dares to make any decision to sell the debt at a low price." According to Mr. Kien, "therefore, government agencies are discussing changing current regulations to speed up the sale of bad debts."

Mr. Kien added that the new feature here is that VAMC will sell bad debts at a low price to attract investors. Since its establishment, VAMC has resolved 996 billion VND of bad debts, but did not disclose how much of that bad debt was sold.

According to Bloomberg's assessment, Vietnam is struggling to address the issue of bad debt. This is considered a cause of distorted credit flows and makes the situation more difficult for businesses.

To date, the Vietnam Asset Management Company (VAMC) has only purchased 2% of the approximately 52 trillion VND (equivalent to 2.4 billion USD) of non-performing loans from banks since 2013.

Meanwhile, Prime Minister Nguyen Tan Dung warned yesterday that this year's economic growth might not reach the target of 5.8% if all levels and sectors do not make efforts to implement the measures and plans that have been set out. In fact, this figure could even fall to 5.25%.

As of the end of June 2014, Vietnam's non-performing loan (NPL) ratio was reported at 4.84% of total outstanding credit in the economy. However, in a report released on July 15th, Standard & Poor's suggested that Vietnam's actual NPL ratio could be significantly higher than the reported figure due to the current loan classification not conforming to international standards.

Speaking to Bloomberg, Minister of Planning and Investment Bui Quang Vinh said that economic growth is likely to be lower than expected, at around 5.6%, amid difficulties faced by businesses.

Furthermore, the incidents that occurred in some industrial zones in May due to protests by residents against China's illegal placement of an oil rig in Vietnamese waters have also somewhat affected Vietnam's FDI attraction.

Registered FDI capital into Vietnam in the first half of this year decreased by 35% to $6.85 billion. However, disbursed FDI capital increased by 0.9% compared to the same period last year, reaching $5.75 billion.

Yesterday, Deputy Minister of Finance Nguyen Cong Nghiep also stated that the ministry is considering easing some import and export taxes to support businesses. "We are looking for solutions to help businesses reduce costs and cope with the challenges of economic growth," Mr. Nghiep said.

According to what I read in the newspaper.