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).

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.

Source: https://vietnamnet.vn/cong-ty-quan-ly-no-khong-duoc-kinh-doanh-bat-dong-san-2449287.html