4 Basic contents to better understand the Vietnam Debt and Asset Trading Corporation (DATC)

4 Basic contents to better understand the Vietnam Debt and Asset Trading Corporation (DATC)​ (Illustrative image)

1. What is DATC?

Vietnam Debt and Asset Trading Corporation, abbreviated as DATC. Decree 129/2020/ND-CP stipulates the functions, duties, and operational mechanisms of the Vietnam Debt and Asset Trading Corporation with 100% charter capital held by the State.

2. Organizational and Management Model of DATC

According to Article 4 of Decree 129/2020/ND-CP, the organizational and management model, and the legal representative of DATC are governed by the Charter of Organization and Operation of DATC.

DATC has a legal personality, its own seal, and can open accounts in Vietnamese Dong and foreign currencies at the State Treasury, domestic and foreign commercial banks in accordance with legal provisions.

3. Functions and Duties of DATC

According to Decree 129/2020/ND-CP, DATC has the following functions and duties:

- Support restructuring, reorganizing, and transforming state-owned enterprises with 100% charter capital through the reception, purchase, and processing of debts and assets.

- Purchase and process debts and assets based on the following principles:

• Preserve and develop the state investment capital at DATC;
• Prioritize focusing DATC’s resources to support the restructuring, reorganizing, and transforming state-owned enterprises with 100% charter capital through the reception, purchase, and processing of debts and assets;
• Be responsible for the effectiveness of the purchase, sale, and processing of debts and assets according to market mechanisms.

- Implement other duties assigned by the Government of Vietnam, the Prime Minister of Vietnam, and the representative agency of the owner.

4. Operational Principles of DATC

DATC operates under three principles:

- Autonomy, self-responsibility, and preserving and developing state capital.

- Transparency, openness, and compliance with legal regulations.

- Control and minimize risks during operations.

5. State Ownership of DATC

Article 8 of Decree 129/2020/ND-CP stipulates:

- The State is the owner of DATC. The Government of Vietnam unifiedly exercises the state owner’s rights and obligations towards DATC.

- The Ministry of Finance exercises the state owner’s rights and obligations as assigned and decentralized by the Government of Vietnam.

- The Board of Members of DATC exercises the owner’s rights and obligations towards DATC in accordance with the law and the Charter of DATC.

More details can be found in Decree 129/2020/ND-CP, effective from December 10, 2020.

Thuy Tram

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