The service of debt trading will soon be put into operation

Debt Trading Service Business Activities are understood as the continuous execution of one or several activities related to debt trading for profit purposes, including: debt purchase, debt sale, debt trading brokerage, debt trading consultancy, and debt trading exchange services. Specifically:

- Debt trading involves the debt seller transferring part or all the rights to demand the debt and other related rights to the debt buyer, who in turn pays the debt seller;- The debt buyer is an organization or individual that purchases or receives the transfer to become the new creditor of the debt;- The debt seller is an organization or individual that owns the debt and conducts the sale or transfer of the debt to the debt buyer;- The broker is an enterprise providing debt trading brokerage services.

Though it may seem irrational to take on debt, in reality, this is a profitable business activity that minimizes risk and reduces the situation of bad debts that are difficult to recover or settle.

To effectively operationalize the debt trading service business, the enterprise's manager must meet the following conditions:

- Have full civil act capacity; not be subject to prohibitions on managing enterprises according to the Law on Enterprises;- Possess a university-level education or higher in one of the following fields: economics, business administration, law, or related specialization;- Be an experienced manager or have at least 5 years of direct work experience in finance, banking, accounting, auditing, law, asset valuation, or debt trading;- Those who have worked in other debt trading service businesses which have had their Business Registration Certificates revoked must meet the additional condition: not holding management positions in debt trading service businesses that have had their Business Registration Certificates revoked within the preceding three years.

The Draft Decree on conditions for debt trading service business aims to form and develop a centralized debt trading market in Vietnam, creating a legal framework for organizations and individuals to operate debt trading services openly, transparently, equally, saving time and costs.

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