DATC Beats H1 Targets, Ramps Up Efforts to Achieve Full-Year Plan

Vietnam Debt and Asset Trading Corporation (DATC) has recently published its report on the execution of its tasks and business performance for the first half of 2024. The report reveals a revenue achievement of VND1,858.8 billion, representing a remarkable 324% increase compared to the same period in 2023 and fulfilling 75.6% of its annual target. Additionally, DATC has outlined its solutions for the latter half of the year, with a focus on achieving its 2024 objectives.

Success from active and flexible changes in debt trading methods

In 2024, amidst the Government’s many policy adjustments in macroeconomic management and banks' debt handling, along with heightened competition in the debt trading market, DATC faced significant challenges. Nevertheless, directed by the Ministry of Finance and its specialized agencies, and bolstered by the unity, determination, and innovation of its leadership and staff, DATC adeptly navigated these obstacles. As a result, the corporation successfully met its tasks and business plan targets for the first half of the year.

General Director Pham Van Thuong of DATC emphasized the critical role of corporate culture in driving the company's development

DATC proactively restructured debts at SBIC and Northern Foodstuff Joint Stock Company, and worked closely with the Enterprise Innovation Board, central and local agencies, and state-owned enterprises (SOEs) to manage and acquire debts and assets that were excluded from business valuations. This approach allowed DATC to efficiently collect debts and assets, thereby making a significant contribution to the state budget. In the first half of the year, DATC handled debts and assets, generating VND2.03 billion in recovered revenue for the State budget, achieving 30.48% of its annual target.

During the six-month period, DATC achieved a total estimated revenue of VND1,858.8 billion, which represents a 324% increase compared to the same period in 2023 and fulfills 75.6% of the annual plan. The estimated pretax profit was VND68.5 billion, reflecting a 104.3% increase over the corresponding period in 2023.  It contributed VND89.9 billion to the State budget, which is 133.3% of the amount paid in the same period last year.

These positive results can be attributed to DATC's effective leadership and the decisive implementation of flexible strategies for debt purchase and resolution. Notably, DATC innovatively revised its debt collection methods from the originally approved resolution to better align with practical conditions and the financial capacities of debtors with a focus on auction-based debt purchases, which streamlined plan development and reduced the time required for debt acquisition. In the first six months of the year, DATC successfully signed eight debt purchase contracts totaling VND2,765.7 billion.

Regarding corporate restructuring, DATC reviewed and restructured companies with purchased debts from previous years on the one hand and expanded debt purchases and conducted corporate restructuring to improve competitiveness on the other hand. In addition, DATC also actively applied regulatory procedures on divestments, including corporate divestments in five latest years from the time DATC became a shareholder but interested investors who sought to increase capital turnover and capital efficiency.

DATC leaders participated in the IPAF Summit and Conference, held in Bali, Indonesia

Moreover, policymaking, personnel and salary apparatus, project investment, basic construction, finance - accounting, inspection¸ planning, cooperation, marketing, communication and promotion are all interested by DATC leaders and employees and actively implemented in the "uniting for development" spirit.

Further promoting internal strength, advancing towards the target

The positive results from the first half of this year provide a strong foundation and motivation for DATC to tackle challenges and enhance competitiveness in the debt trading market, especially as it aims to achieve its 2021-2025 business plan goals in 2024.

DATC consistently prioritizes volunteer activities and community responsibility, demonstrating commitment through meaningful and practical actions

Building on its strengths and achievements, DATC will set clear goals and solutions for the second half of 2024. Alongside its ongoing debt restructuring efforts at SOEs including SBIC and Northern Foodstuff Joint Stock Company, DATC aims to achieve a full-year total revenue of VND601.1 billion, a pre-tax profit of VND171.5 billion, and a state budget payment of VND76.5 billion.

In the coming time, DATC will accelerate negotiations to finalize debt purchase contracts with credit institutions, particularly those approved by the Board of Members. The focus will be on expediting debt collection and divestment processes, closely coordinating with relevant bodies to manage debts and excluded assets, and prioritizing the resolution of debts and divestment at Lilama Hanoi Company.

DATC will focus on researching and amending mechanisms and policies, including proposing changes to Decree 129/2020/ND-CP, contributing to the drafting of a new law to replace Law 69/2014/QH13, and reviewing the Law on Credit Institutions 2024 and the Land Law 2024. It will also work on drafting related decrees, circulars, and instructions, updating internal regulations on spending, emulations, and rewards, refining the debt and asset purchase process, and developing a specialized salary mechanism for DATC.

DATC will seriously address various tasks, including labor and salary management, project investment and construction (completion and operation of projects at 154 Nam Ky Khoi Nghia and 73 Quang Trung), planning, cooperation, and marketing, finance and accounting, operational expansion, information technology applications, and communications.

The plans and goals set for the second half of 2024 demonstrate DATC's strategic vision and careful preparation for possible fluctuations in the debt trading market. The continued promotion of internal strengths, including corporate culture and unity, will help DATC maintain growth momentum, successfully complete its targets, conquer new destinations and reaffirm the mission of "lifesaver" for indebted enterprises.

Tran Ngoc (Vietnam Business Forum)