Inter-agency collaboration required to resolve bad debt: ADB   Nhan Dan Online – The Asian Development Bank (ADB) has said non-performing loans can only be tackled if there is stronger collaboration between government ministries and agencies. In a report released today, the ADB commended positive steps taken by the State Bank of Vietnam to deal with bad debt but warned that central bank action alone is not enough. ADB Country Director for Vietnam Tomoyuki Kimura said that the success of an asset management company that went into operation in July could depend on other policy reforms outside the direct mandate of the SBV. ADB economist Dominic Mellor noted that the Government needs to strengthen the bankruptcy law and the legal framework for dealing with secured asset transactions, and establish mechanisms to price and auction bad debt. Mellor expressed concern over the central bank’s decision to postpone the effective date of a regulation on the classification of bad debts, stating that it could intensify risks to the banking system. The regulation, known as Circular 02, was originally due to come into force in June of this year, but has been delayed until June 2014. According to the central bank, the ratio of non-performing loans in the banking system was 4.46% as of June 30, down from 4.65% a month earlier. In its latest report, the ADB maintains its 2013 growth forecast for Vietnam at 5.2%, picking up slightly to 5.5% next year. It warned that unless structural reforms in the banking system and State-owned enterprises are expedited, the economy could face a longer period of lacklustre growth, languishing below the 7-8% pace set from 2002-2007. According to official data, the economy of Vietnam expanded by 5.14% in the first nine months of the year, slightly below the 5.5% target set earlier this year. NhandanOnline