DATC: A Proven “Lifesaver” for Businesses

Set up 20 years ago to handle outstanding debts and assets to support and promote the equitization process of state-owned enterprises (SOEs), DATC has to date affirmed its leading position in debt trading and its role as an effective tool of the Government to enable and shape the debt trading market for the economy. Without doubt, DATC is one of the “lifesavers” for companies to handle bad debts, helping them not only become financially healthy but also recover business activities quickly and create huge social effects.

Representatives of the Board of Directors, Trade Union and units of DATC signed the emulation contract in 2023

Entering 2024, DATC is ready to make a breakthrough, build each solid step and create a foundation for carrying out tasks in the new period.

Resilience at age 20

Buying, selling and handling bad debt is extremely important in accelerating corporate restructuring, especially when business restructuring is being promoted today. Being aware of its role and responsibility, DATC always adheres to its basic principles of completely handling bad debts and performing political tasks assigned by the Government, the Prime Minister and Ministry of Finance.

DATC’s successes in bad debt settlement and business restructuring have also supported the economy. Many near-bankrupt or moribund companies have been revived after DATC handled their bad debts and conducted restructuring. Typical examples include Son La Sugar Company, Kon Tum Sugar Company, Sadico Can Tho Company and Vietnam Maritime Corporation (Vinalines).

2023 marked DATC’s 20th birthday. On the 20-year journey of relentless efforts, DATC completed its mission and built a solid foundation to conquer new highs in a new context. Amid economic slowdown, with the firm direction of its Board of Directors and the resolution of all its employees, especially debt trading officers, DATC’s operations improved. The corporation’s revenue totaled VND2,460 billion, equal to 123% of the full-year plan assigned by the Ministry of Finance, and the profit before tax was estimated at VND240 billion, or 107% of the plan assigned by the Ministry of Finance. It paid VND165 billion to the State Budget.

In the year, DATC actively executed and completed its assigned political tasks like debt restructuring of Shipbuilding Industry Corporation (SBIC); coordinated with SOEs to take over debts and assets excluded from business value; collected State budget revenue by handling classified debts and assets and receiving them from businesses. With the motto of wherever it arises, it will be received there. In 2023, DATC completed procedures for receiving debts and excluded assets at two companies with a received value of VND78.2 billion.

From 2004 to December 31, 2023, DATC received debts and excluded assets at 2,726 companies with a received value of VND6,287 billion. DATC exceeded the 2023 plan assigned by the Ministry of Finance: Sales recovered for the State reached VND8,325 billion and revenue was VND2,498 billion, equal to 119% of the 2023 plan.

In addition, with its core business - buying and selling debts and assets, in the year, DATC signed contracts to buy and handle VND8,227 billion and US$63.2 million (VND9,756 billion) of bad debts at credit institutions and companies. Revenue from debt and asset trading and settlement was VND2,264 billion, equal to 125% of the full-year plan and 154% of the value in 2022).

In the international integration trend, DATC actively expands cooperation with many international agencies and financial organizations. In addition to maintaining its role as a founding member of the International Public Asset Management Companies Forum - IPAF, DATC is also highly appreciated by ADB for its coordination programs such as “Project to assess the feasibility of establishing and operating an online debt trading platform in Vietnam”.

The delegation of DATC at the 7th IPAF Summit and International Conference held in Bali, Indonesia

Bringing Spring to all parts of the country

With the philanthropic heart of a young firm to bring bright smiles of a new spring to life and people, DATC always promotes the strength of great solidarity to fulfill the mission of SOEs, including responsibility to the community.

Building charity houses for poor households is an important activity of DATC which seeks to help them settle down with peace of mind and escape poverty, and also contributes to local socioeconomic development. Last year, DATC joined hands with many units to build 10 charity houses for 10 poor households in Phuoc Hau commune, Ninh Thuan province under the Social Security Program launched by the Ministry of Finance. Of the sum, DATC helped build five houses worth VND250 million in total.

Recently, DATC has provided financial support of over VND700 million under a program of the Party Committee and the Trade Union of the Ministry of Finance to support the construction and repair of charity houses for 141 poor and near-poor households in Muong Ang district, Dien Bien province; and presented gifts worth VND500 million to the Muong Ang Education Promotion Fund. These new bright activities of DATC in carrying out social security.

Mr. Le Hoang Hai (R), Chairman of the Board of Members and Mr. Pham Manh Thuong, General Director of DATC

Steadily step on the new path

In the new context, where competition is increasing, along with changes and adjustments in policies, many new challenges are posed for DATC's professional employees. To lead DATC to success, the Board of Directors has been building a suitable approach for the future, enabling DATC to do well in both aspects of economic and financial efficiency and business support for survival and development.

Accordingly, DATC will actively receive and handle debts and exclude assets; seriously handle debts and exclude assets at companies before 2024 and implement the decision on DATC restructuring project for the 2022-2025 period and the DATC development strategy in the 2022-2030 period, with a vision to 2035.

Based on its results in 2023 and forecasts for 2024, DATC built business targets in 2024, including revenue of VND2,460 billion, up 23%, and a profit before tax of VND240 billion.

DATC's lessons learned in bad debt handling and business restructuring are important for its bad debt handling today. However, to further promote the role of DATC, the coordination, assistance and cooperation of the State Bank, the Ministry of Natural Resources and Environment, the Ministry of Labor, Invalids and Social Affairs, and many other financial agencies with new mechanisms and policies are also essential factors for DATC to make breakthroughs in the coming period.

At the advent of the new Year of the Dragon, with its 20-year experience and the existing foundation, along with valuable experiences, DATC is confident that it will successfully complete its goals in 2024 and beyond, and strongly develop to become an important financial institution in the economy.

By Bao Ngoc, Vietnam Business Forum