Besides the above solution group of prevention, Vietcombank can apply the solution group of settlement. Currently Vietcombank has high amount of debts with value of hundreds of billion VND including land, real estate, villa, restaurants, etc. If assets are transferred to money quickly, that money can be lent to other borrowers and Vietcombank will not suffer losses. However, assets often have low liquidity, and the losses will be high. For example of the value of a collateral is 100 billion VND, if this amount is cash, the Bank can lend at an interest of 1.5% per month and can collect more than 9 billion VND after 6 months and 20 billion VND after one year. But as this real estate collateral is waited to be sold, Vietcombank does not get any penny not mentioning the price devaluation. Hence, the bank loses 20 billion each year, not mentioning intangible depreciation and maintenance fees. Thus, right when knowing the customer cannot pay the loan, Vietcombank needs to liquidate collaterals quickly and wisely. Collaterals which are offered an acceptable price should be sold immediately so that Vietcombank can retrieve money. Collaterals which cannot be sold immediately should be classified and evaluated carefully in order to have an appropriate and effective settlement. For collaterals as restaurants, as Vietcombank does not possess expertise, specialists should be hired or the bank can rent the restaurant to get profits. Collaterals as villas or offices can be used to be an office of a Vietcombank branch. As Vietnam is in a trend of investment in buildings and condominiums, those collaterals will bring much profit to Vietcombank. The survey shows that most collaterals are houses and land in provinces and districts. These collaterals are managed by the local authorities. When the bank wants to rebuild or cooperate with some construction company to construct a building for rent, it will be very difficult if the local government hinder or sue with reason that surrounding citizens are affected. Therefore, Vietcombank should build a close relationship with local authorities. Improving surveillance can be done by creating safe credit list, balance between risk and returns, establishing credit provision, supervising final credit losses. Detail supervision is also necessary for high risk debts, late payment, new payment plan, outside symptoms. The current credit operation framework of Vietcombank is as following: The credit operation is unclear and incomplete. Credit operation process should follow this following suggested credit operation model.


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