ACCELERATING BAD DEBT RESOLUTION SOLUTIONS AT JACCS VIETNAM IN THE NEW CONTEXT

In accordance with the Communications Plan issued under Decision No. 377/QD-NHNN dated March 19, 2026 by the Governor of the State Bank of Vietnam, bad debt resolution in 2026 at credit institutions is not only a technical task but also a core component of the sustainable restructuring strategy.

In line with this direction, JACCS International Vietnam Finance Company Limited (JACCS Vietnam) has been implementing a wide range of synchronized bad debt resolution measures, with the control of the on-balance-sheet non-performing loan (NPL) ratio below 3% identified as a key and consistent objective throughout 2026.

1. Target of Maintaining the On-Balance-Sheet NPL Ratio Below 3%

Amid positive economic developments in 2026, JACCS Vietnam considers maintaining asset quality as its top priority. JACCS Vietnam’s overarching objective is to control and reduce the on-balance-sheet NPL ratio to below 3%.

To achieve this target, JACCS Vietnam is shifting its focus from “passive debt collection” to “proactive loan lifecycle management,” identifying risks from the earliest signs of customers’ financial fluctuations.

2. Applying the 2024 Law on Credit Institutions: A Solid Legal Foundation

In 2026, an important foundation for debt resolution efforts in the new phase is the application of regulations formerly stipulated under Resolution 42, now incorporated into the Law on Credit Institutions regarding bad debt resolution. JACCS Vietnam focuses on:

• Optimizing collateral handling: Applying regulations on the right to repossess and liquidate secured assets through streamlined procedures in a prompt, transparent, and compliant manner.

• Enhancing litigation coordination: Strengthening collaboration with Courts and Civil Judgment Enforcement Agencies to apply precedents and simplified procedures in resolving credit disputes, thereby significantly reducing time and costs for both the company and customers.

3. From “Debt Collection” to “Financial Recovery Consulting”

A breakthrough initiative in JACCS Vietnam’s 2026 strategy is the implementation of the Financial Recovery Consulting model. Instead of merely exerting pressure for repayment, debt management personnel are trained to become trusted partners accompanying customers through financial difficulties by:

• Applying interest and fee reduction packages for customers facing objective hardships.

• Supporting credit reintegration: Resolving debts thoroughly through a sharing-oriented approach helps customers improve their credit history on the CIC system, thereby creating opportunities to regain access to formal financing sources, contributing to the prevention of illegal lending and promoting financial inclusion.

4. Strategic Direction for Applying Modern Technology

To enhance future risk management capabilities, JACCS Vietnam is moving toward the digitalization of debt resolution operations through:

• Early warning systems: Developing big data analytics models to predict customer behavior and identify repayment risks at an early stage.

• Digital customer interaction: Implementing automated debt reminder platforms and online customer support systems to ensure a more transparent, professional, and highly secure debt resolution process.

Conclusion

The combination of a solid legal framework under the Law on Credit Institutions and a modern, customer-centric debt management mindset is the key to helping JACCS Vietnam achieve its bad debt control targets. Decisive bad debt resolution efforts not only safeguard JACCS Vietnam’s resources but also contribute directly to the stability and transparency of Vietnam’s financial and banking system in the coming years.