Abstract

Non-performing loan (NPL) resolution is directly relevant to the safety of the banking system. After Resolution No. 42/2017/QH14 ceased to apply, the 2024 Law on Credit Institutions, the 2025 Law amending and supplementing it, and Decree No. 304/2025/ND-CP codified several NPL resolution mechanisms, marking a significant transition from a pilot scheme to a stable legal framework. This article analyzes remaining shortcomings in collateral enforcement, civil judgment enforcement, credit dispute resolution, the debt trading market, and loan classification. It then proposes legal reforms oriented toward inter-sectoral legal harmonization to enhance NPL resolution effectiveness and ensure the safety and stability of Vietnam’s commercial banking system.

Keywords: non-performing loan resolution; collateral; commercial bank; Law on Credit Institutions; cross- sector legal synchronization.