Logo of Phnom Penh Post newspaper Phnom Penh Post - VN banks to sell collateral assets amid rising bad debts

VN banks to sell collateral assets amid rising bad debts

Content image - Phnom Penh Post
BIDV’s Gia Dinh branch auctioned 65 apartments in the Era Town project. VIETNAMFINANCE.VN/VIET NAM NEWS

VN banks to sell collateral assets amid rising bad debts

A number of banks in Vietnam have announced plans to auction off their collateral assets in an attempt to speed up bad debt recovery.

On the website of Vietinbank Debt Management and Asset Exploitation Co Ltd (Vietinbank), since the beginning of this month, Vietinbank has put six properties up for sale worth at least 223 billion dong ($9.6 million). This value is based on the initial selling price of the auctioned assets.

The highest starting price is 190 billion dong for the land use rights and ownership of houses and other properties attached to a 3.23ha land situated at the Can Tho Centre complex.

Other properties on sale include 2ha land plot use right at the Tam Hiep industrial park and port logistics at 10 billion dong and nearly 90ha of rubber trees and attached buildings in Kon Tum province’s Dak To district at more than 7.8 billion dong.

A collateral asset including 30 land use rights and land-attached assets with an area of more than 5ha in Hoa Binh province’s Ky Son district, will also be auctioned to handle debt worth 105 billion dong of Viet Thai Steel JSC.

By the end of March, total non-performing loans of Vietinbank increased 56 per cent compared to the start of the year, driving the bad debt ratio to 1.83 per cent from 1.16 per cent.

Since April, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has also put up many properties for sale to resolve bad debts.

Last week, BIDV’s Quang Tri branch put up four assets pledged as security for loans for sale with starting price of 88 billion dong.

This month, BIDV also auctioned collateral assets of Truong Phat Investment Trading and Services JSC. The company’s debts as of February reached nearly 105 billion dong. The collateral asset is the land use right of 2,832sqm land in Hanoi’s Ba Dinh district, being auctioned for at least 100.5 billion dong.

Earlier, BIDV’s Gia Dinh branch auctioned 65 apartments in the Era Town project in Ho Chi Minh City’s District 7 with the starting price ranging from 2.1 to 5.5 billion dong per apartment.

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) is also selling buildings, a sports complex and land in Ho Chi Minh City’s Binh Tri Dong district with the starting price of more than six trillion dong.

Adverse impacts of the Covid-19 pandemic have pushed many companies to their limits and forced banks to put their debts up for auction.

But as the real estate market has been in a difficult period since the latter half of last year, many high-value properties have struggled to find buyers.

Some of BIDV’s mortgages have been sold for the third time but have yet to be sold while assets auctioned by Sacombank could not be transferred despite the bank has reduced the selling price.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Lost in translation: ‘Starvation’ in capital’s designated red zones

    “DACH bay” is a Khmer slang meaning a “loss of income”, that could also be literally translated to «deprived of rice”, which alludes to starvation. However, civil society organisation (CSO) officials have independently confirmed the government’s prior assertions that there are no cases of