Banks sell assets worth thousands of billions of dong to recover debt

Quang Thang• September 10, 2018 10:26

Some banks are selling collateral such as real estate, goods, along with bad debts worth thousands of billions of dong to recover principal and interest.

The most recent case is Sacombank selling a series of land plots and real estate projects worth tens of thousands of billions of VND to recover and handle bad debt.

A bank is selling a series of valuable real estate properties in Ho Chi Minh City. Photo:Le Quan.

Among the real estate lots for sale this time are many valuable land lots in the center of Ho Chi Minh City such as lot number 61-63A Nam Ky Khoi Nghia (District 1) with an area of 800 m2, starting price up to 811 billion VND. Equivalent to more than 1 billion VND/m2. Or the 270 m2 lot in District 3 with a starting price of 227 million VND/m2; the land lot in the project 391-393-395-397 Tran Hung Dao, District 1 has a price equivalent to nearly 265 million VND/m2...

Notably, Sacombank also put up 4 land lots worth thousands of billions of VND for auction this time. Including Phong Phu Industrial Park Project (Binh Chanh District, Ho Chi Minh City) with a starting price of 7,600 billion VND; Sub-area 3 residential area project - Binh Tri Dong residential area with a starting price of 6,698 billion VND; Binh Thuy Ward residential area project (Can Tho City) with a price of 4,565 billion VND; Long Binh Ward residential area project, District 9, Ho Chi Minh City with an offering price of 1,815 billion VND.

Previously, at the end of 2017, Sacombank also auctioned 3 land lots in Duc Hoa III Industrial Park, Long An province with a total value of up to 9,200 billion VND.

Meanwhile, the Vietnam Asset Management Company (VAMC) has recently continuously announced the sale of assets and accompanying debts. One of them is the assets of Thuan Thao Nam Sai Gon Joint Stock Company and 95 individual customers at BIDV Bank Phu Tai branch. Thuan Thao is the company of Ms. Vo Thi Thanh, who is known as the "golden rose" of Phu Yen.
The total principal and interest of these loans amounted to VND2,378 billion. Most of these were loans from Thuan Thao Company borrowed from this bank with collateral being real estate and company shares.
Agribank and Agribank AMC will have more than 10 asset auctions this September with a total starting value of over 470 billion VND. Among them are many valuable assets such as 3 land use rights in Phu Huu ward, District 9, Ho Chi Minh City with a starting price of 96 billion VND; land use rights at 132 Nguyen Thai Hoc street, Hanoi and the attached building with a starting price of 69 billion VND...
Another bank that has recently stepped up its debt sale for recovery is Vietinbank. After the sale of a 74 billion VND debt of a company chaired by Shark Vuong, this bank continues to sell many debts and assets associated with the debt to recover. Among them is a 111 billion VND debt of NEM Trading Joint Stock Company with collateral being the entire inventory of the company (fashion goods, clothes, maternity dresses...) with a value of nearly 34 billion VND.
Meanwhile, Vietinbank Ba Dinh Branch also auctioned off a debt of more than 66 billion VND of Song Day - Hong Ha Petroleum Joint Stock Company. Thu Duc Branch auctioned off a debt of more than 21 billion VND of Gia Phu Real Estate...
According to Mr. Nguyen Van Du, Deputy Chief Inspector of the State Bank of Vietnam (SBV), from 2012 to the end of June, the entire banking system has handled more than VND785,000 billion of bad debt. Of which, bad debt handled according to Resolution 42 alone in the past year has reached over VND138,290 billion, not including VND61,040 billion in risk provisions to handle bad debt on the balance sheet.
In the first half of 2018, the banking industry has handled 58,000 billion VND of bad debt, mostly self-handled debt.