return icon

BIDV puts auto firm Vinaxuki up for sale to recover bad debt

The Bank for Investment and Development of Vietnam (BIDV) has announced plans to put secured assets of Xuan Kien Auto JSC (Vinaxuki) up for auction...


A car model by automobile manufacturer Vinaxuki. — Photo



The Bank for Investment and Development of Vietnam (BIDV) has announced plans to put secured assets of Xuan Kien Auto JSC (Vinaxuki) up for auction to recover the VND1.26 trillion (US$55 million) non-performing loan.

The debt was taken up to support Vinaxuki to manufacture Made-in-Vietnam cars and trucks over the past years.

However, Vinaxuki, with its owner Nguyen Xuan Kien, failed to meet an ambition to become the first Made-in-Vietnam car producer, slipping into losses and having to shut down.

The debt has secured assets including a 139 square metre land lot and attached assets in Me Linh District’s Tien Phong Commune, a suburb of Ha Noi, where a Vinaxuki factory is located. Machinery and equipment of the factory are also secured assets of the debt.

In addition, the assets attached to the land of another Vinaxuki factory in the northern province of Thai Nguyen, and the right to exploit Antimony ore mines, and the ore sorting line in Dak Drong commune of the Dak Nong Province are also pledged for the debt.

The reserve price of the debt has yet to be disclosed by BIDV, however, as of September 15 last year, the sum of the debt and interest was VND1.26 trillion ($55 million).

According to BIDV’s announcement, organisations eligible for bidding at the auction are those operating for a minimum of three years and having at least three branches, with a head office in either Ha Noi or HCM City.

Originating from a factory specialising in manufacturing molds and spare parts for automobiles, in April 2004, Vinaxuki was licensed by the Prime Minister to manufacture and assemble cars of all kinds.

According to the design capacity, Vinaxuki’s three factories in Thai Nguyen and Thanh Hoa provinces and Ha Noi’s Me Linh District could produce 30,000 vehicles a year, generating jobs for more than 9,000 locals.

In its first years of operation, Vinaxuki’s performance was positive as it completely recovered its capital and began repaying debts to the bank.

It produced more than 20 types of trucks with a localisation rate of 27 per cent and three types of passenger cars with a localisation rate of 5 per cent in the in 2006-08 period.

After the period, Vinaxuki continued to invest in construction with the ambition of increasing its localisation rate.

However, the economic downturn in 2010 caused the automobile market to plunge. Thousands of vehicles were assembled but could not be sold.

The company was starved of capital, while the fiercely competitive market went into stagnation. In the following years, Vinaxuki operations revolved around interest and debt repayment. — VNS

KEB Hana Bank becomes BIDV’s strategic shareholder

KEB Hana Bank becomes BIDV’s strategic shareholder

South Korea’s KEB Hana Bank has officially become a foreign strategic shareholder in the Bank for Investment and Development of Vietnam (BIDV) following a cooperation agreement with the two sides inked on Monday.

BIDV sells 603 million shares to KEB Hana Bank

BIDV sells 603 million shares to KEB Hana Bank

After the issuance, the bank's charter capital has increased by VND6 trillion from VNĐ34.2 trillion to more than VND40.2 trillion.


Number of international visitors to Vietnam sets 'record' after pandemic

Vietnam welcomed 2.95 million foreign visitors in January-November 2022, 21.1 times up year on year, but still down 81.9% compared with pre-pandemic levels in 2019.

Su-30MK2, Mi helicopters rehearse in Hanoi

On December 2, Su-30MK2 fighters performed in a rehearsal to prepare for the upcoming Vietnam International Defense Exhibition 2022.

Vietnam sends condolences over passing of former Chinese leader Jiang Zemin

Vietnamese leaders on December 2 cabled messages of condolences to Chinese leaders over the death of former General Secretary of the Communist Party of China (CPC) Central Committee and former President of China Jiang Zemin.

Ministry proposes canceling funding plans over disbursement delays

Disbursements of public funds sourced from foreign loans in the year through November had moved at a snail’s pace, reaching only slightly more than 25% of the full-year plan.

Hanoi to pilot bike rental service in six urban districts

Hanoi has approved a year-long pilot bike rental service programme in Hoan Kiem, Tay Ho, Dong Da, Ba Dinh, Hai Ba Trung, and Thanh Xuan districts.

Weightlifters hope for Olympic qualification from world championship

It was scheduled to be held in Chongqing, China, but this changed in March due to COVID-19 measures in China. The new location was announced in April.

Striker Nguyen Van Quyet named best player of 2022 V.League 1

Striker Nguyen Van Quyet received a statue for the most valuable player of the 2022 V.League 1 season at a V.League Awards ceremony organised on December 1 in Hanoi.

Meteor shower to light up Vietnamese skies on December 13

Local sky gazers will have a rare opportunity to witness the peak of the Geminids meteor shower, with the astronomical event set to occur between midnight on December 13 and the morning of December 14.

Da Nang wins Best Vietnam Smart City Award for third time

The central city of Da Nang has been granted the Best Vietnam Smart City Award 2022, the third time so far.

Newly-established, re-operating enterprises up over 33% in 11 months

Vietnam saw nearly 194,700 newly established and re-operating enterprises in the first 11 months of 2022, up 33.2% over the same period in 2021, a 1.3 times higher than the average rate in January – November period from 2017 - 2021.

Politburo members discuss review of resolution on HCM City development

Party General Secretary Nguyen Phu Trong on December 2 chaired a Politburo meeting on a project to review the 10-year implementation of a resolution on the orientations and tasks for the development of HCMC until 2020 and 2030, with a vision to 2050.

Exporters face tax unless they cut greenhouse gas emissions

Exports to the EU market will become more expensive unless enterprises implement greenhouse gas emission cuts. This will affect the competitiveness of many Vietnamese export companies.

Some of the best fishing lakes in and around Hanoi

Here are some of the most popular fishing lakes near Hanoi. On weekends, the number of people flocking to commercial centres, pedestrian streets or entertainment areas in the inner city of Hanoi has increased.

Vietnam demands Taiwan cancel live-fire exercises on Ba Binh Island

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).