Mortgaged assets are not selling well: local banks

Commercial banks are rushing to sell immovable properties which are collateral for unpaid debts. But finding buyers has been difficult.

BIDV (the Bank for Investment and Development of Vietnam) has announced the selection of an institution to auction the debt of the Tai Nguyen Construction, Production and Trade Co Ltd.

Mortgaged assets are not selling well: local banks



The collateral for the debt includes land use rights and assets on the land to take shape in the future, belonging to Kenton project, located in Nha Be district, HCM City; and the rights for the quarry in Quoc Oai district, Hanoi.

Of these, Kenton project alone is valued at VND7.836 trillion which has been mortgaged by the debtor at BIDV, Maritime Bank and PVCombank.

BIDV also plans to sell the asset mortgaged by Hung Ngan Housing Company to collect debt worth VND518.7 billion in both principal and interest.

Commercial banks are rushing to sell immovable properties which are collateral for unpaid debts. But finding buyers has been difficult.

The collateral for auction includes land plots in HCM City, Hanoi and Kien Giang, including assets created by loans which are part of a multi-story housing and trade-service complex in district 12, HCM City.

 

The starting price is VND466.9 billion.


A series of other commercial banks are also promoting the sale of mortgaged assets to collect debts in accordance with the National Assembly’s Resolution No 42.

Sacombank is seeking buyers for a series of land plots worth tens to hundreds of billion of dong, including land plots in district 8 with a total area of 12.669 square meters.

Analysts commented that the number of businesses dissolved or suspending operation in the first months of the year increased sharply because of Covid-19, which led to the increase in bad debts. Banks have had to step up foreclosure and sale of mortgaged assets to collect debts.

The general director of a real estate firm with many properties said he is interested in the projects to be auctioned. These are good projects because they underwent legal check and banks valuation. Also, the prices of the products would be reasonable.

However, he would have to find out if the design of the projects fits his business purposes. If he buys projects with unsuitable designs, he would have to spend time to adjust the structure, or would not be able to gain added value.

Dinh The Hien, a respected financial expert, said it would be not easy for banks to find buyers. The real estate market was gloomy in 2019 and has become even worse because of Covid-19. 

Linh Ha

A vaccine for real estate amid challenging times

A vaccine for real estate amid challenging times

The Vietnamese real estate market has been feeling the pinch, but it can make a swift recovery when the pandemic is brought under control with support policies from the government and promotional campaigns from developers.

VN real estate market to recover shortly: Experts

VN real estate market to recover shortly: Experts

The slowdown in 2019 and the arrival of the COVID-19 pandemic in the opening months of 2020 saw Vietnam’s property market hit “double trouble”, but experts have said the possibility of a quick recovery remains.

 
 

Other News

.
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
BUSINESSicon  08/09/2020 

The signing ceremony of a land lease contract and land delivery for factory construction between Cat Tuong Real Estate Group, Top Textile Co., Ltd and Jehong Textile Viet Nam Co, Ltd took place on September 4.

Vietnamese rice takes bite out of global market
Vietnamese rice takes bite out of global market
BUSINESSicon  07/09/2020 

Vietnam’s rice exports have expanded during the pandemic to surpass rival Thailand in price for the first time in three decades, leading experts to suggest the sector should consolidate its position.

Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

Profit taking to weigh on local market, but September may be bright
Profit taking to weigh on local market, but September may be bright
BUSINESSicon  07/09/2020 

Vietnam’s stock market rally may slow this week as investors eye profits but the one-month projection is still optimistic.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

Logistics groups strive to exploit EVFTA potential
Logistics groups strive to exploit EVFTA potential
BUSINESSicon  07/09/2020 

The EU-Vietnam Free Trade Agreement has created a new driving force for Vietnam’s logistics, but the industry needs to take further action to unlock its full potential.

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

Vietnam’s plywood suppliers under scrutiny over practices
Vietnam’s plywood suppliers under scrutiny over practices
BUSINESSicon  06/09/2020 

As the trade tensions between the United States and China refuse to slow down, Vietnam-based plywood exporters are under pressure of investigation for alleged issues with the sources of their input materials.

Local wood industry overshadowed by sourcing issues
Local wood industry overshadowed by sourcing issues
BUSINESSicon  05/09/2020 

Vietnam’s wood industry has shown signs of recovery in the third quarter of 2020. However, legal complications may arise through illegally-sourced raw materials from foreign suppliers and a lack of uniformity.

Consumers beware of e-swindlers preying on fledgling cashback apps
Consumers beware of e-swindlers preying on fledgling cashback apps
BUSINESSicon  06/09/2020 

While cashback is considered a strong method to encourage cashless payments, numerous websites and apps are taking advantage of uninformed consumers with untransparent and illegal multi-level marketing models.

One fewer thing to worry for enterprises
One fewer thing to worry for enterprises
BUSINESSicon  06/09/2020 

Businesses will have one fewer thing to worry about in 2021 as the minimum wage is not expected to be increased for privately-owned enterprises.

New strategies required to set deeper roots for wood industry
New strategies required to set deeper roots for wood industry
BUSINESSicon  06/09/2020 

To expand Vietnam’s wood industry sustainably, its development strategy must not only focus on the policies of importing countries but also domestic priorities.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 7
BUSINESSicon  07/09/2020 

Breakthrough solutions needed to attract foreign investment

Four Vietnamese-born billionaires in the US
Four Vietnamese-born billionaires in the US
BUSINESSicon  06/09/2020 

These are the most famous businessmen of Vietnamese origin in the US.

Airline service fees reduced by half for next six months
Airline service fees reduced by half for next six months
BUSINESSicon  05/09/2020 

Fees for takeoff and landing and aircraft operating services for domestic flights will continue to be cut by 50 per cent for the next six months to support airlines affected by the COVID-19 pandemic, according to a Transport Ministry circular.

More Vietnamese consumers now shop online
More Vietnamese consumers now shop online
BUSINESSicon  07/09/2020 

Online shopping and electronic payments in Vietnam have become more common in recent years as more of the country's population gains access to the internet, 

Funds enjoy growth in August
Funds enjoy growth in August
BUSINESSicon  05/09/2020 

Investment funds involved in Vietnam’s equity market reported positive growth in net asset value (NAV) in August due to a stock market upturn.

Local authorities tighten control over investments in condotels
Local authorities tighten control over investments in condotels
BUSINESSicon  07/09/2020 

Hanoi local authorities are seeking to strengthen management over the construction, investment and trade of condotels, officetels and resort villas.

Vietnam aims to diversify local retail market
Vietnam aims to diversify local retail market
BUSINESSicon  05/09/2020 

The Ministry of Industry and Trade (MoIT) plans to consolidate traditional markets in rural areas while developing a large number of convenience stores and diversifying types and methods of modern business.

Auto manufacturers in Thailand, Indonesia look to Vietnam to sell cars
Auto manufacturers in Thailand, Indonesia look to Vietnam to sell cars
BUSINESSicon  07/09/2020 

Car imports in Vietnam have increased again after a long slump caused by the impact of Covid-19. Thailand and Indonesia have been the biggest sellers.

 
 
 
Leave your comment on an article

OR QUICK LOGIN