The North Ho Chi Minh City branch of the Vietnam Bank for Agriculture and Rural Development (Agribank) recently announced a new auction for the debt of Vuong Diem 97 Co., Ltd. - a fertilizer manufacturer based in Ho Chi Minh City.

The debt originated from Credit Contract No. 6421-LAV-201900254, signed on July 22, 2019, along with subsequent amendments between Agribank and the company.

As of August 31, 2024, the total book value of the debt - including principal, current interest, overdue interest, and other fees - was approximately 162.37 billion VND (around 6.65 million USD).

This includes 120 billion VND (4.92 million USD) in principal and 42.37 billion VND (1.74 million USD) in interest.

Interest will continue to accrue from September 1, 2024, until the company settles the full obligation with Agribank.

The starting price for the auction has been set at 120.78 billion VND (roughly 4.95 million USD). Interested bidders must place a deposit equivalent to 10% of this amount.

This starting price reflects a 10 billion VND (about 410,000 USD) reduction from the amount offered during the bank's September 2024 auction. However, the debt has yet to attract a successful bid despite several attempts.

The debt is secured by 21 land-use rights for residential properties located in Xuan Hoa Ward, Phu Tho Province (formerly Ngoc Thanh Commune, Phuc Yen City, Vinh Phuc Province). These are all rural residential lots individually owned, with a total area of nearly 6,300 square meters. Each plot ranges from 250 to 450 square meters.

Agribank is not alone in its struggle.

The Bank for Investment and Development of Vietnam (BIDV) is also auctioning a bundled debt package worth 173 billion VND (about 7.09 million USD) owed by Ha Long Port Business JSC (96.09 billion VND) and Southeast Asia Logistics JSC (76.87 billion VND).

The starting price for this combined debt package is 121 billion VND (roughly 4.96 million USD). Previous auction attempts also failed to generate interest.

According to BIDV, the collateral for Ha Long Port Business JSC's loan includes four land-use rights in Ha Long City, Quang Ninh Province, covering a total of over 55,000 square meters, held by the company and several individuals.

The collateral for Southeast Asia Logistics JSC includes four land-use rights in Ha Long totaling 290 square meters, mining rights in Thong Nhat Commune (Quang Ninh), and all of the company’s shares.

Tuan Nguyen