VietNamNet Bridge - Chair of the board of directors of the Bank for Investment and Development of Vietnam (BIDV) Tran Bac Ha said the government has decided to restructure of debts of the Hoang Anh Gia Lai Group.

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Chair of the board of directors of BIDV Tran Bac Ha 

Zing.vn has quoted BIDV’s Ha as saying that the commercial banks that are creditors of Hoang Anh Gia Lai have been asked to help debt restructuring.

“It is the government, not me, which decided to restructure some debts for Hoang Anh Gia Lai,” Ha told reporters on the sidelines of the conference on promoting tourism and investment in Lai Chau province on April 23.

Hoang Anh Gia Lai Group is owned by Doan Nguyen Duc, one of Vietnam's most influential businessmen. 


The group’s financial report showed that its accounts payable have reached VND27.099 trillion, which included VND8.297 trillion is due in 2016. Of the total debts by December 31, 2015, short-term debts accounted for 31 percent.
The group’s financial report showed that its accounts payable have reached VND27.099 trillion, which included VND8.297 trillion is due in 2016. Of the total debts by December 31, 2015, short-term debts accounted for 31 percent.

BIDV is now the biggest creditor of Hoang Anh Gia Lai to which Hoang Anh Gia Lai owes VND10.7 trillion. 

Eximbank is the second largest creditor which lent VND3.156 trillion in long-term loans. The Asia Commercial Bank (ACB) and ACB Securities are third with VND2 trillion, or 9 percent of Hoang Anh Gia Lai’s total debts.

The 2015 audited financial report has raised concerns about the financial situation of the powerful conglomerate.

The bank debts worth tens of trillions of dong have forced the big boss to mortgage valuable assets, including shares, cows, real estate projects, rubber fields and football academy to get loans.

Sources said that commercial bank creditors met in Hanoi some days ago to discuss the debt restructuring of the conglomerate.

The creditors have agreed to extend the deadline for Hoang Anh Gia Lai’s payment of principal and loan interest to make it fit the conglomerate’s cash flow.

The banks would submit to the State Bank of Vietnam a plan which allows the classification of Hoang Anh Gia Lai’s debts. This will allow Hoang Anh Gia Lai to have money to keep its operation and make money to pay debts.

BIDV’s shareholders raised a lot of questions about the loans the bank provided to Hoang Anh Gia Lai at the bank’s shareholders’ meeting held on April 24.

Ha said Hoang Anh Gia Lai is a good customer which keeps good credit relations with the bank over the last 20 years. 

Meanwhile, the mortgaged assets are valued at 1.8 times higher than the outstanding loans of VND10.5 trillion. Therefore, not only BIDV, but the other 9 banks also have agreed to allow Hoang Anh Gia Lai to restructure its debts.


H. Tu