Banks boost sales of mortgaged real estate to recover bad debts
Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of Vietnamese đồng, to recover debts amid the recovery of the realty market.
Vietcombank has just announced the sale of many properties as collateral to recover debts worth nearly VNĐ1.2 trillion. The assets include more than 70,000sq.m of industrial park land and factories attached to the land in the Việt Nam-Singapore 2 and VSIP industrial parks, Bình Dương Province.
They also include assets equal to 20 per cent of PV GAS Tower in HCM City. The 15-floor tower covers an area of 7,441sq.m. The bank announced the starting price for the properties at more than VNĐ423 billion.
Similarly, VietinBank has just announced the sale of the right to use more than 8,000sq.m of land and attached assets in Sóc Trăng and Bạc Liêu to recover debts of Mỹ Hưng Co., Ltd.
Previously, in November, VietinBank also offered to sell nearly 50,000sq.m of land for perennial crops in Đồng Nai Province. The bank set the starting price for the real estate, which is collateral for the loan of the Industrial Construction Joint Stock Company, at nearly VNĐ100 billion.
Agribank is offering land use rights of more than 2,000sq.m in Thủ Đức City at a starting price of VNĐ58 billion. This is the collateral for loans of Phú Cường Construction Design Trading Service Co., Ltd.
In December, Agribank also auctioned some real estate in HCM City’s District 1 with a starting price of VNĐ20-25 billion.
BIDV is also selling land lots in cities of Thủ Đức, HCM City and Hà Nội, and Ninh Bình Province.
According to experts, banks have pushed up the sale of mortgaged real estate to recover debts in the context of rising bad debts due to the negative impacts of the COVID-19 pandemic while having favourable conditions thanks to the recovery of the real estate market.
According to data from the State Bank of Việt Nam, the banks’ bad debt ratio by the end of June 2021 was 1.73 per cent against 1.69 per cent at the end of 2020. Meanwhile, most of the collateral for bank loans is real estate. In the group of State-owned banks, real estate usually accounts for 70-90 per cent of total collateral.
Meanwhile, the recovery of the real estate market is helping banks to sell collateral.
A survey conducted by property consultant Savills Vietnam revealed that real estate value has increased by 30-40 per cent in most residential segments this year. In Việt Nam, residential real estate is still tending to increase in many areas, especially big cities and provinces despite the pandemic.
According to Savills Vietnam’s experts, with an average gross domestic product growth rate of 6-7 per cent, Việt Nam is evaluated as an ideal destination for investment, compared to other countries in the region, particularly in real estate. There are many investment opportunities for inpidual investors when participating in this market in 2022. — VNS
Related News
State budget revenue for 2024 nears target
10:06 | 08/11/2024 Finance
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance
More efficient thanks to centralized payments between the State Treasury and banks
13:51 | 17/10/2024 Finance
Ministry of Finance responds to information on proposal to tax real estate
08:20 | 01/10/2024 Finance
Latest News
Launching virtual assistants to support taxpayers
17:50 | 23/11/2024 Finance
Banks increase non-interest revenue
10:51 | 23/11/2024 Finance
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
More News
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance
State-owned securities company trails competitors
14:46 | 20/11/2024 Finance
Strengthening the financial “health” of state-owned enterprises
09:23 | 20/11/2024 Finance
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Exchange rate fluctuations bring huge profits to many banks
13:43 | 19/11/2024 Finance
A “picture” of bank profits in the first nine months of 2024
09:42 | 19/11/2024 Finance
Many challenges in restructuring public finance
10:02 | 18/11/2024 Finance
Your care
Launching virtual assistants to support taxpayers
17:50 | 23/11/2024 Finance
Banks increase non-interest revenue
10:51 | 23/11/2024 Finance
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance