Banks selling mortgaged assets to recover bad debts

Many banks are rushing to sell mortgaged assets to recover bad debts, as these types of debts are forecast to increase slightly this year.
Banks selling mortgaged assets to recover bad debts
The entrance gate to Hà Nội’s Ciputra Urban Area, where banks are selling apartments and villas. Bad debts may continue to increase in 2025 after a circular allowing banks to reschedule the debt repayment period and maintain the debt group for certain sectors expired at the end of 2024. Photo cafef.vn

Many banks are rushing to sell mortgaged assets to recover bad debts, as these types of debts are forecast to increase slightly this year.

VietinBank has recently announced a plan to auction off assets to recover debts from Bio-Zem Joint Stock Company. The auctioned asset is a 145sq.m apartment in Hà Nội’s Ciputra Urban Area. VietinBank offers a starting price of VNĐ8.8 billion for this asset.

Agribank has also announced the auction of two luxury villas in the Ciputra Urban Area owned by another inpidual. The first property, which is a 400sq.m villa, is mortgaged for loans to Thành An Trading Company Limited and Dung Phát Trading and Construction Company Limited. The starting price for the asset is VNĐ166.5 billion, a decrease of more than VNĐ38 billion compared to the previous offering in August 2024.

The second property is a 230sq.m villa and is secured for a loan from Minh Ngoc International Import-Export Investment Trading Company Limited. The starting price of this property is VNĐ75.3 billion, a decrease of more than VNĐ17 billion compared to the offering in August 2024.

BIDV has recently announced the auction of all debts of Phú Sơn Cement Joint Stock Company. One of the assets securing the loan is VIP Hanoi International Primary School.

Phú Sơn Cement Joint Stock Company's debt at BIDV as of November 15, 2024 is more than EUR19.7 million (US$20.5 million), of which the principal balance is EUR7 million and interest debt is more than EUR12.7 million.The value of the debt after conversion at November exchange rates is more than VNĐ529 billion, and BIDV wants to sell the debt at a starting price equal to the value of the debt.

Banks are also selling cars to recover debts. GPBank has announced the auction of a used Audi car at a starting price of more than VNĐ1.3 billion.

BIDV has also chosen an organisation to auction assets including 14 KIA trucks. All of these vehicles were registered in 2019 in Hà Nội for a starting price of more than VNĐ1 billion.

In a recent report on the banking industry, Việt Dragon Securities Company (VDSC) said that bad debts might continue to increase slightly this year, after a circular allowing banks to reschedule debt repayment periods and maintain the debt group for certain sectors expired at the end of 2024.

Specifically, the outstanding debts that were restructured under Circular 02/2023/TT-NHNN as of the end of August 2024 stood at about VNĐ126 trillion. Part of this outstanding debt may become bad debt this year.

However, VDSC analysts believe that the rise in bad debt after Circular 02 expires will not greatly affect the ability to control bad debts on the banks’ balance sheet, because many banks have taken relatively sufficient measures to stabilise it. In the list of 10 banks that VDSC monitors, the restructured debt balance has gradually decreased and stabilised at around VNĐ40 trillion in the past year.

VDSC estimates the provisioning ratio and restructured debt balance to be above 50 per cent. The expiration of Circular 02 is expected to affect bad debts at a few private banks in 2025.

Source: VNA
vietnamnews.vn

Related News

Latest News

Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN – The positive factors inherent in the macro economy and the Vietnamese stock market will continue to create the foundation for the market to maintain stability, good liquidity, and growth in both scale and quality in the new year of At Ty 2025, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said.

More News

Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday

VCN- On February 3, the first working day after the Tet holiday, Minister of Finance Nguyen Van Thang and the delegation visited and worked with the General Department of Vietnam Customs (GDVC).
The stock market after Tết 2025 presents both challenges and opportunities

The stock market after Tết 2025 presents both challenges and opportunities

Việt Nam’s stock market following the 2025 Lunar New Year (Tết Nguyên Đán) presents a complex landscape of risks and potential gains, driven by foreign capital inflows, economic resilience, and looming corporate bond maturity pressures, according to one securities expert.
Opportunities and challenges in Việt Nam

Opportunities and challenges in Việt Nam's crypto boom

Việt Nam boasts one of the most active investment communities in the cryptocurrency sector. However, protecting investors and promoting sustainable growth requires a robust legal framework.
Đà Nẵng aiming to become a regional financial centre before 2050

Đà Nẵng aiming to become a regional financial centre before 2050

The city is setting out goals to promote the development of the financial system in the 2021-30 period, striving for Đà Nẵng to become a regional financial centre in just 25 years.
Which investments to make in 2025?

Which investments to make in 2025?

Financial reports indicate a large amount of cash in the banking system at the end of 2024. Investors in 2025 will have plenty of choices of where to put their money, according to economists and financial analysts.
5 strategies for reallocating houses and land

5 strategies for reallocating houses and land

VCN - The rearrangement and disposal of public-owned houses and land have been officially regulated in Decree No. 03/2025/ND-CP (Decree No. 03), which has just been issued by the Government. According to Decree No. 03, there are five forms of rearrangement and disposal of houses and land.
Stock market expected to rebound positively after Tết holiday: expert

Stock market expected to rebound positively after Tết holiday: expert

Currently, the VN-Index is fluctuating within a wide range of 1,200 to 1,300 points. Without a decisive breakout in either direction, this level of liquidity remains typical.
Read More

Your care

Latest Most read
Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trilli
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN - The market maintained stability, good liquidity, discipline was improved, increasing transparency and sustainability.
Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Mobile Version