VietinBank Branch 7, Ho Chi Minh City has just announced the auction of the debt of Vo Thi Thu Ha Import-Export Trading Company Limited (address 186 Phan Xich Long, Ward 2, Phu Nhuan District, Ho Chi Minh City, with Ms. Vo Thi Thu Ha as director).

Vo Thi Thu Ha Import-Export Trading Company Limited (Vo Thi Thu Ha Company) was established in 2011, operating in the field of purchasing rice, coffee and other agricultural products. Just two years later, in October and November 2013, the company had two consecutive loans at VietinBank Branch 7.

The total value of provisional debts as of October 31, 2023 is 1,500 billion VND (of which the principal balance is more than 567 billion VND, the interest debt within the term is 624 billion VND, and the overdue penalty interest is 303 billion VND).

However, VietinBank announced that the starting price for the auction of the above debt is only 142 billion VND. The auction is scheduled to take place on December 15, 2023.

In February 2023, VietinBank announced an unsuccessful auction of Vo Thi Thu Ha Company's debt. The starting price at that time was VND148 billion, VND6 billion higher than the current price.

The assets securing the above debt include: 5 land use rights and assets attached to the land in Quarter 1, Chon Thanh town, Chon Thanh district, Binh Phuoc province; 4 land use rights and assets attached to the land in Tan An ward, Thu Dau Mot city, Binh Duong province; 4 warehouses, construction works, machinery and equipment in Dong Thap province; Mortgaged goods according to mortgage contracts based on sales contracts, invoices, and warehouse receipts.

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Vo Thi Thu Ha Company operates in the field of purchasing agricultural products. (Illustration photo).

The difficulty in liquidating debts/assets to recover bad debts is common in banks. After many unsuccessful auctions, the bank has had to continuously lower the starting price of the assets.

Agribank Thang Long Branch recently continued to announce the auction of collateral assets, which is a BMW X5 car, registration number 30E-372.27 issued by the Traffic Police Department of Hanoi City Police on September 20, 2016, to Nam Tien Trading and Production Company Limited.

The starting price of the property as announced by Agribank Thang Long Branch is 972.81 million VND. Notably, in the latest auction announcement on October 18, Agribank gave the starting price for this car as 1.2 billion VND.

Another notable auction announcement is that Agribank Hai Phong Branch recently planned to auction a Manhattan villa in Vinhomes Imperia Hai Phong Urban Area, Thuong Ly Ward, Hong Bang District, area 142.1m2.

The property is owned by Gia Trang Trading Joint Stock Company, a leading petroleum trading enterprise in Hai Phong. The starting price for this property is 18 billion VND, the auction is expected to take place on December 8, 2023.

Speaking with PV. VietNamNet, a deputy general director of Agribank said that with the characteristic of prioritizing small retail customers and not concentrating too much capital on one large customer, the bank is still controlling the bad debt situation well.

Furthermore, since April 2023, the State Bank has issued a policy on debt restructuring and maintaining the debt group (Circular 02), which is also an effective solution to support customers.

“We are still controlling the bad debt ratio at under 1.9%, this ratio has increased but is still under control,” said the deputy general director of Agribank.