VIB Bank is liquidating a nearly 540 square meter plot of land on Nguyen Van Khoi Street (Ward 8, Go Vap District) for nearly VND60 billion. In Hoc Mon District, the bank is also liquidating a 790 square meter house and warehouse for VND28 billion. These are assets that customers have mortgaged and are no longer able to repay their debts.
Many land plots in Ho Chi Minh City are being liquidated by banks due to bad debts. (Illustration photo: D.V)
In addition to the above assets, VIB Bank is also liquidating about 800 real estates with prices ranging from several hundred million VND to several tens of billion VND. The real estates are located in many localities such as Ho Chi Minh City, Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh... In addition, VIB is also liquidating 27 cars of various types with prices ranging from 250 million VND to 1.4 billion VND.
Vietinbank has also just announced the auction of 3 collateral assets including a house in Tan Phu district and two houses in Thu Duc city, Ho Chi Minh City. The total value of these 3 assets is more than 31.6 billion VND.
In addition, the bank also announced the auction of two houses located next to each other on Nguyen Kiem Street, Phu Nhuan District with a starting price of 14.5 billion VND.
In addition to the above houses, Vietinbank is also auctioning, looking for auction organizations and liquidating hundreds of assets of people and businesses. The value of the assets ranges from several billion VND to hundreds of billion VND.
The house on Huynh Tan Phat Street (District 7, Ho Chi Minh City) was liquidated by the bank in early December 2024 for more than 6.8 billion VND. (Photo: D.V)
Notably, among the customers “stuck” with bad debt, there are individuals whose assets have been seized. A typical example is the case of Ms. PTHN and Mr. LHH whose 21 plots of land in Can Tho City were seized by LPbank. The plots of land have an area of 87 - 8,300 m2 and are located in Thot Not district.
In addition, Mr. H and Ms. N also had a luxury apartment of 187 square meters in Ho Chi Minh City and an expensive car confiscated. Mr. H and Ms. N had many assets confiscated because they did not fulfill their debt repayment obligations under the two signed credit contracts.
Some other banks such as VietBank and OCB are also actively announcing the seizure, handling of collateral assets as well as liquidation of assets. Hundreds of houses, lands, cars, and machinery are being advertised for sale at the end of the year.
Many cars are also being liquidated and auctioned by banks. (Photo: D.V)
Mr. Dinh Thanh Long, a debt settlement specialist at a bank, said that in 2024, the amount of bad debt assets that need to be liquidated showed signs of increasing more than in previous years. People's work and business encountered many difficulties, causing them to lose their ability to pay their debts.
According to Mr. Long, debt settlement during this period also faces many challenges. Typically, asset liquidation has very few buyers. Many assets have been auctioned 4-5 times but no one has closed the deal even though the price has been reduced by more than 10%.
“We auctioned a house in Phu Nhuan district for 17 billion VND but no one bought it. The fourth time, we reduced the price to 15 billion VND but still could not sell it. Liquidity is very weak,” said Mr. Long.
According to Mr. Long, some assets take a long time to process because it depends on the progress of the court, the enforcement force, etc. This process can take 2-3 years to complete.
Financial reports for the first 9 months of many banks show that the bad debt ratio is increasing. Typically, Vietinbank, as of September 30, had a total bad debt of about VND23,225 billion, an increase of 40% compared to the beginning of the year. The ratio of bad debt/total outstanding debt increased from 1.13% at the beginning of the year to 1.45%.
Or at VPBank, the total bad debt of this bank is more than 30,531 billion VND, an increase of 22% compared to the beginning of the year. Of which, the debt with the possibility of losing capital (group 5 debt) increased sharply, from 4,362 billion VND to 7,354 billion VND after only 9 months.
According to the State Bank, by the end of the third quarter of 2024, the total bad debt at banks was about VND250,000 billion, equivalent to a rate of 2.26%. The on-balance sheet bad debt ratio (bad debt that is still being monitored) was at 4.55%, a sharp increase compared to 2% in 2022. Bad debt pressure is increasing at many banks.
Explaining the reason for the increase in bad debt, the State Bank said that many customers who have been in difficulty since the COVID-19 pandemic have just resumed production and business due to the application of policies to restructure debt repayment terms, maintain debt groups and provide new loans. However, this group of customers continued to suffer losses due to the recent storm No. 3, so they are almost unable to recover and do not meet new loan conditions, leading to an increased risk of bad debt.
Source: https://vtcnews.vn/ngan-hang-rao-riet-ban-ca-loat-nha-xe-dinh-no-xau-ar913006.html
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