PV GAS Tower in HCM City is among many mortgaged real estate assets that banks offer to sell to recover debts (Photo: pots.com.vn) Hanoi (VNS/VNA) - Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of VND, 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 1.2 trillion VND. The assets include more than 70,000sq.m of industrial park land and factories attached to the land in the Vietnam-Singapore 2 and VSIP industrial parks in Binh Duong province.
They also include assets equal to 20 percent of PV GAS Tower in Ho Chi Minh City. The 15-floor tower covers an area of 7,441sq.m. The bank announced the starting price for the properties at more than 423 billion VND.
Similarly, VietinBank has just announced the sale of the right to use more than 8,000sq.m of land and attached assets in Soc Trang and Bac Lieu to recover debts of My Hung Co., Ltd.
Previously, in November, VietinBank also offered to sell nearly 50,000sq.m of land for perennial crops in Dong 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 100 billion VND.
Agribank is offering land use rights of more than 2,000sq.m in Thu Duc city at a starting price of 58 billion VND. This is the collateral for loans of Phu Cuong 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 20-25 billion VND.
BIDV is also selling land lots in cities of Thu Duc, HCM City and Hanoi, and Ninh Binh 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 Vietnam, the banks’ bad debt ratio by the end of June 2021 was 1.73 percent against 1.69 percent 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 percent 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 percent in most residential segments this year. In Vietnam, 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 percent, Vietnam 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 individual investors when participating in this market in 2022./.
VNA
