According to Sacombank’s report, the bank has sold the collateral in Duc Hoa III Industrial Park, Long An Province on December 29, 2017, at a price of VND9.2 trillion ($404 million).
The collateral consists of three land plots in the Duc Hoa III related to Tram Be, former Vice Chairman of Sacombank from 2012 to 2015.
However, Sacombank said that the bank received only VND920 billion ($40.4 million) of deposits. The remaining of VND8.28 trillion ($363 million) will be paid within seven years from the date of signing the contract with the grace period in the first two years and interest rate of 7.5 per cent per year.
Thus, in order to handle a large-scale non-performing loan, Sacombank sold the collateral and recorded a huge amount of other receivables for a seven-year period.
The settlement of bad debt has contributed significantly to achieve the target of handling VND19 trillion ($834 million) of bad debts and outstanding assets in 2017 of the bank. This achievement is attributed to the role of Duong Cong Minh, Chairman of Sacombank since mid-2017.
According to the bank's report, the bad debt rate of Sacombank has decreased from 6.68 per cent from the beginning of 2017 to 4.28 per cent at the end of the year and is expected to decrease to 3 per cent in 2018.
Source: Sacombank's financial statement.Sacombank did not reveal the lucky customer who bought the collateral and received a seven year deferred payment from the bank.
In another development, at the meeting held on March 02, 2018 among the People's Committee of Long An province and other departments, Him Lam Corporation proposed to turn seven industrial park members in Duc Hoa III into residential land. This proposal has been approved in principle by departments.
Him Lam is a real estate company associated with the name of Duong Cong Minh and Lien Viet Post Bank. However, Minh has no longer served as the Chairman of Him Lam and the company has also withdrawn capital from LienVietPost Bank.
Him Lam is one of the real estate investors who has just landed in Long An along with Vingroup, FLC, TTC Land, etc., creating a new wave of investment in this market.
Recently, a transaction registered for collateral sales between Him Lam and LienVietPost Bank was made. The collateral includes all profits gained from the business and use of the land lot valued at more than VND4 trillion ($175 million).
