Specifically, in the list of collateral assets that need to be processed to recover VietinBank's debt, there are 358 real estates, 38 means of transport, machinery, equipment... worth up to more than 8,000 billion VND. The method of sale is auction or negotiation.

The largest asset on this list is a 5-star hotel in Da Nang City, built on an area of ​​1,200 ^m2 , with 236 rooms, for sale at 600 billion VND.

The second largest asset is a 4-star hotel in Hoi An (Quang Nam), with over 100 rooms, for sale at 420 billion VND. In addition, there are many 3-4 star hotels, homestays, and villas with prices ranging from tens to hundreds of billions of VND.

In Ho Chi Minh City, Binh Duong, Dong Nai, Can Tho... there are also dozens of other real estate properties that VietinBank is selling with values ​​ranging from tens to hundreds of billions of dong.

A clean water plant with a capacity of 9,000 ^m3 /day and night in Chu Se District (Gia Lai) is being sold for more than 108 billion VND; a wood product processing factory in Phong Dien District (Thua Thien Hue) is being sold for nearly 20 billion VND...

In addition to the announcement of selling assets to recover debt, VietinBank also offered to sell 566 consumer loans ranging in size from several hundred thousand VND to nearly 200 million VND with the price collected being only 90% of the book value (including principal, interest and penalty interest).

The situation of many banks selling collateral such as real estate, cars, and debts has become more common recently. The State Bank also reported that the bad debt ratio of the whole industry increased to 2.91% at the end of February 2023, compared to the end of 2022.

It's not easy to sell real estate at this time.

Speaking to Thanh Nien , Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that there is no need to wait for banks to sell off collateral, the "death" of many businesses, hotel and restaurant owners has been predicted since the Covid-19 outbreak. This situation is most obvious in areas with developed coastal tourism such as Nha Trang (Khanh Hoa), Phu Quoc (Kien Giang), Hoi An (Quang Nam), Ha Long (Quang Ninh) ...

"When the Covid-19 pandemic was pushed back, political instability in Eastern Europe broke out, dealing another fatal blow to tourism in Vietnam, which has a large number of visitors from this region and China. Meanwhile, domestic tourism only flared up strongly in a short period of 2022 and then gradually died down. In 2023, the entire world and domestic economy took a hit, so the income of the majority of people decreased, and tightening spending was inevitable. In particular, tourism demand will often be cut first. This is the main reason why tourism real estate in coastal areas is sluggish even in the summer. And of course, restaurants, hotels, homestays... of investors without long-term capital will be seized by banks and put up for sale to recover loans," said Mr. Dinh.

The Chairman of VARS said that recently, coastal tourism real estate has been sold at much lower prices than before the Covid-19 pandemic. Although the prices have been reduced, liquidity is very poor because the cash flow into real estate is very weak because investors have difficulty accessing credit capital. Meanwhile, if you only rely on accumulated and idle money, it is difficult to buy coastal tourism real estate.

Therefore, Mr. Dinh believes that it will not be easy for VietinBank to liquidate the above real estate. To successfully liquidate, it should consider accompanying financial support policies for buyers of large assets for auction, and successfully negotiate secured assets. Of course, the review of these financial support conditions must be strict to avoid bad debt on top of bad debt.