Hanoi (VNS/VNA) - Anumber of banks have announced plans to auction off their collateral assets inan attempt to speed up bad debt recovery.

On the website of VietinbankDebt Management and Asset Exploitation Co Ltd (Vietinbank AMC), since thebeginning of July, Vietinbank has put six properties up for sale worth at least223 billion VND (9.6 million USD). This value is based on the initial sellingprice of the auctioned assets.

The highest starting price is 190billion VND for the land use rights and ownership of houses and otherproperties attached to a 3.23ha land situated at the Can Tho Centre complex.

Other properties on saleinclude 2ha land plot use right at the Tam Hiep industrial park and portlogistics at 10 billion VND and nearly 90 hectares of rubber trees and attachedbuildings in Dak To district, Kon Tum province at over 7.8 billion VND.

A collateral asset including 30land use rights and land-attached assets with an area of more than fivehectares in Ky Son district, Hoa Binh province will also be auctioned to handledebt worth 105 billion VND of Viet Thai Steel Joint Stock Company.

By the end of March, totalnon-performing loans of Vietinbank increased 56 percent compared to the startof the year, driving the bad debt ratio to 1.83 percent from 1.16 percent.

Since April, BIDV has also putup many properties for sale to resolve bad debts.

Last week, BIDV’s Quang Tribranch put up four assets pledged as security for loans for sale with startingprice of 88 billion VND.

This month, BIDV also auctionedcollateral assets of Truong Phat Investment Trading and Services JSC. Thecompany’s debts as of February reached nearly 105 billion VND. The collateralasset is the land use right of 2,832m2 land in Ba Dinh district, Hanoi, beingauctioned for at least 100.5 billion VND.

Earlier, BIDV’s Gia Dinh branchauctioned 65 apartments in the Era Town project in district 7, HCM City, withthe starting price ranging from 2.1 billion VND to 5.5 billion VND perapartment.

Sacombank is also sellingbuildings, a sports complex and land in Binh Tri Dong district, HCM City, withthe starting price of more than 6 trillion VND.

Adverse impacts of the COVID-19pandemic have pushed many companies to their limits and forced banks to puttheir debts up for auction. However, as the real estate market has been in adifficult period since the latter half of last year, many high-value propertieshave struggled to find buyers.

Some of BIDV's mortgages havebeen sold for the third time but have yet to be sold while assets auctioned bySacombank could not be transferred despite the bank has reduced the sellingprice./.