No credit granted to four Thu Thiem land auction winners

Monday, Jan 17, 2022 17:41

Land lots in Thu Thiem new urban area that were auctioned recently. — Phto

Commercial banks did not grant credit to four real estate businesses that won the auction of land use rights in the Thu Thiem new urban area, according to the State Bank of Vietnam.

Dream Republic Corporation, Sheen Mega JSC, Binh Minh Investment Development and Trading Co, Ltd, and Viet Star Real Estate Investment Co, Ltd bid a total price of VND 37.4 trillion (US$1.64 billion) for one plot each.

Viet Star Real Estate Investment Co, Ltd, a subsidiary of Tan Hoang Minh Group, bid VND24.5 trillion ($1.08 billion), the highest price ever paid for one square metre of land anywhere in the country.

But on January 10 Tan Hoang Minh Group chairman Do Anh Dung wrote letters to Party and State leaders, saying the company would not go ahead with the purchase.

Speaking at a meeting which the SBV held on Saturday to review the performance of the banking sector in 2021 and set tasks for this year, Nguyen Van Du, acting chief inspector of its Banking Supervision Agency, said, "The review shows so far no credit institution has provided loans to these businesses to take part in the Thu Thiem land auction.”

Priority lending in manufacturing sector

Permanent Deputy Governor of the SBV, Dao Minh Tu, said this year banks would prioritise lending to the manufacturing sector and those affected by the COVID-19 pandemic such as tourism, transport and hospitality.

Lending to risky sectors such as real estate, securities and corporate bonds would be tightened even more than last year, he said.

“There have been some ‘hot’ issues related to the real estate sector recently. The State Bank of Vietnam closely monitors and will hold symposiums on these issues to warn, orient and strengthen control over funding to [risky] sectors."

Nguyen Duc Lenh, deputy director of the SBV’s HCM City branch, said there would be measures to mitigate the difficulties faced by businesses this year.

They include providing support in accordance with SBV circulars on restructuring of loan repayment periods, waiving and reducing interest, and providing new loans at preferential interest rates to fund business recovery.

His branch would also strengthen a regular city programme to link enterprises and banks to enable credit, he added. — VNS

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