Vinaxuki said the factory and its assets, such as machinery and land-use rights, had been mortgaged to take loans from banks and other organisations. — Photo tintuc

HA NOI (Biz Hub) — Xuan Kien Auto JSC (Vinaxuki) will sell its manufacturing factory Me Linh 1 in Ha Noi to repay its creditors, the company's Director General Bui Ngoc Huyen announced last month.

The decision was made after Vinaxuki received debt notices from the creditors, including banks and financial organisations, and the factory's assets were found to have been stolen.[P1]

Vinaxuki said the factory and its assets, such as machinery and land-use rights, had been mortgaged to take loans from banks and other organisations.

Currently, there are few employees at the Me Linh 1 factory, most of them being security guards, Vinaxuki said.

By the end of last year, Vinaxuki owed large banks a total of VND1.6 trillion ($73.4 million), including BIDV and Vietcombank.

Due to the rising interest rate and declining economy, some of the debts have become outdated. Vietcombank has recently sold its debt in Vinaxuki to the Vietnam Assets Management Company.

Vinaxuki is also among 200 companies that have not paid taxes, according to the Ha Noi Tax Department. By the end of June, Vinaxuki will owe a total of VND17.7 billion ($811,926) in tax.

In May, the Ha Noi Inspectorate reported that Vinaxuki owed VND9.8 billion ($449,540) for social insurance and health insurance last year. —  VNS