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Mar 30, 2018 / 10:46

VAMC to auction Saigon One Tower project

Ngoc Thuy

The Saigon One Tower project - the first mortgaged asset seized by Vietnam Asset Management Company (VAMC) for bad debt will be auctioned with the starting price of VND6.1 trillion (US$267 million), announced VAMC on March 27.

Consequently, VAMC will auction the ownership, the right of operation of the whole construction consisting of underground basements, a trading center, offices for lease, and other additional constructions. 
 
The Saigon One Tower project - the first mortgaged asset seized by Vietnam Asset Management Company (VAMC) for bad debt
The Saigon One Tower project - the first mortgaged asset seized by Vietnam Asset Management Company (VAMC) for bad debt.
With the starting price of VND6.1 trillion (US$267 million), according to VAMC, enterprises who want to hold the auction have to propose a feasible auction plan, in addition to having appropriate infrastructure and a list of previous successful auctions worth VND100 billion (US$4.4 million) onwards.
VAMC seized this project after Saigon One Tower JSC, the developer of Saigon One Tower, failed to pay off its debts to VAMC worth VND7 trillion (US$308 million). 
Main shareholders of Saigon One Tower JSC included M&C (49%), Saigontourist (30%), Dong A Bank (6%), Dong A Securities (10%) and Phu Nhuan Jewelry (5%), in which the latter three shareholders have completed divestment later. 
VAMC previously signed a debt purchase contract with a number of credit institutions for the debts of a group of customers, including Saigon One Tower JSC, Lien Phat Investment JSC, Minh Quan Investment and Construction Consultant JSC, and Tan Superdeck M&C JSC.
Saigon One Tower has a total space of more than 6,670 square metres with the total investment capital of VND5 trillion (US$256 million), including a 46-storey building consisting of retail properties, offices for lease, and high-end apartments for sale. The project has been stalling since 2011 after 80% of the construction was finished.
The auction of Saigon One Tower had been scheduled to be on last September but failed to materialize. 
Sai Gon One Tower is the asset mortgaged for bad debt worth VND7 trillion that Maritime Bank and Dong A Bank transferred to VAMC in April 2015 since the Resolution No.42 on settling bad debts took effect. 
VAMC set the target of handling VND140 trillion (US$6.1 billion) worth of bad debts it had purchased in 2018.
By the end of 2017, VAMC has purchased more than 26,000 debts from 42 credit institutions worth VND307 trillion (US$13.4 billion) at original value for price of VND277 trillion (US$12.1 billion), announced the Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Kim Anh at VAMC's meeting reviewing the company's target in 2018.

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