VietinBank auctions Hanoi Cầu Giấy land for debt recovery

The debt belongs to Đại Kim and is being sold “as is” and without recourse after payment deadlines were missed. As of Aug. 11, 2026, the balance stood at about 625 billion dong, including more than 441 billion dong of principal and over 184 billion dong of interest, according to the notice from VietinBank’s Đông Anh branch.

The collateral includes land-use rights and assets attached to the land at lot C/D13 in the Cầu Giấy New Urban Area, bordered by Thành Thái, Trương Công Giai, Khúc Thừa Dụ and alley 102 Khúc Thừa Dụ. The site was previously earmarked for the Five Star Residence Cầu Giấy project, but the development never got off the ground despite earlier planning approvals and a land certificate issued in 2007.

For banks, the auction reflects a broader push to dispose of overdue corporate loans secured by property, either through debt sales or direct asset seizure. Lenders are increasingly using real estate, inventories and receivables as recovery tools, but slow project execution and weak borrower cash flow are forcing a more aggressive cleanup.

That pressure is visible across the sector. S&I Ratings estimates listed property developers’ borrowings reached about 360.24 trillion dong by the end of June 2026, up more than 20% from the end of the first quarter, while bad debt at 27 listed banks rose to 2.01% at the end of the second quarter from 1.86% at the end of 2025. In the first half of the year, bad loans jumped 17.5%, nearly twice the 9% pace of credit growth.

For investors, the story is a reminder that Vietnam’s banking sector is still working through property-sector credit risk, even as it lends to developers again. Recoveries from high-value urban land could limit losses at some lenders, but prolonged delays in project launches and uneven asset sales can keep pressure on asset quality, provisioning and earnings.

The next test is whether the Cầu Giấy land sale draws enough bids at the reserve price to set a benchmark for other distressed property assets in Hanoi and Ho Chi Minh City, where banks are also preparing takeovers of collateral tied to stalled residential projects.