Of the sum, Vinashin’s debts amount to VND5 trillion (USD238 million), accounting for 3.2% of BIDV’s total outstanding loans. The figure excludes VND1.5 trillion (USD71.4 million) transferred to Vietnam Shipping Lines (Vinalines) which received some of Vinashin’s outstanding projects.
Ha said that during the Government-backed restructuring process, Vinashin debt had largely been transferred to a number of state-owned corporations and groups. Vinashin however still owes nearly 40 credit organisations, however it is thought that the group should be able to repay its outstanding debts.
“We shouldn’t be worried too much about Vinashin’s debts,” the general director claimed.
He also disclosed that Hoang Anh Gia Lai also owes BIDV VND1.3 trillion (USD61.9 million) out of its VND5 trillion total debt. Of the VND1.3 trillion, VND500 billion was poured into Hoang Anh Gia Lai’s real estate projects.
According to the general director, the Hoang Anh Gia Lai Group has a total asset value of around VND20 trillion (USD952.3 million) and the firm affirmed that it would pay the real estate-related debt to BIDV in early 2012.
The BIDV general director remained optimistic about Hoang Anh Gia Lai, saying that the group was turning from property investment to more profitable areas, including rubber plantations, mining and hydropower projects. This was expected to bring more positive business results.
Earlier, credit-rating agency Standard & Poor (S&P) lowered the long-term credit rating of Hoang Anh Gia Lai Group from B to B-. According to S&P, the group’s liquidity in the next 6-12 months would remain weak. It added that rubber and hydropower projects required more capital and faced higher risks and therefore S&P did not expect that they would bring major profits to the group in 2012.
BIDV General Director Tran Bac Ha said that the bank was committed to its IPO that would see a 3-5% stake offered to external shareholders.
This IPO would begin the bank’s equitisation process as approved by the Prime Minister. Under the plan, BIDV will sell a maxim of 35% of its chartered capital by 2015.
The bank does not anticipate high profits in 2012 due to impact of the public debt crisis and its restructuring process. It is however targeting an increase in profits in the following years. BIDV’s total asset value is expected to reach VND900 trillion (USD42.8 billion) in 2015, up from a current VND420 trillion (USD20 billion).