Sacombank Initiates Major Asset Divestment Program, Offering Industrial Land, Mixed-Use Properties, and Resort Valued Over VND 1.3 Trillion

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has announced the sale of a significant portfolio of secured real estate assets, signaling an intensified effort to resolve its non-performing loans (NPLs) and further strengthen its balance sheet. The current round of offerings includes a prime industrial land plot, two substantial mixed-use properties in Ho Chi Minh City, and a previously announced resort in Khanh Hoa province, with the combined value of these assets exceeding VND 1.36 trillion (approximately USD 53 million). This strategic divestment underscores Sacombank’s commitment to its long-term financial restructuring plan, initiated after its merger with Southern Bank in 2015.

The most prominent asset currently on offer is a 50,000 square meter (approximately 12.35 acres) land parcel located within the Nam Tan Uyen Extended Industrial Park. While the original notice mentioned "Binh Ca Ward, Ho Chi Minh City," Nam Tan Uyen Industrial Park is predominantly situated in Binh Duong Province, a key industrial hub bordering Ho Chi Minh City. This strategic location offers excellent connectivity and infrastructure, making it highly attractive for industrial development. Sacombank has listed this particular property at VND 750 billion (approximately USD 29.3 million).

Strategic Industrial Land in Binh Duong

The 50,000m² industrial plot, identified as parcel number 509, map number 17, within the Nam Tan Uyen Extended Industrial Park, boasts significant advantages for potential investors. According to Sacombank’s description, the property features three road frontages within the industrial park’s internal road network. Its robust infrastructure offers convenient connections to major provincial roads such as DT747A, DT747B, and DT746B. This accessibility is crucial for logistics and supply chain operations, positioning the asset as ideal for the development of factories, warehouses, and logistics centers. The bank emphasizes its potential to attract both domestic and foreign direct investment (FDI) due to its strategic location in one of Vietnam’s most dynamic industrial zones. The land use rights for this parcel are valid until May 6, 2059, providing a substantial remaining term for long-term investment. Furthermore, the property is situated adjacent to a complex comprising two existing factory blocks and an office building, suggesting a ready-to-develop or immediately operational environment.

Binh Duong province has consistently ranked among Vietnam’s top provinces for FDI attraction, thanks to its well-developed industrial parks, favorable investment policies, and proximity to Ho Chi Minh City’s port and airport facilities. The demand for industrial land in Vietnam has seen a significant surge in recent years, driven by global supply chain diversification strategies and the relocation of manufacturing facilities to Southeast Asia. This trend makes the Nam Tan Uyen asset particularly appealing to manufacturers, logistics providers, and industrial developers looking to capitalize on Vietnam’s growing manufacturing prowess. Average land rental prices in key industrial parks in southern Vietnam have steadily increased, reflecting the strong investor appetite.

Urban Mixed-Use Properties in Ho Chi Minh City

Beyond industrial land, Sacombank is also divesting two significant mixed-use properties within Ho Chi Minh City, catering to a different segment of the real estate market.

The first HCMC asset is a consolidated block of nine land plots, totaling 10,650 square meters (approximately 2.63 acres), located in An Phu Ward, Ho Chi Minh City. This property is described as being situated in a mixed residential and commercial zone, interspersed with existing factories. Its immediate surroundings include townhouses, supermarkets, office buildings, worker housing, and various factory units. This diverse environment suggests suitability for a range of uses, from further residential development to commercial complexes or light industrial operations that benefit from urban proximity. The asking price for this consolidated parcel is VND 180 billion (approximately USD 7 million). The urban location within Ho Chi Minh City, a bustling economic hub, guarantees high demand for land with such versatile potential.

The second HCMC property involves the land use rights and attached assets (including housing and office facilities) for a 3,803 square meter (approximately 0.94 acres) plot. This asset is located at parcel number 13 in An Phu Dong Ward, Ho Chi Minh City. Similar to the An Phu property, this parcel is situated within a residential area interspersed with commercial establishments and factories. Its mixed-use zoning and existing structures make it adaptable for immediate use or redevelopment. Sacombank has priced this asset at VND 130 billion (approximately USD 5.1 million). Both HCMC properties represent opportunities for urban developers or businesses seeking strategic locations within Vietnam’s largest city, where land values continue to appreciate due to rapid urbanization and economic growth.

Coastal Resort in Doc Let, Khanh Hoa

In addition to these newly announced offerings, Sacombank had previously put a resort property located on Doc Let beach in Khanh Hoa province up for sale. This significant tourism asset has an initial asking price of VND 300 billion (approximately USD 11.7 million). The resort spans a total area of 15,493 square meters (approximately 3.83 acres). Within this, 7,668.7m² is designated as commercial and service land, with a usage term extending until December 2050. The remaining 7,824.4m² is categorized as perennial crop land, with usage terms varying from October 2050 to January 2052.

Doc Let beach is a well-known tourist destination in Khanh Hoa, a province famous for its pristine beaches and vibrant tourism industry, centered around Nha Trang. The sale of this resort property aligns with the ongoing recovery of Vietnam’s tourism sector following the global pandemic. Khanh Hoa, in particular, has seen a resurgence in both domestic and international visitors, driving demand for hospitality assets. A fully operational or redevelopable resort in such a prime location offers substantial potential for investors looking to tap into Vietnam’s booming tourism market.

Background Context: Sacombank’s NPL Resolution Journey

These large-scale asset sales are a critical component of Sacombank’s broader strategy to resolve its accumulated non-performing loans (NPLs), a challenge that intensified following its merger with Southern Bank in 2015. The merger significantly expanded Sacombank’s asset base but also inherited a substantial portfolio of distressed assets and NPLs from Southern Bank. Recognizing the necessity of a comprehensive cleanup, Sacombank embarked on an ambitious NPL resolution plan, approved by the State Bank of Vietnam (SBV).

Over the past few years, Sacombank has made remarkable progress in reducing its NPLs and improving its asset quality. The bank has consistently reported significant recoveries from bad debt sales and asset liquidations. For instance, by the end of 2023, Sacombank had successfully recovered a substantial amount of NPLs, demonstrating its effective resolution mechanisms. This ongoing divestment program is a continuation of that strategy, aiming to further cleanse its balance sheet, increase liquidity, and enhance capital adequacy. The bank’s leadership has repeatedly affirmed its commitment to fully resolving its legacy NPLs and becoming one of Vietnam’s leading commercial banks with a pristine balance sheet.

Broader Implications and Market Impact

Sacombank’s proactive approach to asset divestment holds several implications for both the bank and the broader Vietnamese real estate and financial markets. For Sacombank, successful sales of these high-value assets will directly contribute to its NPL resolution targets, improve profitability by reducing provisioning requirements, and free up capital for core lending activities. This strengthens the bank’s financial health, enhances investor confidence, and supports its growth trajectory.

For the real estate market, these offerings introduce significant supply, particularly in the industrial and mixed-use urban segments. The industrial land in Binh Duong is likely to attract considerable interest from both domestic and international manufacturers and logistics firms, further fueling FDI into Vietnam. The Ho Chi Minh City properties, given their urban locations, present opportunities for developers to meet the city’s ever-growing demand for residential, commercial, and light industrial spaces. The Doc Let resort signals confidence in Vietnam’s tourism sector and could attract hospitality groups looking for strategic acquisitions.

These sales also reflect a broader trend within the Vietnamese banking sector, where NPL resolution remains a key priority for many financial institutions. The State Bank of Vietnam has consistently pushed for banks to clean up their balance sheets, and the successful execution of such large-scale asset sales by Sacombank serves as a positive indicator of the banking system’s overall health and its ability to manage distressed assets. The transparency and formal bidding processes associated with these sales also contribute to the maturation and institutionalization of Vietnam’s real estate and financial markets.

Looking Ahead

Sacombank’s latest announcement of asset sales is a testament to its sustained efforts in financial restructuring. The offering of diverse, high-value properties across key economic regions of Vietnam—industrial heartlands, bustling urban centers, and prime tourist destinations—reflects a comprehensive strategy to maximize recovery from secured assets. As Vietnam continues its economic expansion and attracts increasing foreign investment, these assets are likely to find strong buyer interest, further solidifying Sacombank’s financial position and contributing to the overall stability and growth of the Vietnamese economy. The bank’s continued success in NPL resolution will serve as a model for other financial institutions facing similar challenges, highlighting the importance of strategic asset management and a long-term commitment to financial health.