Sacombank violates rules in granting loans to 16 clients: inspectors

By Hoa Khoa, Huong Dung
Tue, July 18, 2023 | 10:10 am GMT+7

Vietnamese private lender Sacombank commited violations in granting loans worth VND15.22 trillion ($642.38 million) to 16 customers as of August 31, 2018, government inspectors say.

The Government Inspectorate has concluded that Sacombank violated regulations in the appraisal of loan conditions. It granted loans for projects of dubious feasibility that lagged behind schedule, increasing interest expenses and affecting the effectiveness of business investment plans. The customers’ loan use plans were not feasible and carried potential risks.

A Sacombank transaction office. Photo courtesy of the bank.

A Sacombank transaction office. Photo courtesy of the bank.

The 16 customers, split into three groups, were legal entities belonging to major groups and corporations. The first group comprised two members of the Dong Tam Group – Dong Tam JSC and Soai Rap Production Trading Company Limited – that had total outstanding loans worth VND1.04 trillion ($43.99 million) as of August 31, 2018.

The second group comprised 10 debtors related to the Him Lam group: Him Lam Thu Do JSC; Hong Bang Investment JSC; Bao Loc Investment and Construction JSC; Nam Thang Investment, Trading and Service JSC; Cong Phuc Construction JSC; Bao Tin Infrastructure JSC; Viet Phu My Investment and Construction JSC; Viet Ha JSC; Hiep An JSC; and Long Bien Investment Corp.

Nine of these businesses (excluding Long Bien Investment Corp.) reported outstanding loans VND9.26 trillion ($391.8 million) or 48.52% of Sacombank's equity as of August 31, 2018.

These enterprises invested the borrowed capital in the same project - Saigon Binh An Urban Area.

They did not directly implement the project, but borrowed money to transfer to a third party through signing in-principle contracts on the transfer of the project’s subdivisions.

Sacombank appraised the financial capacity of the borrowers but not of the project developers. This created potential risks for the bank. Meanwhile, the project faced land-related legal issues and increased interest expenses, affecting the lender’s credit quality and business results, the inspectors said.

The third group of debtors with total outstanding loans of VND4.31 trillion ($182.35 million) were: Office 85 Real Estate Co., Ltd (VND1 trillion); Saigon Signature Real Estate Investment and Development Corp (VND2.27 trillion); Vina Alliance Co., Ltd (VND491 billion); and Tri Duc Real Estate Co., Ltd (VND 546 billion). These firms were closely related to HCMC-based property developer Van Thinh Phat Group.

Truong My Lan, chairwoman of Van Thinh Phat, was arrested last October for alleged fraud in the issuance and trading of corporate bonds. The 66-year-old has been accused of illegally issuing bonds to raise trillions of Vietnamese dong (tens of millions of dollars) from investors during the 2018-2019 period. So far, 32 people have been prosecuted for involvement in the Van Thinh Phat scam.

Notably, among the 16 customers, Saigon Signature alone had outstanding loans of VND2.34 trillion ($98.77 million) as of October 10, 2021.

Established in 1991, Sacombank is one of the first joint stock commercial banks in Ho Chi Minh City. It targets pre-tax profit of VND9.5 trillion ($405 million) in 2023, up 50% year-on-year.

Listed on the Ho Chi Minh Stock Exchange (HoSE) as STB, it plans to have a total asset value of VND657.8 trillion ($28.04 billion) and mobilized capital of VND574.6 trillion ($24.49 billion) in 2023, both up 11% year-on-year.

STB closed Monday’s trading session at VND28,000 ($1.18) per share.

Comments (0)
  • Read More
Central Vietnam hub Danang eyes country's 'first urban complex on the sea'

Central Vietnam hub Danang eyes country's 'first urban complex on the sea'

The central city of Danang is studying an urban complex project on Da Nang Bay, with five floating islands - home to an international service, commercial and financial center complex.

Real Estate - Mon, April 28, 2025 | 1:49 pm GMT+7

Private equity firm Creador acquires 13% of Vietnam’s Long Chau pharmacy chain

Private equity firm Creador acquires 13% of Vietnam’s Long Chau pharmacy chain

Creador Sdn. Bhd., a private equity firm headquartered in Malaysia, has acquired a 13% stake in FPT Long Chau Investment JSC, one of Vietnam’s largest pharmacy chains and a subsidiary of retail major FPT Retail.

Companies - Mon, April 28, 2025 | 12:00 pm GMT+7

Major Vietnamese contractor Hoa Binh to raise $133 mln for bank, supplier payments

Major Vietnamese contractor Hoa Binh to raise $133 mln for bank, supplier payments

Hoa Binh Construction Group, one of Vietnam's top contractors, plans a private placement for up to 347 million shares, with an estimated total value of VND3.47 trillion ($133.4 million).

Companies - Mon, April 28, 2025 | 11:51 am GMT+7

Chocolate Alluvia celebrates Vietnam's Reunification Day with 4 HCMC stores to watch the parade

Chocolate Alluvia celebrates Vietnam's Reunification Day with 4 HCMC stores to watch the parade

Xuan Ron Cho Gao Cocoa Co., Ltd., the maker of Alluvia Chocolate from Tien Giang province, is joining the celebration of Vietnam’s Reunification Day - April 30, with four stores favorably positioned around Nguyen Hue and Le Loi walking streets in District 1, Ho Chi Minh City.

Travel - Mon, April 28, 2025 | 8:57 am GMT+7

Two Vietnamese banks to list on stock exchanges in 2025

Two Vietnamese banks to list on stock exchanges in 2025

Vietnamese private lenders VietABank and KienlongBank are set to move their shares from the unlisted public companies market UPCoM to the Ho Chi Minh City or Hanoi stock exchanges in 2025.

Banking - Mon, April 28, 2025 | 8:24 am GMT+7

AI to reshape Malaysia’s economic landscape: expert

AI to reshape Malaysia’s economic landscape: expert

Artificial intelligence (AI) is set to significantly reshape Malaysia’s economic landscape, presenting not only challenges but also groundbreaking opportunities for growth, job creation, and innovation, according to an expert.

Southeast Asia - Sun, April 27, 2025 | 5:35 pm GMT+7

Vietnam's retail giant Mobile World to keep growing even if market stagnates: chairman

Vietnam's retail giant Mobile World to keep growing even if market stagnates: chairman

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, will continue to grow even if the market stagnates or retreats, said chairman Nguyen Duc Tai.

Companies - Sun, April 27, 2025 | 5:24 pm GMT+7

Japanese PM Ishiba arrives in Hanoi, beginning three-day visit

Japanese PM Ishiba arrives in Hanoi, beginning three-day visit

Japanese Prime Minister Ishiba Shigeru and his spouse, together with a high-level Japanese delegation, arrived in Vietnam on Sunday for a three-day official visit from April 27 to 29.

Southeast Asia - Sun, April 27, 2025 | 3:58 pm GMT+7

Thailand plans to inject $15 bln into economy

Thailand plans to inject $15 bln into economy

Thailand's Ministry of Finance aims to inject over THB500 billion ($15 billion) into the economy to boost the country's GDP growth by over 1.8%, focusing on stimulating consumption, investment, and providing soft loans.

Southeast Asia - Sun, April 27, 2025 | 1:54 pm GMT+7

New southern Vietnam plant to bring 'sustainable, long-term benefits' to Nam Kim Steel: chairman

New southern Vietnam plant to bring 'sustainable, long-term benefits' to Nam Kim Steel: chairman

Vietnamese steel major Nam Kim's 1 million-ton Phu My plant in the southern province of Ba Ria-Vung Tau is expected to create sustainable and long-term benefits for the company, said CEO Vo Hoang Vu.

Companies - Sun, April 27, 2025 | 1:42 pm GMT+7

Techcombank eyes market cap of $20 bln by end-2025: chairman

Techcombank eyes market cap of $20 bln by end-2025: chairman

Techcombank, one of Vietnam’s major private lenders, aims to expand its market capitalization to $20 billion by the end of 2025, said chairman Ho Hung Anh.

Banking - Sun, April 27, 2025 | 10:40 am GMT+7

Vietnam’s private lender Sacombank to trim payroll, acquire securities broker

Vietnam’s private lender Sacombank to trim payroll, acquire securities broker

Sacombank, a mid-sized private lender in Vietnam, plans to downsize its headcount in 2025-2026 as part of its push toward digital transactions.

Banking - Sun, April 27, 2025 | 10:18 am GMT+7

Vietnam property giant Nam Long eyes 35% profit hike for 2025 on strong housing demand

Vietnam property giant Nam Long eyes 35% profit hike for 2025 on strong housing demand

Nam Long Investment Corporation, a major real estate developer in southern Vietnam, aims to achieve a net profit of VND701 billion ($27 million) in 2025, up 35% year-on-year, driven by strong local housing demand.

Companies - Sun, April 27, 2025 | 8:17 am GMT+7

SK may adjust ownership at Vietnam-based pharmacy major Imexpharm

SK may adjust ownership at Vietnam-based pharmacy major Imexpharm

South Korean chaebol SK Group may adjust its stake at Vietnam-based pharmaceutical company Imexpharm as part of a comprehensive portfolio review across the group, including all of SK’s global assets.

Companies - Sat, April 26, 2025 | 7:00 pm GMT+7

Vietnam's PVOIL owns 423 petrol stations with EV chargers following partnership with VinFast

Vietnam's PVOIL owns 423 petrol stations with EV chargers following partnership with VinFast

PVOIL, a subsidiary of state-owned giant Petrovietnam, had 423 petrol stations with electric vehicle (EV) chargers nationwide as of March 2025, through its partnership with EV maker VinFast.

Companies - Sat, April 26, 2025 | 2:53 pm GMT+7

Indonesia expects 5% economic growth despite IMF forecast revision

Indonesia expects 5% economic growth despite IMF forecast revision

Indonesian Finance Minister Sri Mulyani Indrawati has expressed confidence that the country’s economy will grow by up to 5% in 2025, despite the International Monetary Fund (IMF) having revised down the national growth forecast to 4.7%.

Southeast Asia - Sat, April 26, 2025 | 10:58 am GMT+7