HDBank seizes 26 HQC land plots over VND 900B debt

Overview

HDBank has announced the seizure of 26 land plots and related assets of Hoang Quan Real Estate (HQC) to recover nearly VND 900 billion in outstanding debt. The seizure, effective from September 25, underscores mounting financial distress for the HOSE-listed real estate firm. HQC’s shares closed at VND 2,140 on September 7, reflecting ongoing market concerns.

Key Facts

• HDBank issued a decision on September 7 to seize collateral from Hoang Quan Real Estate (HQC) to recover debt.
• HQC’s outstanding debt to HDBank stood at approximately VND 895 billion as of the end of Q2 2026.
• The seized assets include 26 land plots in Ho Chi Minh City, totaling over 3,660 square meters.
• Four plots are part of the SaiGonRes project in District 8, covering 1,000 square meters.
• Fourteen plots are in the Phu Loi residential area, District 8, mostly 120 square meters each.
• Eight plots are in Phu Huu ward, District 9, each 126 square meters.
• The collateral also includes rights and interests from the Thạnh Mỹ Lợi project (District 2, now Cát Lái), excluding 35 apartments and 4 villas already sold.
• HDBank plans to begin the seizure on September 25 until the debt is fully settled.

What Happened

HDBank, officially the Ho Chi Minh City Development Joint Stock Commercial Bank, announced on September 7 that it would seize and process collateral from Hoang Quan Real Estate (HQC) to recover unpaid debts. The collateral relates to credit contracts extended to HQC since early 2024. According to HQC’s semi-annual financial report, the company owed HDBank approximately VND 895 billion as of the end of Q2 2026.

The seized assets comprise 26 land plots in Ho Chi Minh City, including four plots in the SaiGonRes project in District 8, 14 plots in the Phu Loi residential area (also District 8), and eight plots in Phu Huu ward, District 9. Additionally, the collateral includes all assets, property rights, and future benefits from the Thạnh Mỹ Lợi project (now in Cát Lái ward), excluding 35 apartments and 4 villas already sold or transferred. HDBank stated it would begin the seizure on September 25 and continue until HQC fully settles the debt.

Market Context

HQC, listed on HOSE, has been under pressure as its financial performance lags. In the first half of 2026, HQC reported revenue of over VND 70 billion and pre-tax profit of nearly VND 16 billion, achieving only 13% of its full-year profit target of VND 120 billion. The company’s shares closed at VND 2,140 on September 7, reflecting weak investor sentiment. HDBank (HOSE: HDB) closed at VND 27,350 the same day, showing relative stability despite the enforcement action.

Strategic Significance

The seizure highlights the deteriorating credit quality of HQC, a company once prominent in the social housing segment. For investors, this event signals heightened default risk and potential asset write-downs. HQC’s repeated failure to meet business plans, attributed to overly ambitious targets and cash flow dependency on ongoing projects, raises questions about its long-term viability. The enforcement by HDBank may also pressure HQC’s other creditors and partners, potentially leading to further legal actions or restructuring.

What to Watch

• HQC’s response and any proposed debt restructuring plan.
• Progress of the asset seizure and potential sale of the 26 land plots.
• HQC’s Q3 2026 financial results, due by October, to assess cash flow and debt levels.
• Any regulatory or legal challenges to the seizure by HQC.
• HDBank’s recovery rate from the collateral and its impact on HDB’s asset quality metrics.