HDBank seizes 26 land plots, project assets from Hoang Quan Real Estate (HQC)

Overview

HDBank has decided to seize collateral assets from Hoang Quan Real Estate (HQC), including 26 land plots and assets from a residential project, to recover debts under credit agreements signed in 2024. The seizure, effective from September 25, 2026, underscores HQC’s financial distress, as its first-half 2026 revenue reached only about 6% of its annual target. The action affects HQC (HOSE) and highlights credit risk for HDBank (HOSE).

Key Facts

• HDBank’s General Director issued a decision on September 7, 2026, to seize and handle collateral from HQC.
• The collateral includes 26 land plots: 18 plots in former District 8 (total area ~2,655 m²) and 8 plots in former District 9 (total area ~1,008 m²).
• The seized assets also include all assets, property rights, and future benefits from a villa and apartment project in Thanh My Loi ward, former District 2 (now Cat Lai ward).
• The project collateral involves 67 apartments, but 35 apartments (max 4,076 m²) and 4 villas (max 671 m²) already sold or transferred are excluded.
• The seizure is expected to begin on September 25, 2026, and continue until HQC fully settles its debts.
• HQC’s Q2 2026 revenue was VND 64.8 billion, with after-tax profit of VND 7.4 billion, up over 50% year-on-year.
• H1 2026 revenue reached only about VND 70 billion, approximately 6% of the annual target.

What Happened

HDBank has formally initiated the seizure of collateral assets from Hoang Quan Real Estate (HQC) to recover outstanding debts. According to a decision dated September 7, 2026, the bank will take possession of 26 land plots located in former District 8 and District 9 of Ho Chi Minh City, along with assets and rights from a residential project in Thanh My Loi ward. The credit agreements were signed in 2024, and HDBank states that prior notices and requests for asset handover were not fulfilled by HQC.

The land plots include 18 plots in former District 8 (total area ~2,655 m²) and 8 plots in former District 9 (total area ~1,008 m²), all designated for long-term urban residential use. Additionally, the seizure covers all assets and future benefits from the villa and apartment project, excluding units already sold or transferred. The process is set to begin on September 25, 2026, and will continue until HQC settles its obligations.

Market Context

HQC shares closed at VND 2,140 on September 7, 2026, reflecting ongoing investor concerns about the company’s financial health. The company’s first-half 2026 revenue of approximately VND 70 billion is only about 6% of its annual target, indicating severe operational underperformance. HDBank, trading at VND 27,350 on the same day, faces potential credit risk from this exposure, though the bank’s proactive collateral seizure suggests an effort to mitigate losses. The Vietnamese real estate sector remains under pressure from high inventory and slow sales, and HQC’s situation exemplifies the challenges faced by smaller developers.

Strategic Significance

For HQC, this seizure represents a critical liquidity and solvency event. The loss of key land plots and project assets could impair its ability to generate future revenue, potentially forcing the company to restructure or sell remaining assets. For HDBank, the action demonstrates a firm approach to non-performing loans, which may reassure investors about asset quality but also highlights the risks in its real estate lending portfolio. The outcome of the asset disposal will be crucial: if HDBank recovers most of the debt, it could set a precedent for other banks dealing with distressed developers; if not, it may signal deeper problems in the sector.

What to Watch

• Progress of the asset seizure and disposal process, including any auctions or sales of the 26 land plots and project assets.
• HQC’s response, including any legal challenges or negotiations to settle the debt before September 25, 2026.
• HQC’s Q3 2026 earnings report to assess whether revenue and cash flow improve or deteriorate further.
• HDBank’s disclosure of the total outstanding debt and recovery rate from the collateral in its upcoming financial statements.
• Any regulatory or policy changes affecting real estate collateral enforcement in Vietnam.