Sacombank to Seize 507 Land Titles from LDG Group Over Loan Defaults

Overview

Sacombank has announced it will seize 507 land-use rights and property titles from LDG Group (HOSE: LDG) due to violations of loan repayment obligations. The assets are part of the Viva City project in Dong Nai province. LDG’s Q1 2026 financial report shows cash reserves nearly depleted at VND 4.97 billion, with total overdue debts exceeding VND 850 billion.

Key Facts

• Sacombank will seize 507 land-use rights and property titles from LDG Group, related to the Viva City project in Giang Dien commune, Trang Bom district, Dong Nai province.
• The seizure period is scheduled from June 5 to June 25, 2026.
• LDG’s cash and cash equivalents fell to VND 4.97 billion as of March 31, 2026, from over VND 1,600 billion at the start of the year.
• The cash decline is primarily due to a VND 1,560 billion time deposit at MB Bank being frozen to fulfill the company’s obligations.
• Total overdue loans and interest reached VND 850 billion as of March 31, 2026.
• The largest overdue amount is VND 431 billion owed to Sacombank (principal and interest).
• Other overdue debts include VND 211 billion to VPBank and VND 207 billion from bond LDGH2123002.

What Happened

Sacombank issued a public notice stating it will seize 507 certificates of land-use rights and property ownership from LDG Group due to the company’s failure to meet debt repayment obligations under signed credit and mortgage contracts. The assets are located in the Viva City project within the Giang Dien Residential and Service Area (Zone A) in Dong Nai province. The certificates were issued by the Dong Nai Department of Natural Resources and Environment, with land use rights valid until December 1, 2066.

LDG’s Q1 2026 financial statements reveal severe liquidity strain. Cash reserves plummeted to just VND 4.97 billion from over VND 1,600 billion at the beginning of the year, mainly because a VND 1,560 billion short-term deposit at Military Commercial Joint Stock Bank (MB) was frozen to enforce the company’s obligations. The company has reclassified this deposit as “other short-term assets.” LDG attributes its failure to repay loans to financial difficulties in prior years and states it is arranging assets or funds to settle the debts.

Market Context

LDG shares closed at VND 2,830 on May 29, 2026, down 2.75% on volume of 1.4 million shares. The stock has been under pressure as the company’s financial troubles mount. LDG is listed on HOSE and operates in the real estate sector, primarily in Dong Nai province. The broader Vietnamese real estate market has faced headwinds from tightened credit and regulatory scrutiny, but LDG’s situation is particularly acute given the scale of asset seizure and near-zero cash position.

Strategic Significance

The seizure of 507 land titles by a major bank like Sacombank represents a significant enforcement action that underscores LDG’s inability to service its debts. For long-term investors, this event highlights the risks associated with highly leveraged real estate developers in Vietnam, especially those with concentrated project exposure and weak liquidity management. The company’s reliance on short-term deposits and bond financing has backfired, leading to a cascade of defaults. The outcome of this seizure could set a precedent for how banks handle non-performing loans in the real estate sector.

What to Watch

• Completion of the asset seizure by Sacombank between June 5-25, 2026, and any legal challenges from LDG.
• LDG’s ability to negotiate restructuring or repayment plans with Sacombank, VPBank, and bondholders.
• Further developments regarding the frozen VND 1,560 billion deposit at MB Bank.
• Q2 2026 earnings report from LDG, expected in August 2026, for updated cash flow and debt status.
• Any regulatory actions or trading halts by HOSE if LDG fails to meet disclosure requirements.