The Bank for Investment and Development of Vietnam (BIDV) has announced the auction of Hanoi VIP International School, a private elementary school in Vietnam's capital, to recover a bad debt of over US$20 million from a local company that had pledged the school as one of the mortgages for a loan.

The debtor is Phu Son Cement Joint Stock Company, based in northern Ninh Binh Province, and its unpaid debt amounted to €19.7 million ($20.3 million) as of November 15, 2024, BIDV said in a recent announcement.

Among the total, €7 million ($7.2 million) is the loan’s principal balance and the remainder accounts for accumulated interest and fees.

One of the loan's collaterals includes the land use rights and land-attached property of the school’s predecessor, Thai Ha Private Elementary School, situated in Hanoi’s Dong Da District.

According to Vietnamnet, Hanoi VIP (Very Intelligent Pupils) International School is part of the Hanoi VIP Education System, which was established in 2006, with Hoang Thi Ngoc Mai serving as the chairwoman of the board of directors.

BIDV also states the starting auction price will be equal to the total value of the unpaid debt at the time of signing an auction contract between the bank and auction bidders.

The time frame for direct submission of auction bidder registration dossiers is five business days from the publication of the auction announcement on BIDV's official website.

Phu Son, founded in 2006 in Ninh Binh’s Nho Quan District, lists Nguyen Huu Loi as its legal representative.

In 2007, the company commenced construction of a cement plant in Nho Quan with an annual production capacity of 11 million metric tons. The project carried a price tag of VND5 trillion ($196.7 million).

However, the work slowed down in 2009 before coming to a firm stop in late 2012.

In 2022, the Ninh Binh administration issued a document directing relevant agencies to carry out procedures to terminate this project.

Data from the national business registration system shows that in August 2023, the Ninh Binh Department of Planning and Investment issued a notice citing violations by Phu Son, leading to the revocation of its enterprise registration certificate.

The notice stated that the company had breached its tax obligations and failed to submit reports required under the Law on Enterprises to demonstrate compliance with relevant regulations.

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