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Finance method turns down Vinaxuki loan plea

The Ministry of Finance has incited down Xuan Kien Automobile JSC (Vinaxuki) Chairman Bui Ngoc Huyen’s offer to be given some-more bank loans to resume his firm’s Made-in-Vietnam automobile dream.

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Bui Ngoc Huyen and his car

Huyen sent a offer to a government, seeking for some-more loans from a Bank for Investment and Development of Vietnam (BIDV) so that he could re-purchase Vinaxuki’s bad debts sole to a Vietnam Asset Management Company (VAMC).


The Government Office compulsory a Ministry of Finance to cruise Huyen’s appeal.

Huyen set adult Vinaxuki with a dream to lift a localisation rate to furnish cars of next 9 seats to 50%. However, due to a impact of a tellurian mercantile predicament during a 2010-2012 period, a association had to compensate high-interest rates for loans in a context of a indolent internal automobile market. In 2011, banks urged Vinaxuki to sell their factories to repay their loans.

Meanwhile, some banks unexpected stopped providing a association loans notwithstanding their oath before for a fear of a Made-in-Vietnam automobile project’s intensity risks.

The banks sole Vinaxuki’s bad debts to VAMC, withdrawal a organization on a verge of bankruptcy. There are now usually a handful of employees during Me Linh-based factory, many of whom work as confidence guards.

Huyen has called for assistance from many banks and credit organisations; however, a conditions has not improved.

He continues to maintain his dream of resuming a automobile plan that he believed to be successful after 6 months.

However, in a recently-issued document, a Ministry of Finance pronounced that a government’s regulations do not concede a association to get loans from BIDV to buy behind the bad debts from an organisation.


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