Vietnam banks auction vehicles as auto loan rates surge

Auto loan interest rates in Vietnam are experiencing significant increases as promotional periods expire. Borrowers have reported rates jumping from initial preferential levels of 8.2% per annum to floating rates between 17% and 18% per annum.

While the State Bank of Vietnam reports average lending rates for new loans range from 8.3% to 10.5%, these figures do not fully reflect the costs faced by existing borrowers once introductory periods end. Many customers are facing increased debt pressure due to these rising costs.

In response to rising defaults and debt recovery efforts, banks are increasingly auctioning collateralized assets. The items being liquidated range from common used vehicles worth hundreds of millions of dong to luxury cars, including a blue Rolls-Royce Ghost being auctioned by VietinBank's Ho Chi Minh City Branch 4.