After Chang Meilan, the "richest woman", blew up the financial system with a US$27 billion scam, another "grey rhinoceros" rushed into the heart of Vietnam's economy-Novaland, the second largest real estate company, officially exploded.
The latest report released by the General Inspectorate of Vietnam last Friday confirmed that the company transferred funds to related trading entities through multi-layered shell companies through 1.5 trillion VND (about 4.05 billion yuan) corporate bonds, which were finally used to fill the black hole of Ponzi financing.
The first to disguise this layer of “good days” was “Vietnam’s wealthiest woman” Zhang Merlan. This woman was formerly known as “Vietnam’s edition pearl”, holding a company called Comfort Finance, saying to the outside was consumer finance, real estate investment, also engaged in some seemingly great “technology projects”, attracted a bunch of Vietnamese people to deposit money – – after all, “the wealthiest woman”, everyone felt to follow her money, some old people even put their entire life old money, children’s tuition and school fees in. The result last year this thing exploded: what is the right investment, is basically a game of Ponzi scam for more than a decade! New investors paid interest to old investors, demolished the East Wall, and lied to $270 billion,
This happened, the Vietnamese financial system was directly panicked. The people found that their money could not be taken back, some at the Comfort financial gate pulled the banner, some ran to the bank exchange, fear of the bank's money was not. Even worse, many Vietnamese local banks were involved with Comfort finance, either to give it a loan, or to help it to sell financial products, now Comfort collapsed, the bad accounts of these banks suddenly stacked into a mountain, there are several small banks almost directly collapse, or the central bank of Vietnam urgent investment to stabilize.
If Confort Finance is a “small joke”, the Nova property is a “heavy-weight competitor” – in the Vietnam real estate circle, it is named along with the boss VinGroup, holding a bunch of projects, from Ho Chi Minh City’s high-end apartments to Hanoi’s commercial complex, to the seaside holiday building, everywhere has its signature. Before the price of houses in Vietnam was crazyest, Nova’s house was relying on “robbery”, first paid to be in line with other houses, many foreign investors also followed the money, feeling stable and not losing. Early this year, the Vietnamese government’s General Inspectorate released a report, directing the Novotys trousers clean: the company issued 1.5 trillion Vietnamese debt shield enterprises, in exchange for
What do you mean? That is, Nova has long run out of money, and lives by issuing new debts to repay old debts, which is similar to Zhang Meilan's routine, except that it is a real estate company, and it can make money by "selling off-plan houses". Now that the corporate bond has exploded, the off-plan project has also stopped work, and the people who bought Nova's house were directly dumbfounded-some paid 50% down payment, and some paid back two-year loans. As a result, when they went to the construction site, the tower crane stopped, the workers ran away, and even the foundation was not finished. There is a Nova market in Ho Chi Minh City. Hundreds of owners are blocking the sales office with banners saying "Give me back my hard-earned money". It's useless for the police to come. After all, everyone's life savings have been thrown into it.
This storm, the whole Vietnam real estate industry directly crashed half the sky. To know, Vietnam’s economy in these years, almost a third is driven by real estate — — building houses can drive cement, steel, renovation industry employment, selling houses can drive consumption, even the government’s fiscal income is based on the sale of land. But Vietnam’s real estate enterprises have long distorted the way, almost no one is relying on the sale of houses to repay the day, all rely on debt financing, some real estate enterprises have a debt rate of more than 150%, than China’s pre-bombed real estate enterprises are also exaggerated. Now Nova fell, no one dared to buy the real estate bonds, the bank did not dare to lend the real estate enterprises, as a result of a group of small enterprises
Furthermore, foreign investment has also started to run. Before foreign investment, half of which was in the manufacturing industry, half in the real estate and stock market, now when you look at Vietnam's financial instability, real estate boom, hurry to withdraw funds —— Last year, foreign investment withdrew from Vietnam's stock market and bond markets for $5 billion, Ho Chi Minh City's house prices also started to jump, before hype to high-end apartments for 40,000 yuan per square meter, now hit seven times no one wants, some roofs even directly shut down. The manufacturing industry is also affected, would have wanted to move to Vietnam's factories, looking at this economic situation, and hesitated, after all, the factory to cover factory houses, to hire people, if Vietnam's economy has been unstable, risk too
In fact, these mines were not buried in one or two days, but for more than ten years. As early as 2010, the Vietnamese government has been bent on economic growth. It feels that real estate comes in money quickly and has a strong pulling effect, so it is particularly "tolerant" of real estate companies-not only encouraging them to issue bonds, but also relaxing land approval, and even some local governments cooperate with real estate companies to speculate on land together. The regulatory authorities can't keep up. When real estate companies engage in multi-layer shell companies to transfer funds and issue bonds, they falsify. No one checks these things until the hole is too big to be blocked. And those real estate owners and financial swindlers, such as the management of Zhang Meilan and Nova, have seen this loophole and are bent on making money, regardless of whether the project can be successful or not. Anyway, they fill their pockets first, and as a result, the entire industry and even the entire economy have been dragged into the quagmire.
Before the “good days” of Vietnam, it is said that the bubble is accumulated – – the real estate bubble, foreign investment bubble, looking fun, in fact, is very rooted. now the bubble is broken, only to reveal the mess inside: the economic growth rate from the previous 7% dropped to last year 4.7%, this year can not keep 5% is difficult to say; the unemployment rate of young people, especially the real estate and the construction industry, many workers are not working, only back home; the government wants to save the city, and the interest is cut and the policy of financing housing enterprises, but it does not matter – the people do not dare to buy houses, afraid to buy the bad ends; foreign funds do not dare to enter, afraid of the money to crush in and recover; the hole of housing enterprises is too big
Some people shouted before that "Vietnam will replace China as the factory of the world", but now no one mentions this-even basic economic stability can't be maintained, and even the unfinished buildings in their own country can't be solved. How can we attract enterprises to move their factories? Not to mention that Vietnam's industrial chain is not yet perfect, and many raw materials have to be imported from China. Now that the economy is in chaos, the industrial chain has also been affected, and some factories have even shut down due to lack of materials.
Therefore, Vietnam buried more than a decade of mines, this exploded the “good days.” not to say that the Vietnamese economy completely failed, but that the previous false prosperity backed by the real estate bubble, Ponzi financing, must be over. then South Korea is facing, is to fix a mess: to deal with the bad debt of the bank, to reassure the right buyers, to restore the real estate industry, but also to find a new economic growth point - can no longer rely on real estate, to rely on manufacturing, on technological innovation, but these are not a day or two can handle, at least three five years, more than ten years and eight years, to slow down.
Before that kind of randomly engaged in a real estate project can make money, foreign capital stack inflow, everyone thinks “day will be better” “good days”, I am afraid that will never come back. this is also to the other countries that rely on real estate to drive the economy a wake up: the bubble sooner or later to break, relying on nothing can not withstand the long good days, the economy to stabilize, but must rely on real industry, relying on regulation, otherwise buried in the mine, one day will explode.