Company related to tycoon Dinh Truong Chinh temporarily suspends employees

Housing Development and Trading Joint Stock Company (HDTC) has just announced that all employees will be temporarily on unpaid leave to wait for work. The time is from November 26 until the company has a new announcement.

The reason given by the company is that the current financial resources are extremely difficult, there is no source of revenue to pay salaries to officers and employees. Therefore, the Board of Directors agreed to arrange a streamlined organization, retaining only key personnel to strengthen the company in the immediate period, as a basis for future development. Previously, in 2022, the average income of the company's officers and employees was 20.45 million VND. In 2021, it was 13.5 million VND, according to HDTC's report. HDTC used to be a state-owned enterprise that was equitized in 2016. Currently, the company is chaired by Mr. Dinh Chi Minh as Chairman of the Board of Directors and General Director. The previous Chairman of the Board of Directors is Mr. Dinh Truong Chinh - who was prosecuted at the end of October, related to violations in the management and use of land plots at 33 Nguyen Du and 34, 36, 42 Chu Manh Trinh, Ben Nghe Ward, District 1 (HCMC), causing particularly serious damage to the State. As of December 31, 2022, Mr. Dinh Truong Chinh owns 26.45% of HDTC's capital. Two other institutional shareholders holding large shares are FR Real Estate Finance Investment Joint Stock Company (34.79% of capital) and Saigon Real Estate Corporation (30% of capital). In addition, Ms. Dinh Chau Ngoc Huong holds 8.67% of capital. After Mr. Chinh was prosecuted, HDTC issued a press release, affirming that the above incident does not affect any long-term development orientation and normal operations of the company.

Perspective of a project of HDTC in Thu Duc City, Ho Chi Minh City (Photo: HDTC).

HDTC has implemented many large projects in Ho Chi Minh City such as Binh Trung Residential Area 10ha (District 2), Binh Tri Dong Residential Area 28ha (Binh Chanh District), An Phu - An Khanh New Urban Area 131ha (District 2), An Suong Residential Area 65ha (District 12)... In addition, HDTC has also implemented many resettlement housing projects such as To Hien Thanh Apartment Complex (District 10), Nguyen Van Luong Apartment Complex (Go Vap District), Binh Dang Apartment Complex (District 8), Binh Phu Apartment Complex (District 6), Lo S Hung Vuong Apartment Complex (District 6), Binh Trung Apartment Complex (District 2), 5-storey apartment complex in An Phu - An Khanh New Urban Area (District 2)... In 2022, HDTC achieved more than 713 billion VND in net revenue, down 24% compared to the previous year and after-tax profit of nearly 97 billion VND, down 48%. HDTC's charter capital at the end of 2022 reached nearly VND 2,242 billion. Total assets were nearly VND 12,493 billion, up 41% over the previous year. Financial debt was VND 1,970 billion, debt/equity ratio was 0.88 times. In 2023, HDTC set a revenue target of VND 1,000 billion and profit of VND 200 billion. The company plans to increase capital to VND 3,026.5 billion through issuing shares to pay dividends.

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