Big business, huge debt
Over the past decade, many real estate businesses have grown strongly, with large scale leading the market such as Vinhomes, Novaland, Hung Thinh Land, Becamex, Phat Dat, Nha Khang Dien, DIC Corp, Van Phu - Invest...
However, there are businesses that are very secretive despite their large scale, such as Saigon Investment and Development Corporation (SDIC).
According to a recent report by the Hanoi Stock Exchange (HNX), SDIC has total assets of nearly VND100,000 billion. But this is also a company with a rare large debt in Vietnam. Its financial health is poor.
Investors know little about this business or who the real owner behind it is.
The financial report for the first 6 months of 2023 shows that by the end of the second quarter of 2023, SDIC had negative equity of nearly VND 1,557 billion. This enterprise has total liabilities of up to VND 97,000 billion (nearly USD 4 billion). Outstanding bonds are more than VND 6,500 billion.
In terms of assets, by the end of the second quarter of 2023, SDIC had more than VND 95,000 billion, ranking 3rd among real estate enterprises in Vietnam, only behind Vinhomes of billionaire Pham Nhat Vuong (VND 396,000 billion, as of mid-2023) and Novaland of Mr. Bui Thanh Nhon (VND 257,000 billion).
SDIC's total assets are larger than other real estate enterprises such as Hung Thinh Land (76,000 billion VND), Becamex, Vincom Retail, BIM Group, Nam Long, Phat Dat Real Estate, Khang Dien House, DIC Corp, Van Phu - Invest...
Real estate tycoon is secretive and constantly losing money.
According to the report, SDIC is a non-public joint stock company and its main field of operation according to the new license is real estate business, land use rights owned, used or leased. The company is headquartered in Thu Duc City, Ho Chi Minh City. The legal representative and Deputy General Director is Mr. Nguyen Hong Phong.
Despite its huge asset size, up to nearly 4 billion USD, SDIC has very poor business results. In the first 6 months of 2023, this enterprise lost nearly 5,402 billion VND, equivalent to a loss of more than 30 billion VND/day.
In 2022, SDIC lost more than VND 3,096 billion. In 2021, this enterprise lost nearly VND 154 billion.
According to the 2022 audited financial report of a securities company, by the end of 2022, SDIC's bonds accounted for nearly half of the securities company's unlisted bond portfolio.
Specifically, SDIC borrowed more than VND3,167 billion through the issuance of bonds to this securities company. In the first half of 2022, the securities company has not recorded this bond in the semi-annual review report.
Saigon Investment and Development Corporation was established in 1999 and is known as the investor of the Saigon Binh An project (commercial name The Global City). While the project developer is another unit.
The Global City is an urban area located in the center of An Phu Ward, Thu Duc City (formerly District 2), Ho Chi Minh City. The project is also known as Saigon Binh An Urban Area (originally licensed in 2001) with a scale of more than 117 hectares with full range of types from apartments, townhouses, villas, 5-star hotels, shopping centers, international hospitals, international schools and other high-class services.
The banks supporting the loan are Techcombank and Vietinbank. This is a project with a large location and scale in Ho Chi Minh City today.
The Saigon Binh An urban area was once introduced as Saigon Binh An - Him Lam City. However, by early 2020, according to Thanh Tra newspaper, another large real estate group had replaced the Him Lam group. Mr. Bui Duc Khoa sat in the chair of Chairman of the Board of Directors. This is a businessman in the Van Thinh Phat ecosystem.
By mid-2021, Ms. Mai Thi Kim Oanh was selected to replace Mr. Khoa as Chairwoman of the Board of Directors and legal representative of SDIC.
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