Vietnam: Real estate firms hold large amounts of cash amid cash shortage complaints

Many businesses are complaining about the shortage of cash, but real estate firms are keeping  cash in their coffers.

Hoang Huy Investment Financial Services JSC (TCH) Chairman Do Huu Ha has approved a plan to pay cash dividends for the 2022 fiscal year with 12 percent at maximum, or VND1,200 per share. 

With 668 million shares, TCH would pay over VND800 billion for dividends. Ha and his wife would get VND350 billion. The information has caused controversy amid  cash shortages, weak liquidity and interest rate increases.

Its financial report showed that by September 2022, TCH had over VND7.8 trillion and cash equivalents. TCH previously operated in the field of automobile assembly and imports, and recently jumped into the real estate market.

Lack of cash and corporate bond scandals have caused hardships for many real estate firms, especially as credit growth has nearly hit the ceiling of 14 percent. 

However, some real estate companies have huge amounts of cash collected from previous sale campaigns. For example, Vingroup (VIC) of billionaire Pham Nhat Vuong has VND28.7 trillion. As of September, Vingroup had VND26.5 trillion and cash equivalents, up from VND18.4 trillion in 2021. Vinhomes (VHM) had VND15.914 trillion, up from from VND4.626 trillion in 2021.

Other real estate groups hold big sums of cash include Novaland (VND22.2 trillion), Sonadezi (VND4.26 trillion), NamLong (VND4.178 trillion), KhangDien (VND2.755 trillion), and DIC Corp (VND2.06 trillion).

However, Bao Viet Group (BVH) ranks first with VND100 trillion, including VND97.6 trillion of deposits at banks and VND2.256 trillion in cash and cash equivalents by September/2022.

Hoa Phat Group of billionaire Tran Dinh Long had VND38.911 trillion in cash, including VND27.03 trillion of bank deposits and VND11.881 trillion in cash and equivalents.

GAS ranks third with VND36 trillion, while ACV has VND33.265 trillion. Binh Son Oil Refinery (BSR), FPT, Sabeco, Vinamilk, and Petrolimex have VND26.5 trillion, VND24.1 trillion, VND23.5 trillion, VND22.4 trillion and VND18 trillion, respectively.

Manh Ha