Financial instability in Vietnamese real estate companies

Vietnamese real estate and investment companies are experiencing significant financial instability characterized by profit discrepancies and liquidity shortages.

Following financial audits, companies such as Thuduc House Development JSC (TDH) and LDG Investment JSC (LDG) reported substantial drops in profits or increased losses compared to their initial self-prepared reports. For instance, TDH saw after-tax profits plummet by over 85% following auditor recommendations to adopt more prudent accounting standards.

This instability has evolved into acute liquidity challenges. LDG Investment reported that approximately 1,561 billion VND in term deposits at Military Commercial Joint Stock Bank has been frozen to fulfill corporate obligations, leaving the company with minimal available cash. Additionally, Saigontourist Group has frozen a 60 billion VND deposit at Vietcombank Dak Lak to support Dak Lak Tourism Joint Stock Company (DLD) in an attempt to delay judgment enforcement while the company seeks to raise capital through private share issuances.