The financial stability of a major real estate company in Vietnam, No Va Land, has been questioned by PricewaterhouseCoopers (PwC) due to difficulties in the real estate market in Vietnam. No Va Land is facing significant bond payments this year, and the market has been struggling due to a surplus of high-end property, high debt, stricter rules on bond issuance and refinancing, and the arrest of high-profile business executives.
The financial stability of a major real estate company in Vietnam, No Va Land, has been questioned by PricewaterhouseCoopers (PwC) due to difficulties in the real estate market in Vietnam. No Va Land is facing significant bond payments this year, and the market has been struggling due to a surplus of high-end property, high debt, stricter rules on bond issuance and refinancing, and the arrest of high-profile business executives.
According to data from Refinitiv, No Va Land reported having about 16 trillion dong (equivalent to $683.88 million) in its financial statements released on Tuesday, stating that it had sufficient resources to fulfil its obligations for the next 12 months. However, PwC, while approving the financial statements, raised concerns about the company’s ability to sustain its operations continuously.
The company recorded revenues of 11.15 trillion dong ($474.47 million) and a net profit of 2.181 trillion dong ($92.81 million) for 2022, down 26% and 37% respectively from the previous year. In response to the auditor’s concerns, No Va Land issued a statement to the securities commission stating that it was faced with obstacles but was able to meet its debt obligations, thanks to the government.
Recently, Vietnam eased regulations on bond repayments and credit access for real estate developers. No Va Land, which was among the largest corporate bond issuers in Vietnam’s property industry last year, has announced that it is negotiating with bondholders to reschedule payments or exchange bonds for real estate products that No Va Land owns or develops.
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