12-year journey of FLC 'empire'

By Khanh An, Huong Dung
Wed, February 15, 2023 | 11:16 pm GMT+7

FLC of FLC Group JSC, one of the stocks bringing the most emotions to investors, has officially closed its 12-year journey in the Vietnamese stock market.

On February 14, the Ho Chi Minh City Stock Exchange (HoSE) issued a decision to delist nearly 710 million of FLC shares from February 20 for the company’s serious violations of information disclosure obligations.

Responding to this information, FLC begged the regulator to reconsider the decision, saying objective reasons and the force majeure events of the company should be taken into account.

"Shaking" Vietnamese stock market

More than a decade ago, the merger of member companies gave birth to FLC Group JSC, marking the start of the FLC brand under the era of founder Trinh Van Quyet.

Under the leadership of this businessman, FLC expanded its real estate investment by conducting mergers & acquisitions (M&As) and developing a series of projects in Hanoi. It also poured trillions of Vietnamese dong (VND1 trillion = $42.33 million) into building resorts in other localities, becoming one of the leading real estate developers in Vietnam. This was also the reason for the attraction of FLC after listing.

FLC Tropical City Ha Long - one of the impressive projects of FLC in Quang Ninh province. Photo courtesy of the company.

FLC Tropical City Ha Long - one of the impressive projects of FLC in Quang Ninh province. Photo courtesy of the company.

In April 2011, FLC Group was officially approved by the State Securities Commission to become a listed company. Six months later, on October 5, 2011, it listed 10 million shares on the Hanoi Stock Exchange (HNX), marking its first step on the stock market.

In the early days of trading, FLC became a "phenomenon" with a spectacular price hike of 240% after three months. The ticker then plummeted and went flat for a year before making a comeback with the "game" of shifting to another bourse.

In August 2013, FLC officially moved to list 77.2 million shares from the HNX to the HoSE. Less than a year later, this stock was added to many important index baskets, typically VN30, which features 30 largest companies by capitalization. Thanks to the positive information, FLC won investor interest, with its price skyrocketing.

However, later on, FLC could not return to the peak period of its debut, but was only traded below par value. In late 2019, Trinh Van Quyet even promised to shareholders that "We will never let FLC shares be below par value in 2020 and the stock will see its value expand at least five times".

In 2020, when the stock market and businesses were affected by Covid-19, FLC once again formed a new bottom at VND2,000 ($0.09) per share, but it was still one of the most interested names in the stock market with liquidity often in the top.

In 2021, when speculative cash flowed strongly into the market, FLC and other codes in the FLC ecosystem such as ROS of FLC Faros, HAI of HAI Agrochem, AMD of FLC Stone, KLF of CFS Investment and Import Export Trading JSC, and GAB of FLC Mining Investment & Asset Management JSC rebounded strongly.

From the price worth a cup of iced tea, FLC increased 10 times to more than VND22,000 ($0.9) on January 3, 2022, helping many shareholders "come back to shore" after a decade of waiting. This stock then set a record in liquidity, with three sessions witnessing over 100 million shares changing hands.

Following its impressive climbing journey, FLC also showed a shocking slip. Quyet’s illegal sale of nearly 75 million FLC shares was discovered on January 10, 2022, when the ticker turned from the ceiling price to the floor price, starting the series of gloomy days for FLC.

Then, all tickers in FLC Group plunged to their historic bottoms. In particular, after Quyet was arrested for “manipulating the stock market”, FLC Group and its member companies were also found to have committed many serious information disclosure violations.

As a result, the stocks of the FLC family were in turn restricted and suspended from trading, and then delisted after the rescue plans failed. At the time of trading suspension on September 9, 2022, FLC dropped to VND3,570 ($0.15) per share.

When achievements fall

As a long-standing enterprise operating in the real estate sector, FLC built its brand via many large projects like the grand eco-tourism complexes in Thanh Hoa, Quang Ninh, Binh Dinh and Quang Binh provinces. The synchronous and professional implementation of projects provided positive business results for the company.

Since moving to the HoSE, the revenue of this real estate firm continuously grew year by year and set a record of nearly VND16,000 billion ($677.32 million) in 2019. It earned hundreds of billions of Vietnamese dong in profit. 2016 was considered the peak year for FLC as its pre-tax profit reached VND1,319 billion ($55.84 million), equivalent to more than one fifth of its revenue worth VND6,136 billion.

FLC's charter capital also increased sharply from VND100 billion when it was listed on the HNX to VND7,099 billion ($300 million) in 2019. Then, FLC did not raise its charter capital but focused on Bamboo Airways. Launched in 2017, this airline has quickly established its brand and reputation, joining the race with flag carrier Vietnam Airlines and low-cost Vietjet Air.

However, FLC’s aviation and tourism activities were directly affected by the Covid-19 pandemic, leading to a sharp drop in its business performance in 2020-2021. The company’s 2021 revenue declined by 50%, with pre-tax profit plunging to VND163 billion ($6.9 million).

In 2022, difficulties piled up for FLC as the real estate market grew stagnant due to tightened credit and some key leaders were arrested, making it suffer losses. In less than one year, FLC Group saw 22 projects in 10 localities suspended.

Until now, this company has not released its financial statements for 2022. In the first nine months of last year, it suffered a net loss of more than VND1,800 billion ($76.18 million), with total assets of VND36,216 billion ($1.53 billion) and liabilities worth VND28,271 billion ($1.19 billion).

Comments (0)
  • Read More
What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?

What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?

NobleGo – Vietnam’s pioneering AI-powered livestream real estate bidding platform developed by Sunshine Group – has completed its first 20 livestream sessions.

Real Estate - Tue, September 16, 2025 | 4:53 pm GMT+7

Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026

Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.

Industries - Tue, September 16, 2025 | 3:54 pm GMT+7

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex

A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.

Industries - Tue, September 16, 2025 | 2:44 pm GMT+7

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout

Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.

Energy - Tue, September 16, 2025 | 1:44 pm GMT+7

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers

Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.

Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister

Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.

Economy - Tue, September 16, 2025 | 9:36 am GMT+7

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry

The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.

Finance - Tue, September 16, 2025 | 8:00 am GMT+7

E-commerce boom a major driver of Vietnam's packaging paper industry growth

E-commerce boom a major driver of Vietnam's packaging paper industry growth

Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.

Companies - Mon, September 15, 2025 | 10:20 pm GMT+7

Vietnam needs support from UK in developing international financial center: Deputy PM

Vietnam needs support from UK in developing international financial center: Deputy PM

Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).

Finance - Mon, September 15, 2025 | 10:12 pm GMT+7

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Vietnam enforces 8% capital adequacy ratio for banks from Sept 15

Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.

Banking - Mon, September 15, 2025 | 10:04 pm GMT+7

Tool for wood traceability management debuts in Vietnam

Tool for wood traceability management debuts in Vietnam

The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.

Companies - Mon, September 15, 2025 | 10:00 pm GMT+7

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, US Embassy foster aviation-hospitality cooperation

Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.

Companies - Mon, September 15, 2025 | 9:54 pm GMT+7

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1

Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.

Companies - Mon, September 15, 2025 | 8:10 pm GMT+7

Central Vietnam to have new airport Mang Den

Central Vietnam to have new airport Mang Den

Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.

Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital

The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.

Economy - Mon, September 15, 2025 | 2:20 pm GMT+7

Agribank introduces sizable $4.17 bln preferential credit package

Agribank introduces sizable $4.17 bln preferential credit package

Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.

Companies - Mon, September 15, 2025 | 1:32 pm GMT+7