Exit ban warning against Phat Dat Real Estate CEO 'inappropriate': company

An exit ban warning issued by the Ho Chi Minh City Tax Department against the CEO of Phat Dat Real Estate Development Corporation is "inappropriate" as the firm had fulfilled its tax obligations on September 24 and received official confirmation on September 26, according to the company.

On October 4, information circulated that the HCMC Tax Department had issued a warning about the possible imposition of a temporary exit ban on Bui Quang Anh Vu, board member and CEO of Phat Dat.

According to the tax department, based on taxpayer data in the tax management system as of September 19, 2025, Phat Dat, listed on the Ho Chi Minh Stock Exchange (HoSE) as PDR, still owed nearly VND9.3 billion ($352,473) in total taxes, penalties, and late payment interest.

On the same day, Phat Dat, a major property developer based in HCMC, released an official statement clarifying that as of September 24, 2025, the company had fully resolved its tax obligations following enforcement measures taken by the HCMC Tax Department.

The fulfilment of these obligations was officially confirmed in Document No. 10807/QĐ-HCM-KĐT issued by the department on September 26, 2025. All relevant documents have been publicly disclosed on Phat Dat’s official website and shared with concerned authorities and organizations.

Therefore, Phat Dat had already fulfilled its tax obligations nearly a week before September 30, 2025 – the date on which the HCMC Tax Department issued notification No. 9029/TB-TP.HCM considering an exit ban on Bui Quang Anh Vu, the company's legal representative.

Phat Dat affirms that this notification is entirely inappropriate, seriously affecting the legal rights and interests of the company, Vu personally, and its shareholders, investors, and partners.

The company also expressed concern that the incident could be exploited to spread misinformation, causing public confusion and negatively impacting over 56,000 current shareholders.

Currently, Vu continues to perform his duties as usual and is preparing to attend international conferences and meetings as scheduled. Phat Dat emphasized its commitment to complying with the law, fulfilling obligations to state authorities, and maintaining transparency in business operations to ensure sustainable development for both the company and the community.

On the stock market, PDR shares had a strong uptrend from around VND15,000 per share in May 2025 to around VND25,000, before adjusting to VND21,600 ($0.82) per share in September, following overall market movements.

Over $4.25 million profit in H1

In H1/2025, Phat Dat recorded net revenue of VND458 billion ($17.47 million), up 2.7 times from the same period last year and after-tax profit of VND115.5 billion ($4.25 million), up 13.2%.

Its cash holdings dropped sharply from VND343.7 billion to just VND25.2 billion ($961,098), and held-to-maturity investments also fell to VND100 billion from VND115 billion ($4.39 million).

Conversely, receivables rose to VND7,570 billion ($288.7 million) from VND6,900 billion, primarily due to the recognition of a VND337 billion long-term loan receivable. Inventory edged up slightly to VND14,100 billion, accounting for 58% of total assets.

On the liabilities side, the share conversion with ACA Vietnam raised Phat Dat’s charter capital from VND8,730 billion to VND9,070 billion ($345.92 million), while share premium increased significantly from VND70 billion to VND410 billion. However, interest-bearing debt rose VND338 billion to VND5,680 billion, driven by bank borrowings for project financing and asset acquisition.

Meanwhile, the company’s short-term customer deposits, often seen as a cash buffer for real estate firms, dropped to VND50.8 billion ($1.94 million) from VND133.5 billion at the start of the year. Most of this decline came from the Bac Ha Thanh urban renovation project, where advance payments fell from VND130 billion to VND25.4 billion.

By mid-year, the company had achieved only 14% and 15.9% of its respective revenue and after-tax profit target respectively, meaning much of the business plan pressure is now shifted to the second half of the year.

For H2, Phat Dat has set ambitious full-year targets of VND3,300 billion ($125.86 million) in revenue and VND728 billion ($27.76 million) in after-tax profit, 4 times and 4.7 times higher than the 2024 results, respectively.

By mid-year, it had achieved just 14% and 15.9% of the year's revenue and profit targets, placing pressure on H2 performance.

At the company’s 2025 AGM in late June, CEO Bui Quang Anh Vu confirmed that H2 results will be driven by revenue and profit recognition from the Bac Ha Thanh (Quy Nhon Iconic) project in former Binh Dinh province (now part of Gia Lai province after a merger), stake divestments, and service income.

Phat Dat noted that the macroeconomic climate in H1 showed improvement, supporting a more favorable real estate environment. In Q1, it sold 125 land plots at Quy Nhon Iconic for VND435 billion ($16.5 million). In Q2, the company sold over 1,000 units at the La Pura project in the former Binh Duong province (now part of Ho Chi Minh City) and plans to launch another 1,000 units in September.

Several other projects are making legal progress and may be monetized soon. The Thuan An 1 project, also in the former Binh Duong province, has secured all necessary permits and is ready for launch, with an 80% stake already sold to a foreign partner, expected to settle payment in September.

According to the leadership, Phat Dat is entering a new growth phase with a more aggressive vision, strategically shifting focus to the centers of major urban areas and developing iconic projects. To implement this strategy, the company is urgently mobilizing financial resources.

Chairman Nguyen Van Dat has demonstrated his determination and commitment by selling 88 million PDR shares from his personal holdings via throughput, expected to raise around VND2,000 billion ($75.8 million), which will be converted into resources to support the company.

In the stock market, PDR closed Friday at VND21,600 ($0.82) per share.