Le Delta multi-sector network a mixed bag for Vietnamese entrepreneur

Hanoi-based Le Delta JSC’s multi-sector network including solid waste technology, construction, real estate and renewable energy has been a mixed bag for Vietnamese businessman Ngo Van Hung.

One of the notable successes of Le Delta JSC has been HTP Technology Group JSC, part of its ecosystem and owner of famous e-wallet Omipay.

As of March 2021, Le Delta chairman Hung held 53% of the charter capital in HTP Technology. Established in 2019, the company provides intermediary payment (collection services anad payment gateways) and trade services (focusing on fast-growing commercial business networks).

HTP Technology earned revenues of VND3.88 billion ($157,120) and a net profit of VND22 million ($890) in 2021. In 2022, revenue skyrocketed 169.4% year-on-year to VND10.45 billion ($423,160) and its net profit jumped 482% to hit VND128 million ($5,180).

At the end of the 2021-2022 financial year, the company’s total assets were valued at VND52.24 billion ($2.11 million), up 3.36% compared to the year’s beginning. Its equity rose slightly (0.05%) to VND50.15 billion ($2.03 million).

Despite the modest figures, the company performed better than e-wallet giants caught up in a money-burning race to retain their market shares, like Momo, ZaloPay and Shopee Pay, which recorded 2022 losses of VND1.15 trillion ($46.57 million), VND1.3 trillion, and VND200 billion, respectively.

During the Covid-19 pandemic and its aftermath, electronic payment became a popular choice among Vietnamese consumers. Vietnam is the fastest growing digital economy in Southeast Asia and experts say electronic payment is likely to develop strongly in the country.

From October 2018 to October 2023, the number of Vietnamese people using e-wallets increased rapidly from 12.3 million to 41.3 million, corresponding to a growth rate of 235%. Currently, about 57% of Vietnam's adult population use e-wallets, a significant rise from 14% at the end of 2018. It is expected that this market will have 50 million active users in 2024, 100 million users in 2026 and 150 million users in 2030.

Two years of losses

Meanwhile, another company in the Le Delta ecosystem, Eapok Coffee Company Limited, with Hung as chairman and legal representative, has reported a loss for two consecutive years.

In 2022, Eapok's net revenue reached VND24.4 billion ($988,050), up 2.5% year-on-year but it suffered a loss of VND11.5 billion ($465,680). In 2021, its loss was higher at VND19.2 billion.

Eapok's total assets at the end of 2022 were valued at VND84.5 billion ($3.42 million), down 10.77% compared to the beginning of the financial statement period, while its equity was VND55.1 billion ($2.23 million), down nearly 17.3%.

Looking good

Yet another company that Hung is chairman of, holding 36.9% of its capital – Vinh Yen Environment and Urban Services Joint Stock Company, reported a gross profit of VND323 billion ($13.8 million) in 2022, up 0.31% year-on-year. Deducting expenses and taxes, it reported a net profit of VND5.3 billion ($214,630), up 23.2%.

As of December 31, 2022, the company's assets were valued at VND295 billion ($11.95 million), down 3.78% compared to the beginning of the year. Its equity was VND99 billion, an increase of nearly 3.9%.

In 2022, Vinh Yen Environment and Urban Services made a long-term investment of VND65.45 billion ($2.65 million) in Vinh Phuc Industrial Investment Group JSC, equivalent to a 15% stake.

Recently, the company was approved as investor of the Phuc Son Industrial Park project in the northern province of Bac Giang. The 123.94 hectare project has a total investment capital of nearly VND1.84 trillion ($74.52 million).