Leading builder Hoa Binh Construction to enter U.S. market with 5 projects

Hoa Binh Construction Group, listed on the Ho Chi Minh Stock Exchange as HBC, has signed a deal with Keystone DCS to jointly implement five projects in the U.S. states of California and Oregon.

Under the memorandum of understanding, the two sides will also cooperate in other construction projects in the U.S., not limited to residential developments but also industrial facilities.

California-based Keystone DCS (Development, Construction & Services), under Keystone Group, provides core products and services in real estate, including residential, commercial, and remodeling.

Hoa Binh Construction Group is a leading construction contractor in Vietnam. The firm reported a net loss of over VND1.14 trillion ($48.34 million) in 2022, the first loss in its history, due to bad results in the fourth quarter.

Its net revenue last year reached VND14.122 trillion ($598.83 million), up 24% and fulfilling 80% of its target, according to the company's consolidated financial statement.

In Q4, Hoa Binh recorded net revenue of VND3,218 billion ($136.46 million), down 16% year-on-year. It suffered a gross loss of VND426 billion ($18.06 million) in the quarter, while posting a gross profit of over VND265.5 billion ($11.26 million) in the same period of 2021.

A power struggle is taking place among HBC’s board members related to the position of chairman. In January, the Ho Chi Minh City Department of Civil Judgment Enforcement issued a decision forcing HBC to cease enforcing three resolutions that caused an internal conflict among its board members.

HBC shares dropped 7% to their floor price at VND8,380 ($0.36) on Monday.