Novaland’s revenue down 25% in 2022 amid market woes

By Vuong Anh
Tue, April 18, 2023 | 3:07 pm GMT+7

Vietnamese leading real estate developer Novaland earned revenue of VND11.15 trillion ($474.5 million) in 2022, a year-on-year reduction of 25%, according to its audited report.

The Ho Chi Minh City-based major’s after-tax profit fell to VND2.18 trillion ($92.76 million), down 36.85% year-on-year, and equal to about one-third of its 2022 target.

The Vietnamese real estate market has encountered many obstacles since last year’s second quarter. Since the fourth quarter, Novaland has made an overall shakeup, including its operations and organization models, to deal with market woes. The firm has also offered solutions to financial restructuring and negotiated debt restructuring options to ensure the interests of clients, investors, and other stakeholders.

Novaland is focusing on key projects while delivering its housing products to customers in phases. It has already adjusted construction schedules for new projects and is working with officials in localities home to these projects to rapidly complete the necessary legal processes.

NovaWorld Phan Thiet in Binh Thuan province on Vietnam’s south-central coast is one of Novaland’s biggest projects. Photo courtesy of the company.

NovaWorld Phan Thiet in Binh Thuan province on Vietnam’s south-central coast is one of Novaland’s biggest projects. Photo courtesy of the company.

In mid-February this year, Novaland asked the government for a supportive mechanism to help the ailing real estate sector deal with market woes, including a credit crunch and long-lasting legal procedures.

Later Novaland struck deals with bondholders to prolong payment terms as the Government’s Decree 08, which took effect on March 5 and allows issuers to extend their bond maturities by up to two years and pay principal and interest with assets other than cash.

The company, listed on the Ho Chi Minh Stock Exchange as NVL, has also sent a document to its shareholders to ask for their opinion on its plans to issue more than 1.9 billion shares to existing shareholders and offer more than 975 million shares via private placements to expand its charter capital by nearly VND30,000 billion ($1.27 billion).

Comments (0)
  • Read More
Vietnam to be key link in global LNG chain on rising demand: experts

Vietnam to be key link in global LNG chain on rising demand: experts

Vietnam is emerging as a potential LNG importer and expected to become a key link in the global LNG chain, says Nguyen Duc Tung from the Vietnam Institute of Strategy and Policy for Industry and Trade.

Energy - Thu, December 19, 2024 | 8:16 am GMT+7

Latvian man sentenced in Vietnam for operating loan shark ring with 1,380% interest rate

Latvian man sentenced in Vietnam for operating loan shark ring with 1,380% interest rate

Aigars Plivěs, a Latvian national, on Monday was sentenced to two years and nine months in prison for operating three companies that offered loans with high interest rates of 401-1,379.7% per year, earning illicit gains of more than VND4.15 trillion ($163 million).

Society - Wed, December 18, 2024 | 10:37 pm GMT+7

April Tea Shop to close down amid F&B sector woes

April Tea Shop to close down amid F&B sector woes

The Tiem tra thang 4 (April Tea Shop), a popular check-in and beverage destination for young people in Ho Chi Minh City, has announced it will shut down on December 25, ending a five-year journey.

Companies - Wed, December 18, 2024 | 9:56 pm GMT+7

New tourism trends seen in Thailand

New tourism trends seen in Thailand

Thailand is gearing up to attract more luxury and high-spending travellers in a bid to stimulate post-pandemic expenditure.

Southeast Asia - Wed, December 18, 2024 | 9:37 pm GMT+7

Thailand to allow more foreign workers in business

Thailand to allow more foreign workers in business

The Thai cabinet has approved in principle increasing the number of foreign workers at businesses to deal with labour shortage, according to Thai government spokesman Jirayu Huangsab.

Southeast Asia - Wed, December 18, 2024 | 9:25 pm GMT+7

Indonesia to build first nuclear power plant

Indonesia to build first nuclear power plant

Indonesia is planning to build its first nuclear power plant on Kelasa island in Bangka Belitung province.

Southeast Asia - Wed, December 18, 2024 | 9:18 pm GMT+7

Thailand announces research and innovation direction for 2025

Thailand announces research and innovation direction for 2025

The recent “Research X Innovation 2025” conference examined global trends and announced Thailand’s research and innovation direction for 2025.

Southeast Asia - Wed, December 18, 2024 | 8:49 pm GMT+7

Malaysia eyes to become ASEAN’s next-generation vehicle hub

Malaysia eyes to become ASEAN’s next-generation vehicle hub

The Malaysian Investment Development Authority (MIDA) has partnered with DRB-Hicom Bhd and Zhejiang Geely Holding Group Co. Ltd. to develop the Automotive Hi-Tech Valley (AHTV) in Tanjung Malim, Perak, with a goal of turning the country into ASEAN’s hub for next-generation vehicles (NxGV) and energy-efficient vehicles.

Southeast Asia - Wed, December 18, 2024 | 8:46 pm GMT+7

Thai IP developer Amata eyes clean energy cooperation with northern Vietnam province

Thai IP developer Amata eyes clean energy cooperation with northern Vietnam province

Amata Group of Thailand on Wednesday recommended the northern province of Quang Ninh foster cooperation in clean energy development in the time to come.

Investing - Wed, December 18, 2024 | 4:54 pm GMT+7

Czech's Sev.en Global Investments to make Europe's largest energy investment in Vietnam

Czech's Sev.en Global Investments to make Europe's largest energy investment in Vietnam

Czech-based Sev.en Global Investments, a multi-sector business, will expand its footprint to Asia, with Vietnam as a key market, the firm announced Wednesday.

Energy - Wed, December 18, 2024 | 3:43 pm GMT+7

Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec

Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec

The government should prioritize planning for designated growing areas and support product promotion to advance the development of products derived from medicinal herbs, said Pham Thi Xuan Huong, general director of OPC Pharmaceutical JSC.

Companies - Wed, December 18, 2024 | 2:15 pm GMT+7

Petrovietnam seeks WB support in offshore wind energy

Petrovietnam seeks WB support in offshore wind energy

State-owned Petrovietnam has called on the World Bank to provide support, including capital, to help with green energy projects, especially offshore wind power.

Energy - Wed, December 18, 2024 | 1:36 pm GMT+7

Masan High-Tech Materials exits its downstream business H.C. Starck

Masan High-Tech Materials exits its downstream business H.C. Starck

Vietnam's Masan High-Tech Materials on Wednesday announced the successful closing of the sale of 100% of H.C. Starck Holding (Germany) GmbH to Mitsubishi Materials Corporation Group.

Companies - Wed, December 18, 2024 | 1:24 pm GMT+7

New stock trading system KRX must come on stream in 2025: regulator

New stock trading system KRX must come on stream in 2025: regulator

The State Securities Commission (SSC) of Vietnam has demanded stock exchanges and related entities to launch the new stock trading system KRX in 2025.

Finance - Wed, December 18, 2024 | 11:40 am GMT+7

Hong Kong-invested battery maker GPPD raises Vietnam investment to $35 mln

Hong Kong-invested battery maker GPPD raises Vietnam investment to $35 mln

Singapore-incorporated GPPD Pte. Ltd., a subsidiary of Hong Kong-based Gold Peak Technology Group Limited, has increased its investment in Vietnam’s southern province of Binh Phuoc to $34.6 million.

Industries - Wed, December 18, 2024 | 11:17 am GMT+7

Vietnam interest rate unlikely to fall further: experts

Vietnam interest rate unlikely to fall further: experts

Interest rates in Vietnam are unlikely to decrease further and may even rise slightly in the near future, according to Pham The Anh, chief economist at the Vietnam Economic and Strategy Research Center (VESS).

Economy - Wed, December 18, 2024 | 10:04 am GMT+7