Phu My Hung sells 49% stake in developer of northern Vietnam project to Japan’s Nomura

Taiwan-backed developer Phu My Hung has sold a 49% stake in its subsidiary that owns a major urban project in northern Vietnam to Japan’s Nomura Real Estate, marking a significant partnership between the two companies.

Under an agreement announced last week, Phu My Hung and Nomura Real Estate Vietnam will jointly develop Hong Hac City, a 197.8-hectare mixed-use project in Bac Ninh province valued at $1.1 billion. Bac Ninh is a neighbor of Hanoi and home to a Samsung factory.

The project is owned by Vietinbank Trade-Union Investment JSC, in which Phu My Hung previously held a 99% stake. Updated business registration filings in August show that Nomura Real Estate Asia now holds a 49% interest.

Hong Hac City marks Phu My Hung’s first large-scale expansion beyond Ho Chi Minh City, where it developed one of Vietnam’s most successful urban areas - Phu My Hung City. The company is also finalizing legal procedures for another major township in the northern province of Phu Tho.

Founded in 1993, Phu My Hung is a joint venture between Tan Thuan Industrial Promotion Co. (IPC), which owns 30%, and Taiwan’s Phu My Hung Asia Holdings (formerly CT&D Group). Its flagship 409-hectare Phu My Hung City in southern HCMC is home to around 30,000 residents, half of whom are foreigners.

Nomura Real Estate Vietnam, a subsidiary of Nomura Real Estate Holdings, has been expanding its presence in Vietnam through partnerships with leading developers such as Vingroup (HoSE: VIC) and Ecopark.

It co-developed The Peak condominium complex with Phu My Hung and holds notable office assets in HCMC, including Zen Plaza and a 24% stake in Sun Wah Tower on Nguyen Hue street.

In 2024, Phu My Hung posted nearly VND2.09 trillion ($79.3 million) in pre-tax profit, down 5% from a year earlier, marking a second consecutive annual decline.

In the first half of this year, it reported pre-tax profit of VND1.23 trillion ($46.8 million), down 27.5% year-on-year, according to a filing with the Hanoi Stock Exchange.

As of June 30, its owner’s equity stood at VND10.47 trillion ($397.4 million), down 17% from year-on-year, largely due to a 12% decline in retained earnings to VND9.2 trillion ($349.3 million). Total liabilities rose by over VND1 trillion ($38 million) to VND23.41 trillion ($888.6 million).