Vietnam's real estate major Novaland seeks to complete restructuring by end-2026
2025 is expected to be a year of recovery for leading property developer Novaland despite significant challenges, and the company anticipates completing its restructuring by end-2026 to enter a new growth cycle in 2027, according to its leadership.

A real estate project developed by Novaland. Photo courtesy of the company.
Challenges remain, pressure still high
Since late 2022, the bond market crisis, triggered by the Saigon Commercial Bank (SCB) scandal combined with a frozen real estate market, has led many businesses, including Novaland (listed on the Ho Chi Minh Stock Exchange as NVL), to face serious cash flow problems.
With tens of trillions of Vietnamese dong (VND1 trillion = $38.76 million) in bond debt, Novaland was not immune to this turmoil. In response, the company launched a comprehensive restructuring strategy, focusing on stabilizing its organizational structure and financial situation, as well as streamlining operations.
In Novaland's 2024 annual report, chairman Bui Thanh Nhon stated that 2025 would be a breakthrough year for the company to reaffirm its position. "We have prepared a well-structured strategy, a highly skilled team, and a robust ecosystem to ensure we are ready for a rebound," he said.
CEO Duong Van Bac elaborated that the company had resolved legal issues for key projects, negotiated with contractors, restructured its finances, and sought new funding sources to resume construction at various sites.
In 2024, Novaland delivered 1,422 units, resolved legal obstacles, and provided land-use rights and property ownership certificates to customers at several projects.
However, the CEO cautioned that 2025 would be even more challenging, with significant pressure from all sides and continued market difficulties. Novaland aims to avoid falling behind, with key targets over the next two years including delivering 22,000 units to customers, collecting over VND100 trillion ($3.86 billion) from sold properties, launching new sales worth more than VND240 trillion, and fulfilling all obligations to customers, bondholders, and partners.
Bac mentioned that the board of directors has proposed two business scenarios for 2025, both of which expect the company to report a loss. Net revenue is projected to be around VND10.45 trillion or VND13.4 trillion ($519.4 million), with after-tax losses of VND12 billion or VND688 billion ($26.67 million).
The company’s representative emphasized that the most significant factor affecting performance is the progress in resolving legal issues for its projects. As such, the two proposed scenarios for 2025 have been developed with caution, based on this progress. These plans also consider potential adverse factors, especially given the ongoing challenges in the real estate market.
In 2024, Novaland recorded a loss of VND4.4 trillion ($170.54 million), primarily due to provisions made for the Lakeview City project in Ho Chi Minh City, as requested by its auditing firm.
Bac noted that the National Assembly's Resolution No. 170/2024/QH15, effective from April 1, would address land-use fee issues at this project. Novaland now has the opportunity to reverse provisions amounting to trillions of VND (VND1 trillion = $38.76 million) this year.
Cancelling plans to issue 1.4 billion shares
A key point at Novaland's 2025 AGM, scheduled for April 24, is the board directors' decision to cancel the planned issuance of shares to existing shareholders, private investors, and employees under the Employee Stock Ownership Plan (ESOP) approved in 2023.
Originally, the company had planned to issue up to 1.17 billion shares through a rights offering for existing shareholders, up to 200 million shares via private placement to a maximum of five professional investors, and shares for the 2023 ESOP program. However, the cancellation was made in light of current market conditions and the need to protect shareholder interests.
Instead, the board will propose a new plan to issue up to 350 million private placement shares to a maximum of 20 professional investors, with a price not lower than VND10,000 ($0.39) per share. The proceeds will be used for a variety of purposes, including settling payables, tax obligations, staff wages, operational costs, working capital, and investments in subsidiaries.
Additionally, the leadership will present a restructuring plan for its $300 million international convertible bond package. The company will also elect additional board members, following the resignation of independent members Nguyen Thi My Hanh and Ng Tech Yow.
In the stock market, NVL closed Friday at VND9,100 ($0.35) per share.
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