Vietnam's Van Thinh Phat-tied firm incurs $14 mln loss in H1 as legal woes persist

Bong Sen Corp, the hotel and property arm of troubled Van Thinh Phat Group, posted a net loss of nearly VND356 billion ($14 million) in the first half of 2025, its filing to the Hanoi Stock Exchange (HNX) showed.

The loss widened the firm’s accumulated shortfall to almost VND3.1 trillion ($117 million) as of June 30. Equity fell to VND4.54 trillion ($172 million), while total liabilities climbed 9% to VND9.08 trillion ($344 million).

Auditor A&C declined to issue an opinion on Bong Sen’s financial statements, citing insufficient evidence, raising concerns over transparency.

The company has defaulted on interest payments for its sole outstanding bond, BSENCH2126003, valued at VND4.8 trillion ($182 million) with a 15.75% coupon. The bond matures in October 2026. Bong Sen said frozen bank accounts linked to the ongoing criminal probe into Van Thinh Phat prevented it from meeting obligations.

Despite deepening losses, Bong Sen holds prime assets in downtown Ho Chi Minh City, including the Palace Saigon Hotel on Nguyen Hue Boulevard and multiple properties on Dong Khoi and Hai Ba Trung streets, as well as a 93.6% stake in the Daewoo Hotel Hanoi. Local courts have ordered these assets liquidated under the Van Thinh Phat trial to repay victims.

Founded as part of state-owned Saigontourist and privatized in 2005, Bong Sen later expanded under new ownership. At a March 2024 trial hearing, arrested chairwoman Truong My Lan confirmed her family controls Bong Sen and offered to sell its Daewoo stake to raise restitution funds.