Vinaconex ITC wants to transfer part of northern Vietnam urban-tourism project

Vinaconex Investment and Tourism Development JSC (Vinaconex ITC) plans to sell part of its Cat Ba Amatina urban-tourism project on Cat Ba archipelago in Cat Hai district, Hai Phong city.

The plan was announced after Vinaconex ITC, a subsidiary of major developer Vinaconex, released its 2023 audited financial statement reporting a loss of more than VND286 billion ($11.57 million), its biggest loss since its inception in 2008.

At the upcoming AGM, the company plans to seek shareholder approval for the transfer of part of the project to another developer. At the same time, it will continue to work with credit institutions and investors to increase capital for the project.

Vinaconex ITC attributed the big loss to a sudden increase in financial costs from VND690 million ($27,900) in 2022 to VND277.1 billion ($11.2 million) in 2023. In addition, its gross profit plunged nearly 80% year-on-year to VND5.61 billion ($226,900).

The corporation has completed procedures for a fire safety certificate and a technical infrastructure construction permit for the Cat Ba Amatina project.

The 172-hectare urban-tourism project has total investment capital of VND10.9 trillion ($440.86 million). Its two phases were scheduled for completion in 2023 and 2025. It is to include 1,300 villas, high-rise buildings, serviced apartments, resorts, hotels, commercial centers, recreational areas, and other facilities.

Vinaconex ITC is registered on the Unlisted Public Companies Market (UPCoM) as VCR, which closed the Friday trading session at VND23,200 ($0.94).