On January 31, 2024, the Customs Department of TP. Ho Chi Minh City issued a decision to enforce the administrative decision on tax management by suspending customs procedures for the import and export of goods of Trung Nam Construction Investment Corporation (Trung Nam Group).
The reason for the enforcement is that Trung Nam Group has owed taxes for more than 90 days since the deadline for payment as stipulated. The amount being enforced is 27.5 billion VND.
This decision is valid for a period of 1 year, from January 31, 2024 to January 30, 2025, and will cease to be effective when the outstanding tax amount is fully paid to the State budget.
Trung Nam Group was established in 2004, starting as a construction unit. Until now, the company has developed into a conglomerate with main activities in 5 sectors including energy, infrastructure – construction, real estate, and information technology industry. The group is led by two discreet entrepreneurs: Mr. Nguyen Tam Thinh (1973) – Chairman of the Board of Directors and Mr. Nguyen Tam Tien (1967) – General Director cum legal representative.
Since 2018, Trung Nam Group has been involved in renewable energy projects and currently owns 4 wind power projects, 3 solar power projects, and 3 hydropower projects. Among them, there are several large-scale projects such as Ea Nam Dak Lak Wind Power Plant with a total capacity of 400 MW (investment capital of 16,500 billion VND), Trung Nam Thuan Nam 450MW Solar Power Plant combined with a 500kV substation (investment capital of 12,000 billion VND), Trung Nam 204MW Solar Power Plant (6,000 billion VND), Trung Nam Wind Power Plant with a total capacity of 151.95 MW (4,000 billion VND), Trung Nam – Tra Vinh Solar Power Plant with a capacity of 140 MW (3,500 billion VND), …
To finance these projects, Trung Nam Group and its subsidiaries have issued trillions of VND in bonds. At the end of 2022, the bond debt of Trung Nam Group was 24,285 billion VND, accounting for nearly 36% of total debt (68,110 billion VND). The total assets as of December 31, 2022 reached over 96,000 billion VND.
In terms of business results, in the past year, Trung Nam Group recorded a consolidated after-tax profit of nearly 255 billion VND, down 84% compared to the result of 2021. The return on equity after tax of the company decreased from 5.85% to 0.91%.
Recently, Trung Nam Group has also announced delayed payment of interest on some bonds. Specifically, Trung Nam Group has delayed payment of 106.9 billion VND in interest on TNGCB2124001 bonds and 4.7 billion VND in interest on TNGCH2224005 bonds.
TNGCB2124001 bonds have a total issuance value of 2,000 billion VND and TNGCH2224005 bonds have a total issuance value of 100 billion VND. These two bond lots will mature in 2024.
