The World Trade Organization Plans a 13.2 Trillion VND Township in Hanoi

The G8 new urban area has a total investment of nearly VND 13,259 billion, including a construction cost of over VND 12,599 billion and a compensation and resettlement support cost of over VND 659 billion.

The project is located in Kim Chung, Dong Anh district, on a total land area of approximately 46.6 hectares. Of this, the land area not subject to investor selection through bidding is about 18,810 sq. m, and the land area subject to investor selection through bidding is about 446,812 sq. m. The projected population is around 4,811 people, and the project land has not yet been cleared.

Total Joint Stock Commercial Construction Company, established in 2006, had the State Capital Investment Corporation (SCIC) as one of its founding shareholders, holding 0.06% of the capital (equivalent to approximately VND 3.25 billion) in 2018, with the remaining 99.94% held by 20 other shareholders.

Subsequently, SCIC and several other shareholders divested, and Mr. Vo Nhat Thang acquired a 99.988% stake (equivalent to over VND 5,509 billion), while Ms. Vu Thi Mai Loan and Mr. Vu Duc Toan held 0.001% and 0.11%, respectively. Mr. Thang was also the Chairman of the Board of Directors and legal representative of the Company at that time. In mid-2020, the Company increased its capital to over VND 8,150 billion and did not disclose its list of shareholders. In early 2022, the Company’s legal representative changed to Mr. Le Tuan Dung, the General Director. In March 2022, the Company raised its capital to over VND 12,510 billion, which has been maintained until now. In August 2023, the Company’s legal representative changed to Mr. Huynh Xuan Nhan, the Chairman of the Board.

According to the Company’s website, it was previously known as the Hanoi Materials Factory, established in 1961 under the Department of Supply, Ministry of Transport. In 2005, it was equitized as Total Joint Stock Commercial Construction Company. Today, the Company focuses on real estate, energy, and industrial production.

Mr. Huynh Xuan Nhan – Chairman of WTO

How is WTO performing in its operations?

In late 2023, WTO withdrew its application for the new urban area project in Dan Phuong, Hanoi, after nearly two years of pursuing it. The withdrawal came after central ministries and Hanoi completed their appraisal and agreed in principle to approve the investment policy for the project. According to the project proposal, the new urban area in Dan Phuong would have covered an area of 145 hectares, with a total investment of approximately VND 19,128 billion and a population of about 13,800 people.

Regarding WTO’s financial capacity, the Ministry of Finance, in its opinion issued in June 2022, stated that according to land laws, the owner’s capital contribution to the Dan Phuong new urban area project should not be less than VND 2,869 billion. The investor proposed to mobilize about VND 3,002 billion from internal sources, including cash, accumulated funds, and capital contributions from shareholders.

The Ministry of Finance noted that WTO’s owner’s equity at the end of 2021 was VND 13,008 billion, which is higher than the required contribution to the Dan Phuong new urban area project. However, the company’s net working capital, reflecting its ability to mobilize short-term owner’s equity, was only VND 97.5 billion, significantly lower than the minimum contribution required by regulations.

Additionally, WTO is currently involved in several ongoing urban development projects, such as the Kim Chung – Di Trach new urban area project spanning 140 hectares in Hoai Duc district, Hanoi; an office building project at 737-739 Tran Hung Dao, District 5, Ho Chi Minh City; and the Area 2 Binh Chanh project in Binh Chanh district, Ho Chi Minh City.

According to WTO’s published reports, the company has consistently generated profits over the years. In 2023, the company recorded a post-tax profit of VND 433 billion, with owner’s equity of over VND 15.1 trillion. Its total liabilities stood at nearly VND 35 trillion. The company currently has 13 bond lots outstanding, mostly issued in 2021 and maturing in mid-2028. The total outstanding bond debt is nearly VND 2.3 trillion.

Source: Author’s compilation

Thu Minh