Seaprodex (code: SEA on UPCoM) has recently disclosed information regarding a decision by the Tay Do Customs Branch of Can Tho City’s Customs Department to enforce administrative tax-related decisions through coercive measures. Specifically, the branch has decided to forcibly collect outstanding late payment fees by deducting funds directly from Seaprodex’s account at the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) in Thuan An, Binh Duong Province.
According to the decision, Seaprodex failed to comply with notifications regarding outstanding late payment fees, amounting to VND 853.46 million.
Seaprodex owns the prime real estate location at 2-4-6 Dong Khoi, District 1, Ho Chi Minh City.
This enforcement action is notable as Seaprodex currently holds a substantial cash balance. As of September 30, 2024, the company reported a cash reserve of over VND 455 billion, accounting for 17% of its total assets. This includes VND 394 billion in cash and cash equivalents and over VND 61 billion in short-term bank deposits.
In terms of business performance, Seaprodex recorded a 19% year-on-year decrease in net revenue for the first nine months of this year, amounting to nearly VND 463 billion. Financial income also declined by 59% to nearly VND 18 billion over the same period.
Despite cost-cutting measures, the company still reported a net profit of over VND 143 billion, representing a 19% decrease compared to the first nine months of 2023.
As of the same date, total borrowings stood at VND 82.6 billion, constituting only 3.1% of total capital sources.
Seaprodex, established in 1978, was once a leading enterprise in the seafood industry. Today, it is known for its ownership of prime real estate in Ho Chi Minh City’s District 1.
As of September 30, 2024, the company has recognized long-term construction in progress of VND 692.17 billion for the land use right at 2-4-6 Dong Khoi, District 1, Ho Chi Minh City.
Seaprodex has stated that despite fulfilling all tax and financial obligations for the land transfer and receiving confirmation from the tax authorities, it has not yet been granted the land use certificate to proceed with the planned project.
The Great Seafood Tax Scandal: Seaprodex’s Tax Troubles
The Tay Do Customs Branch has enforced a measure to collect outstanding late payment fees amounting to 853.46 million VND by deducting funds from Seaprodex’s account at the Vietnam Export Import Commercial Joint Stock Bank – Eximbank, Thuân An, Binh Duong province.
The Underperforming Land Development Project: Inefficiency Leads to Consequences
The Government’s Decree 102/2024/ND-CP, effective from August 1st, provides detailed regulations on land revocation for violations of land laws. This decree stipulates that if investors fail to utilize the land within the extended deadline of up to 24 months, the state will revoke the land without compensation for the land itself, any attached assets, or remaining investments.
