Returning to Real Estate with Two Projects in Thu Duc City
Mr. Vinh shared that when he joined the Board of Management in February 2025, he identified four key issues facing TDH. At this AGM, he reflected on the progress made over the past four months and provided specific orientations for the future.
Firstly, taxes have been one of the biggest obstacles causing TDH’s stagnation for many years, according to Mr. Vinh. Currently, after the first-instance judgment in the tax refund case, the company still needs more time to resolve this issue conclusively.
Secondly, developing the remaining projects from the previous board of management, specifically real estate projects. Mr. Vinh mentioned that the company owns a 2,000m2 land plot on Tang Nhon Phu Street (Thu Duc City), zoned for commercial and service purposes. TDH has paid the partner but has not yet officially transferred the land. The project has been stalled for years due to adjustments in building density and other issues.
Regarding this land plot, Mr. Vinh introduced that TDH will develop the Phuoc Long Town Trade Center project, consisting of six commercial floors and one basement level, offering over 6,000m² of commercial space. The project will follow an “All-in-one” model, integrating shopping, culinary, and entertainment activities to serve the large population in the area. After completing the legal procedures, the project is expected to commence construction after the Lunar New Year in 2026.
Explaining the choice of developing the Phuoc Long Town project, Mr. Vinh shared that, as an advisor on retail projects, he noticed that the area lacks large shopping malls or supermarkets within a 3.5-5km radius, only hosting small-scale retailers like Bach Hoa Xanh.
According to internal surveys, rental rates in nearby shopping malls are approximately 35 USD/m²/month. With this rate, Mr. Vinh estimated that the project would provide a stable long-term revenue stream, setting the foundation for replicating the small-scale trade center model in other land plots owned by the company.
In addition to the trade center project, TDH will restart the commercial housing project in Hiep Binh Chanh Ward, spanning 10ha, comprising ten apartment buildings with a total of over 3,000 apartments. The project will also feature accompanying utilities such as schools and a riverside park. The targeted market segment is the mid-to-high-end range. The project is conveniently located on National Highway 13, near Pham Van Dong Street, providing easy access to Tan Son Nhat Airport. The area is undergoing infrastructure upgrades with projects like Metro Line 3B, Ring Road 2, and the expansion of National Highway 13.
The Hiep Binh Chanh project was assigned to TDH by Ho Chi Minh City, based on the Tran Van Giao project. When TDH took over the project (2012-2013), the company assessed it as less efficient and thus collaborated with a partner to share profits. However, Mr. Vinh re-evaluated the project’s feasibility and negotiated with the partner to continue its development. In terms of legal procedures, the project has been approved for zonal adjustment, and compensation and clearance have reached about 67%. TDH’s next task is to complete the clearance of the remaining area.
The Hiep Binh Chanh project will be TDH’s focus for the next 2-3 years, aiming to revive the company after a challenging period. “Projects of this scale within Ho Chi Minh City are now almost non-existent,” Mr. Vinh remarked.
“Restarting these two key projects in Thu Duc not only holds financial significance but also marks the return of the ThuDuc House brand to the real estate market,” added Mr. Vinh.
Preparing to Expand into Imported Fruit Distribution
The third issue addressed was the development of a new business sector. Given the company’s current situation, Mr. Vinh stated that the chosen business field must be long-term and related to real estate. Therefore, the TDH management team decided to distribute products related to families. Consequently, TDH can supply products to its real estate projects and collaborate with partners in the real estate industry and external markets.
Currently, TDH has become a distributor of Bosch kitchen appliances and hoods from Germany. Panasonic has also agreed to have TDH as a distributor. It is expected that within 1-2 weeks, TDH will sign a cooperation contract with Toshiba and an American brand. In addition to manufacturers, TDH also collaborates with Dien May Cho Lon and Nguyen Kim for product distribution.
Mr. Vinh clarified that the distribution sector’s goal is not to generate substantial profits but to create a stable cash flow to maintain the company’s daily operations. However, he noted that from now until the end of the year, the revenue from this sector might not be significant, estimated at over VND 100 billion, as the company is new to this field and needs to invest in marketing activities. Nevertheless, a target of VND 600-700 billion in revenue is achievable for the following year.
The Chairman of TDH also shared that the company plans to venture into the imported fruit business, utilizing the available land and cold storage facilities at the Thu Duc Agricultural Products Wholesale Market. TDH is currently negotiating with partners from the US, Australia, and New Zealand. It is expected that imports will commence in about a month. “This is also a new and long-term business direction, but I cannot yet determine its scale,” Mr. Vinh commented on the upcoming fruit import business.
Regarding the final issue of addressing old problems, Mr. Vinh asked for the shareholders’ understanding as he has only been in office for four months and needs more time to devise optimal solutions.
First-Half Revenue Estimated at Nearly VND 58 Billion
On the sidelines of the AGM, Ms. Tran Thi Lien, Member of the Board of Directors and General Director, shared that TDH is in the process of recovering compensation for damages from the electronic component case to address the accumulated loss of over VND 1,000 billion. As of May 31, 2025, TDH has cumulatively recovered VND 52.4 billion from this case. Additionally, the company is implementing solutions to recover receivables and reverse provisions.
For 2025, TDH aims for a consolidated total revenue of over VND 235 billion (2.7 times higher than the previous year) and a net profit of over VND 66 billion. If achieved, TDH will avoid mandatory delisting due to consecutive losses in the previous two years (2023-2024).
According to Ms. Lien, TDH will accomplish the VND 66 billion profit target by continuing to develop rental offices in Thu Duc City, recovering part of the compensation for damages from the defendants in the electronic component case, expanding business sectors through the establishment of Thuduc House Distribution Joint Stock Company (TDHD), and controlling expenses.
The General Director of TDH estimated that the company’s revenue for the first six months of 2025 reached VND 57.6 billion, with the household appliances segment contributing 12% despite operating for less than a month.
