Returning to Real Estate with Two Projects in Thu Duc City
Mr. Vinh shared that when he was elected to the Board of Management in February 2025, he identified four key issues facing TDH. At this year’s 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 to TDH’s development over the years, according to Mr. Vinh. Currently, the company is awaiting the outcome of a court ruling related to tax refunds, and more time is needed to resolve this issue conclusively.
Secondly, Mr. Vinh discussed the development of remaining projects from the previous management, specifically focusing on real estate. TDH owns a 2,000m2 land plot on Tang Nhon Phu Street (Thu Duc City) zoned for commercial and service purposes. While the company has made payments to its partners, the official transfer of ownership is pending. This project has been stalled for years due to necessary adjustments in construction density and other factors.
Mr. Vinh announced that TDH will develop the Phuoc Long Town Trade Center on this land, featuring six commercial floors and one basement level. With over 6,000m2 of commercial space, the trade center will offer an ‘All-in-one’ model, integrating shopping, culinary, and entertainment experiences to cater to the dense population in the area. Pending legal completion, construction is expected to commence after the Lunar New Year in 2026.
The decision to develop Phuoc Long Town Trade Center is informed by Mr. Vinh’s expertise in retail project advisory. He noted the absence of large-scale supermarkets or trade centers within a 3.5-5km radius in the area, despite its dense population. Internal surveys indicate rental rates for commercial spaces in nearby trade centers are approximately 35 USD/m2/month. Mr. Vinh anticipates this project will provide a stable long-term revenue stream, setting a precedent for replicating the trade center model on smaller land plots within the company’s ecosystem.
In addition to the trade center, TDH will restart the development of a commercial housing project in Hiep Binh Chanh Ward. Spanning 10ha, this project will comprise ten apartment buildings with over 3,000 apartments, accompanied by educational facilities and a riverside park. Catering to the mid to high-end market segment, the project is conveniently located on National Highway 13, near Pham Van Dong Street, providing easy access to Tan Son Nhat Airport. The surrounding infrastructure is also undergoing upgrades, including the Metro Line 3B, Ring Road 2, and the expansion of National Highway 13.
The Hiep Binh Chanh project was entrusted to TDH by Ho Chi Minh City, building upon the Tran Van Giao project. When TDH took over the project in 2012-2013, it was deemed less profitable, leading to a partnership with profit-sharing arrangements. However, Mr. Vinh re-evaluated the project’s viability and negotiated with partners to continue its development. Legally, the project has received approval for zonal plan adjustments, and compensation and clearance have been completed for approximately 67% of the area. TDH’s immediate task is to facilitate clearance for the remaining portion.
The Hiep Binh Chanh project will be TDH’s primary focus over the next 2-3 years, aiming to revive the company after a challenging period. According to Mr. Vinh, “Projects of this scale within Ho Chi Minh City are now almost non-existent.”
“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 by Mr. Vinh was the development of a new business sector. Considering the company’s current situation, he emphasized that the chosen business sector must be long-term and related to real estate. Therefore, TDH’s management has decided to distribute household-related products, including appliances and fruits. This allows TDH to supply its own real estate projects and collaborate with external partners in the industry and beyond.
TDH has already become a distributor of Bosch kitchen appliances and hoods from Germany. Panasonic has also agreed to a distribution partnership. Within the next 1-2 weeks, TDH expects to finalize collaboration agreements with Toshiba and an American brand. In addition to manufacturers, TDH is partnering with Dien May Cho Lon and Nguyen Kim for product distribution.
According to Mr. Vinh, the distribution segment aims to generate consistent cash flow for the company’s daily operations rather than substantial profits. However, he noted that revenues in this segment would be modest until the end of the year, estimated at over VND 100 billion, due to initial marketing expenses. Nonetheless, a target of VND 600-700 billion in revenue is achievable for the following year.
TDH’s Chairman also shared plans to venture into the imported fruit business, leveraging the available land and cold storage facilities at Thu Duc Agricultural Products Wholesale Market. Negotiations are underway with partners from the US, Australia, and New Zealand. Imports are expected to commence within the next month. While acknowledging the long-term potential of this new business segment, Mr. Vinh refrained from providing specific growth projections.
Regarding the final issue of addressing lingering problems, Mr. Vinh requested the shareholders’ understanding as he has only been in office for four months and is still working on 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 pursuing debt recovery and provision reversal measures.
For 2025, TDH aims to achieve consolidated revenue of over VND 235 billion (a 2.7-fold increase from the previous year) and a net profit of over VND 66 billion. Achieving these targets will help TDH avoid mandatory delisting, given the losses incurred in the previous two years (2023-2024).
According to Ms. Lien, TDH will accomplish the VND 66 billion profit target through the continued development of rental offices in Thu Duc City, partial recovery of compensation from the electronic component case, expansion into new business sectors through the establishment of TDHD, and stringent cost control measures.
TDH’s General Director estimated the company’s revenue for the first six months of 2025 to be VND 57.6 billion, with the household appliances segment contributing 12% despite operating for less than a month.
