On September 29th, HBC announced receiving the appellate judgment from the People’s Court of Gia Lai Province regarding a construction contract dispute with TMS Group Corporation. The court ruled that TMS must pay HBC nearly 154 billion VND. This includes over 100 billion VND in outstanding construction costs, 8 billion VND in contract penalties, and more than 45 billion VND in late payment interest. Additionally, TMS is responsible for court fees and HBC‘s litigation expenses.
This outcome follows a prolonged legal battle related to the TMS Luxury Hotel Quy Nhơn Beach project—the tallest 5-star hotel complex in Quy Nhơn (formerly Bình Định) at the time of construction. The court dismissed all appeals by TMS, upholding the original verdict.
Just over a month earlier, HBC secured a victory against Sunshine Group Corporation at the People’s Court of Hanoi. Sunshine was ordered to pay HBC over 461 billion VND, covering construction costs, contract penalties, and late payment interest for the Nam Thăng Long high-rise residential project (Phase 2) in Hanoi.
Rendering of TMS Luxury Hotel & Residence Quy Nhơn. Source: HBC
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At the 2025 annual general meeting, HBC leadership stated that litigation is a last resort when partners fail to settle payments. Historically, the company has recovered both principal and interest in all lawsuits. Specifically, for the TMS debt, HBC provisioned over 112 billion VND, part of the 1.8 trillion VND in provisions recorded by June 2025.
Chairman Lê Viết Hải expressed confidence in recovering debts, as most developers hold substantial assets. The company aims to reverse approximately 200 billion VND in provisions this year while focusing on risk management and selecting viable residential projects in major cities.
CEO Lê Văn Nam stated that the plan to recover the full 1.8 trillion VND in provisions could be completed within 3–5 years, with hopes of accelerating it to 3–4 years. Additionally, HBC expects to generate around 190 billion VND from asset sales this year to strengthen cash flow and financial health.
The real estate downturn and COVID-19 pandemic are cited as reasons for HBC‘s heavy losses in recent years, including a record loss of over 2.5 trillion VND in 2022 and 1.1 trillion VND in 2023. In the first half of 2025, the company reported a modest net profit of 56 billion VND, though accumulated losses remain above 2.2 trillion VND, achieving only 17% of the annual target.
By the end of Q2, HBC‘s short-term receivables from customers totaled nearly 6.7 trillion VND, with the largest amounts owed by Matec Construction Machinery Corporation (nearly 570 billion VND) and Gamuda Land Corporation (approximately 467 billion VND).
| HBC reports modest profits in H1 2025 while short-term receivables exceed 10 trillion VND |
Hòa Bình Construction undergoes senior leadership changes amid plummeting profits
– 13:57 30/09/2025
The Ever-Changing Landscape of Hòa Bình Construction: A Tale of High-Level Exits and Profit Plunge
In a flurry of executive changes over the past few months, Hoa Binh Construction Group has witnessed a significant reshuffle among its key leadership positions, including Vice Presidents and the Chief Financial Officer. This development comes amidst a challenging business landscape, as reflected in the group’s financial performance during the first half of the year.
Mrs. Đặng Huỳnh Ức My Seeks to Divest Entire Stake in TTC Land
Mrs. Dang Huynh Uc My has registered to sell her entire holding of 110,419 SCR shares from September 18 to October 17, citing portfolio restructuring as the reason.
