On July 5, NLD reporters spoke with Mr. Tong Tuan Long, Director of the Hanoi Lottery Construction One-Member Co., Ltd. (referred to as Hanoi Lottery), regarding the company being placed under special financial supervision by the provincial People’s Committee.
Hanoi Lottery Construction One-Member Co., Ltd.
Mr. Long attributed the situation to accumulated losses since 2012. Although the losses decreased during his tenure, they did not improve significantly. In 2023, high payouts to lottery winners resulted in a loss of VND 600 million, causing the total accumulated loss by the end of 2023 to exceed 50% of the owner’s investment capital.
“The proliferation of illegal lottery ticket sales outlets has overwhelmed our company, drastically reducing our revenue. Meanwhile, authorities have been unable to eradicate this issue, posing challenges for our company. We immediately terminate contracts with any agents found to be in violation,” said Mr. Long.
Mr. Long expressed the company’s desire for support from local authorities and sectors, hoping to expand its agent network in communes, wards, districts, and towns.
“Some communes and districts do not allow our company to establish agent systems in their areas, hindering our ability to increase revenue. We also urge law enforcement agencies to take action against illegal lottery operations to maintain order and enable our agents to function properly,” he added.
According to Mr. Long, Hanoi Lottery currently employs 22 staff members, down from 37 in 2017. Therefore, “there is no issue of an inflated workforce leading to losses.”
“Before 2019, our daily revenue reached VND 120 million, generating profits that helped offset accumulated losses. However, since the COVID-19 pandemic, our performance has declined significantly, with daily revenue dropping to around VND 70 million, insufficient to cover expenses and payouts to winners,” Mr. Long elaborated.
Previously, as reported by NLD, on July 2, the Hanoi Provincial People’s Committee issued a decision to place Hanoi Lottery under special financial supervision due to indications of financial insecurity. The company’s total accumulated loss by the end of 2023 exceeded 50% of the owner’s investment capital. The supervision is set to last until the end of 2025.
The document assigns the Department of Finance to coordinate with relevant departments, sectors, and units to fully implement the content, plan, and process of special financial supervision for Hanoi Lottery in accordance with regulations.
Within 30 working days from the issuance of this decision, Hanoi Lottery is required to develop a financial recovery plan. This plan should include an analysis of the causes of business losses, proposals for organizational and personnel improvements, agent management, and investment strategies to maximize the company’s assets and increase revenue from business activities in compliance with the law. Cost-saving measures should also be implemented to restore financial stability.
Once finalized, the plan will be submitted to the Department of Finance and relevant departments for review, providing a basis for the People’s Committee’s decisions.
First budget airline of Vietnam faces bitter defeat as rescue attempt fails
With over 30 years of development, Pacific Airlines – Vietnam’s first low-cost airline – has faced multiple restructuring and transformation challenges, often teetering on the brink of bankruptcy with no aircraft in sight.
Over 2 Million Shares of Da Nang Plastic JSC (DPC) to Be Delisted
2,237,280 shares of DPC will be delisted from May 14th due to DPC’s accumulated loss exceeding its contributed capital as of December 31st, 2023.
