CEO of the Corporation Chaired by Tycoon Dang Thanh Tam
According to the report “Income of General Directors and Boards of Directors at Public Companies in Vietnam in 2023” published by FiinGroup and FiinRatings, the average income of general directors of listed companies in Vietnam in 2023 was 2.5 billion VND/person. Real estate, financial services (mainly securities) and insurance were the three industries with the highest average CEO income in the stock market.
The company that paid the highest salary in 2023 was Kinh Bac City Development Holding Corporation (stock code: KBC) chaired by tycoon Dang Thanh Tam. In 2023, Ms. Nguyen Thi Thu Huong, General Director of KBC, was the highest-paid person among listed companies, earning nearly VND 17 billion, equivalent to over VND 1.4 billion/month.
The company’s reviewed consolidated financial statements for the second quarter of 2024 showed that Ms. Huong earned a total income of over VND 6.4 billion, equivalent to over VND 1 billion/month, a decrease of about VND 400 million/month compared to the previous year.
According to the annual report of KBC, Ms. Nguyen Thi Thu Huong, born in 1971, was elected to the Board of Directors on April 27, 2012. She holds a Doctorate in Economics and a Master’s degree in Business Administration, and is fluent in Chinese and English.
Having been with KBC since its inception, Ms. Nguyen Thi Thu Huong is well aware of the company’s strengths and weaknesses, steering the company through crisis periods. She has experience in diplomacy and plays an important role in investment promotion with large corporations as well as controlling business operations in each industrial park.
She has been awarded the Labor Order by the Prime Minister, certificates of merit, and titles by provinces, cities, management agencies, and reputable organizations.
Mr. Dang Thanh Tam – Chairman of the Board and Ms. Nguyen Thi Thu Huong – General Director. Photo: Kinh Bac City Development Holding Corporation
Ms. Huong currently owns 399,304 KBC shares, equivalent to 0.052% of the company’s capital. In addition to her role as CEO and member of the Board of Directors at Kinh Bac, she is also the Chairman of Saigon – Bac Giang Industrial Park Joint Stock Company and Vice Chairman and Vice General Director of Saigon – Hai Phong Industrial Park Joint Stock Company.
How is Kinh Bac Performing?
Established in 2002, KBC has become a leading company in investing and developing industrial park real estate. Currently, KBC’s industrial park land fund is 6,611 ha, accounting for 5.1% of the country’s industrial park land fund.
More than 90% of customers at KBC’s high-tech industrial parks are large foreign enterprises from Japan, Taiwan (China), South Korea, and China, such as Canon, Foxconn, LG, and Ingrasys. The company’s largest projects are currently in the process of completing legal procedures, including Trang Due 3 Industrial Park and Trang Cat Urban Area.
According to the company’s second-quarter 2024 financial report, KBC achieved revenue of VND 892 billion (down 62% compared to the same period). After-tax profit was VND 237 billion (down 74% over the same period).
For the first six months of the year, the company recorded revenue of VND 1,044 billion (down 77% over the same period in 2023 due to the area of industrial park land handed over in the first quarter reaching only 15 ha compared to 128 ha in the first quarter of 2023) and after-tax profit of VND 151 billion (down 92% over the same period).
With these results, Kinh Bac has completed 12% of its 2024 revenue plan (VND 9,000 billion) and nearly 5% of its 2024 after-tax profit plan (VND 4,000 billion).
On August 28, 2024, KBC issued VND 1,000 billion bonds (1,000 bonds with a par value of VND 1 billion/bond). The bonds have a term of 2 years, an interest rate of 10.5%/year, and interest payable every 6 months. The proceeds from the bond issuance are expected to be used to restructure the company’s debts to Saigon – Bac Giang Industrial Park Joint Stock Company and Hung Yen Investment and Development Group Joint Stock Company.
As of June 30, 2024, the company had short-term financial borrowings of over VND 405 billion and long-term financial borrowings of VND 4,495 billion. The ratio of total debt to equity was 0.24 times.
According to the evaluation of KB Vietnam Securities Company (KBSV), in 2024, KBC is expected to hand over 51 ha of industrial park land for lease due to the low rate of land handover since the beginning of the year and the delay in the legal progress of the Trang Due 3 project.
“Due to difficulties in land use fee payment at Phuc Ninh Urban Area and delays in legal procedures for Trang Cat Urban Area, we expect that from now until the end of 2025, KBC’s urban land transfer revenue will only come from two projects: Trang Due Urban Area (remaining area of 9.5 ha) and Nenh Town Social Housing Area (remaining area of 8.4 ha),” KBSV stated.
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