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 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 the remaining projects from the previous board, specifically focusing on real estate. TDH owns a 2,000m2 land plot on Tang Nhon Phu Street in Thu Duc City, zoned for commercial and service purposes. While the company has paid the partners for this land, the official transfer of ownership is still pending. TDH plans to develop a commercial center called Phuoc Long Town on this plot, featuring six floors of commercial space and one basement level. The project will offer over 6,000m2 of commercial area, adopting an “All-in-one” model that integrates shopping, dining, and entertainment options. Located in a densely populated area, Phuoc Long Town aims to fill the gap in the market for a large-scale mall or supermarket within a 3.5-5km radius.
According to internal surveys, rental rates for commercial spaces in similar malls in the area stand at approximately 35 USD/m2/month. Mr. Vinh anticipates that this project will provide a stable long-term revenue stream, setting the precedent for replicating the small-scale commercial center model across other land plots owned by the company.
In addition to the commercial center, TDH will restart the development of a 10-hectare commercial housing project in Hiep Binh Chanh Ward. This project will comprise ten apartment buildings, offering over 3,000 apartments, along with 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 originally assigned to TDH by Ho Chi Minh City, building upon the Tran Van Giao project. When TDH took over the project in 2012-2013, they assessed its low profitability and decided to partner with another company, sharing profits. However, Mr. Vinh re-evaluated the project’s potential and negotiated with the partner to continue its development independently. In terms of legal procedures, the project has received approval for a subdivision adjustment, and land clearance compensation has been completed for approximately 67% of the area. TDH’s next 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
Moving on to the third issue, Mr. Vinh discussed the development of a new business sector. Considering the company’s current situation, he emphasized that the chosen business line must be long-term and related to real estate. Therefore, the TDH leadership has decided to distribute products related to the family, including appliances and fruit. TDH can supply these products to their own real estate projects and collaborate with external partners in the real estate sector and beyond.
TDH has already become a distributor of Bosch kitchen appliances and hoods from Germany. They have also secured an agreement with Panasonic, and negotiations are underway with Toshiba and an American brand, expected to be finalized within the next 1-2 weeks. In addition to partnering with manufacturers, TDH is collaborating with Dien May Cho Lon and Nguyen Kim for product distribution.
Mr. Vinh clarified that the distribution segment’s primary goal is not to generate substantial profits but to create a consistent cash flow to sustain the company’s daily operations. However, he noted that the segment’s revenue for the remainder of the year might not be significant, estimated at over VND 100 billion, as the company is still in its initial stages and marketing expenses are high. Nonetheless, a target of VND 600-700 billion in revenue is achievable for the following year.
Furthermore, TDH is planning to venture into the imported fruit business, leveraging their existing land and cold storage facilities at the Thu Duc Agricultural Products Wholesale Market. The company is currently in negotiations with partners from the US, Australia, and New Zealand, aiming to commence imports within the next month. While acknowledging the long-term potential of this new business line, Mr. Vinh refrained from providing specific projections about its future growth.
Lastly, regarding lingering issues from the past, Mr. Vinh requested the shareholders’ understanding as he has only been in his position for four months and is still working on devising 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 measures to recover other receivables and reverse provisions.
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. If successful, TDH will avoid mandatory delisting due to consecutive losses in the previous two years (2023-2024).
According to Ms. Lien, TDH will attain the VND 66 billion profit target through the continued development of rental offices in Thu Duc City, recovering a portion of the compensation from the defendants in the electronic component case, expanding into new business lines through the establishment of Thuduc House Distribution JSC (TDHD), and maintaining cost control.
The General Director estimated that TDH’s revenue for the first six months of 2025 reached VND 57.6 billion, with the newly established household appliances segment contributing 12% to the total revenue structure.
