Hoa Binh Construction Group, a leading Vietnamese construction firm, has announced it intends to divest entirely from two loss-making affiliated companies. It has not been made clear whether or not there is a buyer lined up.
This is part of a restructuring of Hoa Binh’s portfolio to address accumulated losses incurred over the past two years. As of March 31, the firm had racked up VND 3,182 billion or US$125 million in losses. This was at least in part due to a slowdown in construction work on the back of challenges in the real estate sector more broadly.
Before the news, on June 18, Hoa Binh, trading under the ticker HBC, was trading at VND 7,800. It has since fallen closing at VND 7,600 yesterday. Notably, as of June 21, foreign traders held 14.5 percent of the company’s shares with the company sporting a foreign ownership cap of 50 percent.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked