SMC Investment and Trading JSC (HoSE: SMC) returned to profit in 2024, posting a VND 12.1 billion (US$465,000) gain after two years of deep losses, VietnamNet has reported.
The reversal came despite revenue falling to VND 8.93 trillion or US$343.5 million in 2024, down from over VND 21 trillion or US$807.7 million in 2021.
It also follows a significant reduction in bad debt provisions and the liquidation of a number of assets–that is to say, not necessarily an improvement in its business operations.
Of note in the article three major debtors are linked to the Novaland ecosystem, that has been in prolonged financial distress.
- Delta Valley Binh Thuan Company Limited: Owes SMC approximately VND 441 billion (US$16.96 million).
- Dalat Valley Real Estate Company Limited: Owes SMC approximately VND 169 billion (US$6.5 million).
- The Forest City Company Limited: Owes SMC approximately VND 131.5 billion (US$5.06 million).
For foreign investors, this reflects the broader contagion risks of Vietnam’s troubled real estate sector on industrial players. It also signals how financial engineering—not operating recovery—can swing profit outcomes and highlights that liquidity issues among property developers like Novaland are continuing to ripple across supply chains.
See also: Real Estate Industry in Vietnam