Vietnam real estate giant Novaland has banked its worst half year on record after audited financial reports found huge discrepancies from what was earlier reported, The Investor has reported. Specifically, the company’s own financial statements reported a profit of VND 3.5 trillion or US$142.2 million, however, an audit found the company had actually made a loss of VND 7.3 trillion or US$296.6 million.
All of this is in line with a downward spiral for Novaland which has been struggling since Vietnam’s housing bubble burst at the end of 2022. Not only has the company defaulted on a myriad of bond repayments, its justification to the market for the aforementioned audited financial reports reveals outstanding debts across the board from land rent fees to contract penalties.
Though some local media reports have suggested that Vietnam’s real estate industry is on the path to recovery, the reality is that the damage already done may be irrevocable. That said, insolvency proceedings in Vietnam are not all that common and generally firms can hold out quite a while before they eventually give up.
See also: Insolvency in Vietnam: Unpacked