Novaland (NVL), one of Vietnam’s largest real estate developers, posted a VND 4,395 billion (approx. US$176 million) loss in 2024 and faces ongoing concerns about its ability to continue as a going concern, according to its latest audited financial statements and reported by CafeF.
Key points in the article include:
- Auditor warning: After ending its partnership with PwC, Novalan’s new auditor Moore AISC has flagged “material uncertainty” over Novaland’s ability to continue operations, citing negative cash flows and unfulfilled short-term debt obligations.
- Debt load: As of end-2024, Novaland held VND 61,565 billion (US$2.5 billion) in financial lease and loan liabilities, with VND 36,978 billion (US$1.48 billion) due short term.
- Restructuring plan: The group says it has restructured VND 17,898 billion (US$720 million) of debt and aims to liquidate VND 26,542 billion (US$1.07 billion) in assets. So far, it has collected VND 8,059 billion and secured deals or interest for much of the remainder.
- Additional support: Novaland expects VND 10,409 billion in new credit and says major shareholders have committed to financial support. It is also relying on changes in land valuation policy to avoid a VND 6,707 billion tax bill.
- Continued losses: The 2024 loss was mainly driven by provisions for tax obligations and rising financial expenses. While revenue rose to VND 9,080 billion (US$363 million), gross profit collapsed to just VND 84 billion due to cost pressures.
Novaland’s financial position highlights the broader liquidity challenges facing Vietnam’s property sector. Its heavy reliance on debt restructuring, asset sales, and legal reinterpretations underscores continued risk. Though the company reports progress in negotiations and restructuring, auditor caution suggests ongoing uncertainty, and the ability to meet obligations in 2025 will be a critical test of its recovery.
See also: Real Estate Industry in Vietnam