Revealing the enterprise in Hung Yen that won 3 bids in 1 day with super low savings rate
The savings rate is understood as a measure to evaluate the economic efficiency and budget spending efficiency of each locality and unit in bidding. Although there is no standard for this savings rate, the higher the savings rate, the more beneficial it is for the budget. According to some experts, a savings rate of about 3-5% is reasonable and acceptable to contractors.
In addition, the reduced savings rate also shows that the competition rate in bidding is low, especially in construction packages. The survey results on the National Bidding Network System recorded a fairly common situation of non-competitive bidding, each construction package has only 1 contractor participating in the bidding and winning the bid, the winning bid price is also close to the estimated price and the winning rate can be up to 100%.
In the past time, Hung Yen has spent 14,000 billion to implement traffic projects.
For example, the case of Tan Thanh Dat Construction and Service Company Limited (Tan Thanh Dat Company). This is a company that has won many bids in Hung Yen province with a high frequency of winning bids in the past year. Just counting from December 2022 to the present, this company has won 12 construction bids with an extremely small savings rate for the budget.
Specifically, on December 12, 2022, Tan Thanh Dat Company was selected as the contractor for Package No. 06: Construction of the project "Renovation and upgrading of the internal road in Hoa Binh Ha village, Tan Tien commune", invested by the People's Committee of Tan Tien commune (Van Giang district). The package price is more than 13,303 billion VND, the winning bid price of Tan Thanh Dat Company is more than 13,296 billion VND, saving 7 million VND with a savings rate for the State budget of about 0.05%.
Just a few days later, on December 14, 2022, the consortium of Viet Long Construction and Trading Joint Stock Company and Tan Thanh Dat Company was again selected as the contractor for package 01: "Construction of works under the project of Renovation and expansion of the central axis road from the bus station intersection to DT.387 of the People's Committee of My Hao Town. This is a large package with a bidding price of up to more than 107.408 billion VND. The winning bid price of the consortium was more than 107.388 billion VND, saving 20 million VND with a savings rate for the State budget at a super low level of 0.01%.
One day later, on December 15, 2022, Tan Thanh Dat Company continued to be selected as the contractor for package No. 06: Construction of the project "Renovation and upgrading of rural roads in Nghia Tru communes", invested by the People's Committee of Nghia Tru commune (Van Giang district). The package price is more than 8,506 billion VND. The winning bid price of Tan Thanh Dat Company is more than 8.5 billion VND, saving about 6 million VND with a savings rate for the State budget of 0.07%.
On December 20, 2022, together with Tan Thanh Hung Yen Joint Stock Company and Phat Viet Investment Joint Stock Company, Tan Thanh Dat Company won the bid for the package "Construction of the road from National Highway 39 to DH.42 extension" of Yen My District People's Committee with an estimated price of more than 123.957 billion VND. The winning bid price of this joint venture was more than 123.740 billion VND, saving 217 million VND with a savings rate for the State budget of about 0.17%.
It is worth mentioning that on December 23, 2022, Tan Thanh Dat Company was continuously selected for 3 bid packages in Hung Yen, including 2 bid packages as an independent bid package and 1 package participating in a joint venture.
The first package is package 07: “Construction of the project to improve and upgrade rural traffic roads in Thang Loi commune (Van Giang district)”. The package price is over 12,669 billion VND, the winning bid price is over 16,660 billion VND, saving 9 million VND with a savings rate for the State budget of 0.07%.
Next is package 07: "Construction of the project of building classrooms and auxiliary items for Xuan Quan Kindergarten (Van Giang district)" with a package price of more than 12,991 billion VND. The winning bid price of Tan Thanh Dat Company is more than 12,983 billion VND, saving 8 million VND with a savings rate for the State budget of about 0.06%.
Finally, the large bid package of Yen My District People's Committee with an estimated price of over 182.749 billion VND. Tan Thanh Dat Company participated with the consortium of Tan Thanh Hung Yen Joint Stock Company and Tien Ngan Company Limited and won the bid with a price of 182.513 billion VND, saving 236 million VND with a savings rate for the State budget of about 0.1%.
Thus, in December 2022 alone, Tan Thanh Dat Company won 7 bid packages at the People's Committees of communes, districts and towns in Hung Yen province with the lowest savings rate of about 0.01% and the highest of only about 0.17%.
By 2023, this company will continue to win a number of other bids with extremely low savings rates for the State budget. Notably, the large bid that this company participated in with a consortium recently won the bid, which is the bid package "Construction of the National Highway 38B bypass through Tien Lu district, Hung Yen province, from DH.72 to DT.376" invested by the Tien Lu District Investment and Construction Management Board. The bid price is more than 124.443 billion VND, Tan Thanh Dat Company and the consortium with Tien Ngan Company Limited won the bid with a price of more than 124.386 billion VND. Saving 57 million VND with a savings rate for the State budget of 0.04%.
With a 100% winning rate, how does Tan Thanh Dat do business?
According to the investigation of the Journalist and Public Opinion Newspaper, Tan Thanh Dat Company is located in Xam Hong village, Thang Loi commune (Van Giang district, Hung Yen province) with Mr. Nguyen Van Thiem as the legal representative. According to business data, the current registered charter capital of Tan Thanh Dat Company is 350 billion VND.
In addition, Mr. Nguyen Van Thiem is also the legal representative of Trang Nhung Private Enterprise. This enterprise is also located in Xam Hong village, Thang Loi commune, Van Giang district, Hung Yen province. Its main business is the retail sale of motor fuel in specialized stores.
Regarding Tan Thanh Dat Company, the shareholders include: Nguyen Van Thiem contributed 50 billion VND with a capital contribution ratio equivalent to 14.286% of the total charter capital; Nguyen Thanh Dat contributed 130 billion VND, equivalent to 37.143% of the total charter capital; Nguyen Thi Thuy Trang contributed 20 billion VND, equivalent to 5.714% of the total charter capital; Nguyen Thi Duong contributed 30 billion VND, equivalent to 8.571% of the total charter capital; Tran Van Kien contributed 120 billion VND, equivalent to 34.286% of the total charter capital.
However, according to available data, Tan Thanh Dat's actual charter capital is currently only 20 billion VND, which is much lower than the registered figure. The company's equity is also only around 20 billion VND due to its very thin annual accumulated profits. In recent years, Tan Thanh Dat has only made a profit of a few hundred million VND per year despite continuously winning large contracts.
In the period from 2016 to present, Tan Thanh Dat has won 55 bids, mainly focusing on the period from 2022 to 2023 with a winning rate of 100%. Of which, only 7 bids had to compete with competitors and 11 bids participated as a joint venture. The total value of bids related to this company is up to more than 1,171 billion VND. The total value of winning bids as an independent company is more than 366 billion VND.
Despite continuously winning large contracts, Tan Thanh Dat's revenue fluctuated erratically and was not too large, just above or below 100 billion VND. After a year of record growth, the company's revenue decreased by 19% to below 90 billion VND. This is the second lowest revenue in the past 5 years, only higher than the figure in 2019.
Notably, revenue shrank in the context of Tan Thanh Dat's asset size suddenly skyrocketing after 3 consecutive years of decline. By the end of 2022, the company's total assets reached over 110 billion VND, an increase of more than 20% compared to a year earlier. The source of funding for the increase in assets mainly came from liabilities. As of December 31, 2022, Tan Thanh Dat's total liabilities had increased by nearly 26% to over 89 billion VND, nearly 4 times its equity.
In recent years, Tan Thanh Dat's debt/equity ratio has been consistently maintained at 3-4 times. This may be the reason why the company's profits have been eroded. Every time it bids, it wins a huge bid with a super low savings rate, causing public opinion to question Tan Thanh Dat's disproportionate business results.
Journalist & Public Opinion Newspaper will continue to inform about this enterprise and the winning bid packages in Hung Yen in the next issue.
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