The investor of 11,000 m2 of prime land for growing vegetables has been continuously losing money for many years.

Hundred billion company, revenue of several hundred million dong

As Lao Dong reported, in August 2023, the investor of the 1,000-year Thang Long Oncology and Cosmetic Surgery Hospital Project (a prime land of 11,000 m2 in Long Bien district, Hanoi, becoming a place to grow vegetables and park cars), Hanoi Thousand Years Joint Stock Company, suddenly reduced its charter capital from 411 billion VND to 333 billion VND.

Data on the National Business Registration Portal ( Ministry of Planning and Investment ) shows that Mr. Pham Huy Thuong (born in 1962), who used to hold up to 99.75% of the capital (updated March 2018) of Hanoi Thousand Years Joint Stock Company, holds the role of Chairman of the Board of Directors and General Director of the Company.

Hanoi Thousand Years Company's charter capital reached 333 billion VND, updated August 2023. Photo: Screenshot. — The charter capital of Hanoi Thousand Years Joint Stock Company reached 333 billion VND, updated in August 2023. Photo: Screenshot.

As of December 31, 2022, the total assets of Hanoi Thousand Years Joint Stock Company were approximately VND 349 billion, an insignificant change compared to the beginning of the year. Notably, cash was nearly VND 52 million, and demand deposits were nearly VND 20 million.

In addition, this enterprise has about 135 billion VND in investments to be held until maturity, and at the same time, 184 billion VND is invested in capital contributions to other enterprises.

Data shows that the majority of Hanoi Thousand Years Joint Stock Company's capital up to now is equity capital with 348 billion VND.

Surprisingly, despite having total assets of hundreds of billions of VND, at the end of 2022, the total revenue of Hanoi Thousand Years Joint Stock Company was only 120 million VND, a decrease of more than 200 million VND compared to the same period in 2021.

In the context of low and seemingly symbolic revenue, the company still has to spend billions of dong on management and business costs. As a result, Hanoi Thousand Years Joint Stock Company lost nearly 800 million dong in 2022.

Losses on losses and questions about investors' capacity

Not only in 2022, in 2021, Hanoi Thousand Years Joint Stock Company also lost nearly 300 million VND.

Financial data obtained by Lao Dong shows that as of December 31, 2022, Hanoi Thousand Years Joint Stock Company is suffering an accumulated loss of nearly 45 billion VND.

With a total loss in the last 2 years (2021 and 2022) of just over 1 billion VND, the accumulated loss of nearly 45 billion VND shows that the loss-making business situation of Hanoi Thousand Years Joint Stock Company actually lasted from previous years.

Hanoi Thousand Years Joint Stock Company was established in September 2007, with its head office located at Room 901c, Red River Sun Building, 23 Phan Chu Trinh, Phan Chu Trinh Ward, Hoan Kiem District, Hanoi City.

The fact that the company has continuously suffered losses of nearly 45 billion VND, with annual revenue of only a few hundred million VND and low cash flow is raising many questions about the capacity and actual financial situation of Hanoi Thousand Years Joint Stock Company.

11,000 m2 land plot in Long Bien district for the 1,000-year Thang Long Oncology and Cosmetic Surgery Hospital Project. Photo: Vinh Hoang — The 11,000 m2 plot of land in Long Bien district is used for the 1,000-year Thang Long Oncology and Cosmetic Surgery Hospital Project. Photo: Vinh Hoang

Meanwhile, as Lao Dong reported, Hanoi Ngan Nam Joint Stock Company is the enterprise that was granted an investment certificate by the Hanoi People's Committee for the 1,000-year Thang Long Oncology and Cosmetic Surgery Hospital Project on a prime land of 11,000 m2 in Long Bien district, Hanoi on February 19, 2014.

However, after nearly 10 years of being granted an investment certificate, the land of more than 11,000 m2 where the project was planned to be implemented is still just an empty lot, becoming a place for people to grow vegetables and park their vehicles. Until December 2023, the entire land planned to build the hospital was still tightly surrounded by corrugated iron.

In a document responding to the petition of Long Bien district voters to review and re-evaluate the suitability of building a hospital on the above plot of land, the Hanoi People's Committee said that by the end of November 2020, the hospital project had completed site clearance and environmental procedures at the project.

As of mid-October 2023, the project has not yet been allocated or leased land, has not yet been implemented, and is still undergoing appraisal of the feasibility study report at the Department of Construction.

According to the progress in the new investment certificate issued on September 7, 2022, the project is expected to be completed by the third quarter of 2025. "After receiving the investor's report, the Department of Planning and Investment is responsible for inspecting, evaluating and proposing according to regulations," said the Hanoi People's Committee.

General Director of Hanoi Thousand Years Joint Stock Company wants to advance land fund when building Xuyen Tam canal

At a 2018 investment call conference chaired by Ho Chi Minh City Party Secretary Nguyen Thien Nhan, General Director of Hanoi Thousand Years Joint Stock Company, Mr. Pham Huy Thuong, proposed that the Ho Chi Minh City People's Committee adjust the boundary expansion, advance the corresponding land fund... when implementing the Xuyen Tam Canal Project (flowing through Binh Thanh and Go Vap districts).

Initially, the Xuyen Tam Canal Project was approved by the Ho Chi Minh City People's Committee with a budget of 123 billion VND. In 2011, Hanoi Thousand Years Joint Stock Company proposed to do the project in the form of BT (land for construction), with the total capital skyrocketing to 7,000 billion VND.

By mid-June 2020, the weekly working schedule of the Standing Committee of the Ho Chi Minh City People's Committee still had a plan to work with Hanoi Ngan Nam Joint Stock Company on the Xuyen Tam Canal Project.

However, in October 2023, the Ho Chi Minh City People's Committee officially approved this project with a total investment of more than VND 9,600 billion. Surprisingly, the project was assigned to the Ho Chi Minh City Urban Infrastructure Construction Investment Project Management Board as the investor, not the Hanoi Thousand Years Joint Stock Company, which has been associated with this project for the past decade.

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