The investor of 11,000 square meters of prime land for growing vegetables has suffered continuous losses for many years.

A company worth hundreds of billions of dong, with revenue of only a few hundred million dong.

As reported by Lao Dong newspaper, in August 2023, the investor of the Thang Long 1,000th Anniversary Oncology and Cosmetic Surgery Hospital Project (a prime 11,000 m2 plot of land in Long Bien district, Hanoi, which has become a vegetable garden and parking lot) – Hanoi Ngan Nam Joint Stock Company – unexpectedly reduced its charter capital from 411 billion VND to 333 billion VND.

Data from the National Business Registration Portal ( Ministry of Planning and Investment ) shows that Mr. Pham Huy Thuong (born in 1962), who once held up to 99.75% of the capital (updated March 2018) of Hanoi Ngan Nam Joint Stock Company, served as Chairman of the Board of Directors and General Director of the company.

Hanoi Millennium Company's charter capital reached 333 billion VND, as of August 2023. Photo: Screenshot. — The charter capital of Hanoi Millennium Joint Stock Company reached 333 billion VND, as of August 2023. Photo: Screenshot.

As of December 31, 2022, the total assets of Hanoi Ngan Nam Joint Stock Company amounted to approximately VND 349 billion, showing negligible change compared to the beginning of the year. Notably, this included nearly VND 52 million in cash and nearly VND 20 million in demand deposits.

In addition, the company has approximately 135 billion VND in investments held until maturity, and has allocated 184 billion VND for equity investments in other businesses.

The data shows that the majority of Hanoi Ngan Nam Joint Stock Company's capital to date is equity capital, amounting to 348 billion VND.

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

Despite low and seemingly symbolic revenue, the company still had to spend billions of dong on management and business expenses. As a result, Hanoi Ngan Nam Joint Stock Company incurred a loss of nearly 800 million dong in 2022.

Losses piled upon losses, raising questions about the investor's competence.

Not only in 2022, but also in 2021, Hanoi Ngan Nam Joint Stock Company incurred losses of nearly 300 million VND.

Financial data obtained by Lao Dong newspaper shows that, as of December 31, 2022, Hanoi Ngan Nam Joint Stock Company was incurring accumulated losses of nearly 45 billion VND.

With total losses in the last two years (2021 and 2022) amounting to just over 1 billion VND, the cumulative losses reaching nearly 45 billion VND indicate that the loss-making business situation of Hanoi Ngan Nam Joint Stock Company has actually been ongoing for many years prior to that.

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

The fact that the company has consistently incurred losses of nearly 45 billion VND, with annual revenue of only a few hundred million VND and low cash reserves, raises many questions about the capabilities and actual financial situation of Hanoi Ngan Nam Joint Stock Company.

An 11,000 m2 plot of land in Long Bien district is being allocated for the Thang Long 1,000th Anniversary Oncology and Cosmetic Surgery Hospital Project. Photo: Vinh Hoang. — An 11,000 m2 plot of land in Long Bien district is being used for the Thang Long 1,000th Anniversary Oncology and Cosmetic Surgery Hospital Project. Photo: Vinh Hoang.

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

However, nearly 10 years after receiving the investment certificate, the more than 11,000 m2 plot of land where the project was planned remains just an empty field, used by locals for growing vegetables and parking cars. As of December 2023, the entire area designated for the hospital construction is still completely enclosed by corrugated iron fences.

In a written response to a petition from voters in Long Bien district regarding the review and reassessment of the suitability of building a hospital on the aforementioned plot of land, the Hanoi People's Committee stated that by the end of November 2020, the hospital project had only completed land clearance and environmental procedures.

As of mid-October 2023, the project had not yet been allocated or leased land, nor had it commenced implementation. The feasibility study report was still under review at the Department of Construction.

According to the Hanoi People's Committee, based on the progress schedule in the 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 making recommendations in accordance with regulations," the Hanoi People's Committee stated.

The General Director of Hanoi Ngan Nam Joint Stock Company wants to receive advance land allocation for the construction of the Xuyen Tam canal.

At an investment promotion conference in 2018 chaired by the Secretary of the Ho Chi Minh City Party Committee, Nguyen Thien Nhan, Mr. Pham Huy Thuong, General Director of Hanoi Ngan Nam Joint Stock Company, proposed that the Ho Chi Minh City People's Committee allow adjustments to expand the boundaries and provide advance land for reciprocal purposes 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. By 2011, Hanoi Ngan Nam Joint Stock Company proposed implementing the project under the BT (Build-Transfer) model, with the total capital skyrocketing to 7,000 billion VND.

By mid-June 2020, the weekly work schedule of the Standing Committee of the Ho Chi Minh City People's Committee still included a meeting with Hanoi Ngan Nam Joint Stock Company regarding 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 over 9,600 billion VND. Surprisingly, the project was assigned to the Ho Chi Minh City Urban Infrastructure Investment and Construction Project Management Board as the investor, instead of Hanoi Ngan Nam Joint Stock Company, which had been involved with this project for over a decade.

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