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How does the business of the two "female generals" who had to pay thousands of billions of VND to Van Thinh Phat operate?

Báo Phụ nữ Việt NamBáo Phụ nữ Việt Nam18/04/2024


The verdict of the People's Court on the Van Thinh Phat case, the enterprise of two "female generals", Ms. Nhu Loan and Ms. Viet Thanh, must return 2,900 billion VND and 2,300 billion VND respectively.

The jury read out the verdict for 86 defendants in the case of Van Thinh Phat, SCB bank and related parties.

To ensure execution of the judgment, a series of individuals and organizations must return money to Van Thinh Phat, in which, 2 "female generals" - Ms. Nguyen Thi Nhu Loan and Ms. Tran Thi Viet Thanh must return to Ms. Truong My Lan an amount of up to several thousand billion VND.

Specifically, Quoc Cuong Gia Lai Company (QCG, HOSE) of female CEO Nhu Loan must return the entire amount of money received from the defendant, which is 2,882.8 billion VND. And Hong Phat Real Estate JSC of female chairwoman Viet Thanh must return the amount of 2,355 billion VND.

Established in 1994, Quoc Cuong Gia Lai Company operates mainly in the fields of investment, development, real estate business, hydropower and rubber plantation.

Ms. Nguyen Thi Nhu Loan is the General Director and member of the Board of Directors of Quoc Cuong Gia Lai Company and the mother of businessman Cuong Do La.

Despite facing the above unfavorable information, contrary to the speculation of many investors, Quoc Cuong Gia Lai's QCG stock still maintained a hot growth streak.

Notably, in the session of April 15, despite the market falling sharply by 60 points, QCG continued to increase by 4%, liquidity skyrocketed, 3 times the average trading volume of the last 10 sessions, 4.7 million shares were changed hands.

Doanh nghiệp 2 “nữ tướng” phải trả cả ngàn tỷ đồng cho Vạn Thịnh Phát kinh doanh ra sao?- Ảnh 1.

QCG continuously increased to the ceiling despite market fluctuations (Photo: SSI iBoard)

By the session of April 17, the market continued to lose another 22.7 points, QCG still increased "purple" by 6.7% (the strongest increase in 4 consecutive sessions), reaching a market price of 16,700 VND/share.

After 4 "ceiling" sessions, QCG's value on the stock exchange increased by 23.7%, from VND 13,500/share to VND 16,700/share.

This means that female CEO Nhu Loan has "pocketed" more than 300 billion VND in her assets on the stock exchange after a long increase recently. Specifically, with nearly 102 million QCG shares (accounting for 37.05%), she is currently the largest shareholder at QCG, her assets have increased to 1,703.4 billion VND.

Comparing the amount payable to Ms. Truong My Lan, this amount is 100 times larger than the company's current cash (VND 28.8 billion) and accounts for about 30% of total assets (VND 9,567 billion) at QCG.

Regarding the business situation, in 2023, QCG earned 432.5 billion VND in revenue, only 1/3 compared to the same period last year. Profit after tax also "dropped" to 3.2 billion VND, down 90% compared to 2022.

Profit after tax development in recent years at QCG

Doanh nghiệp 2 “nữ tướng” phải trả cả ngàn tỷ đồng cho Vạn Thịnh Phát kinh doanh ra sao?- Ảnh 2.

Source: Financial Statements

Explaining the above results, the company said that last year, the real estate industry faced many difficulties. Overlapping legal procedures for projects were still in the process of being revised and completed; procedures for project implementation were not resolved. In addition, bank interest rates increased, causing great pressure on customers and businesses. These unfavorable factors caused the demand for real estate transactions to decrease, leading to a decrease in revenue and profit.

At the same time, Hong Phat Real Estate JSC (Hong Phat Company) and its chairwoman Tran Thi Viet Thanh are both quite secretive to the media.

Established in 2005, Hong Phat Company mainly operates in the field of trading and brokerage of real estate products.

Regarding the business situation, for many years, Hong Phat Company's real estate projects in Long An have remained in a "stuck in place" state, attracting public attention.

The project was approved in principle by Long An province in 2003, and first granted a certificate in 2008 with an area of ​​311 hectares and many component projects: High-class residential area project, horse racing track and horse racing club in Duc Hoa district. The project has only been partially implemented, while hundreds of hectares are left vacant, causing difficulties and affecting people's lives.

According to information from Dau Tu newspaper in July 2022, due to the case of enforcement of the Arbitration Award on the establishment of a joint venture to implement projects in Long An province, which encountered difficulties, was complicated and involved foreign elements, and had prolonged effects on the stability and socio -economic development of the locality, the Department of Civil Judgment Enforcement of Long An province proposed that the Provincial People's Committee include the case in the list of cases under the jurisdiction of the Prime Minister's Working Group to review, resolve and remove difficulties and obstacles.

In addition, this consequence also comes from the story of being "forced into a joint venture" between China Policy Limited Company (CPL Company, headquartered in the British Virgin Islands) and Hong Phat Company. Specifically, in 2007, the two companies joined hands to contribute capital to invest in the project.

However, due to changes in land policies, increased compensation and resettlement costs, etc., conflicts arose between the two companies. In 2023, the Vietnam International Arbitration Center (VIAC) issued a ruling to establish a joint venture between the two companies, but the two companies still did not voluntarily take action to form a joint venture.

As of 2023, the above projects have been "inactive" for 15 years.



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