Won 85 bid packages worth more than one trillion, but all were close to the estimated price and had very low savings rates.
In Ba Ria - Vung Tau, Hoang Gia Construction - Trading Investment Company Limited (Hoang Gia Company) is not too prominent in the bidding sector. Recently, this enterprise suddenly attracted attention when, as of February 2023, the enterprise had only participated in 87 bidding packages, but of which it had won 85 packages, failed 1 package and 1 package had no results.
Accordingly, the total winning bid value was up to 1,117 billion VND, with the lowest bid rate when participating being 99.81% and the average winning bid price compared to the estimated price being 99.14%. It is known that the bid packages won by Hoang Gia Company are all public investment bid packages, using local budget sources for construction and infrastructure construction in Ba Ria - Vung Tau province.
Package: Construction of section Km0+360-Km4+000 of My Xuan – Ngai Giao – Hoa Binh – Binh Chau Road project (Road 991) in Xuyen Moc district with the winning price of 110,818 billion. The winning contractor was identified as the consortium of Tan Thinh Construction – Service Company Limited, Chien Thang Construction Company Limited and Hoang Gia Construction – Trading Investment Company Limited.
For example, in February 2023 alone, Hoang Gia Company won 3 large bid packages with a total value of about 31,699 billion, specifically: On February 6, 2023, Mr. Nguyen Thanh Tong - Director of the Construction Investment Project Management Board of 2 Ba Ria cities signed Decision No. 35/QD-QLDA 2 on approving the winning bid results of bid package No. 01: "Construction and installation of upgrading, maintenance and repair works for roads in Long Phuoc commune in 2023". The winning bid price was 12,934 billion.
Just one day later, on February 7, 2023, Mr. Nguyen Thanh Tong continued to sign Decision No. 44/QD-QLDA 2 on approving the results of contractor selection for Package 01 - Construction and installation under the project to upgrade, maintain and repair roads in Long Toan ward in 2023. The winning bid price was 5,844 billion.
On February 14, 2023, Hoang Gia Company continued to win the Construction and Installation package of the Le Hong Phong Street Renovation project, My Xuan ward of the Urban Management Department - Phu My Town People's Committee with a value of 12,921 billion.
It is known that from 2021 to now, 5 bid packages of the Urban Management Department - People's Committee of Phu My Town have "fallen" into the hands of Hoang Gia Company with a total value of 42,650 billion, with a winning bid rate compared to the estimated price quite close to 99.81%.
More surprisingly, according to the investigation of the Journalist & Public Opinion newspaper, in Chau Duc district (Ba Ria - Vung Tau) alone, Hoang Gia company has won a series of bid packages with units with a total value of up to 329,704 billion, specifically:
In 2018, won 9 bid packages of the Department of Agriculture and Rural Development of Chau Duc district with a total value of 26,065 billion, achieving a winning bid price ratio compared to the estimated price of 99.07%.
In addition, Hoang Gia Company has won a series of bids from the Construction Investment Project Management Board (Chau Duc District People's Committee) with a total value of up to hundreds of billions. Some of the "huge" bids that this unit has won in Chau Duc District include:
On October 11, 2021, winning package No. 18 - Construction and installation: Leveling the ground, traffic routes in Area 1 (road surface, sidewalk, drainage, trees, traffic safety) under the Technical Infrastructure project of the resettlement area south of Ngai Giao town, Chau Duc district with a winning bid value of 61,267 billion; On April 8, 2022, winning package No. 12 - Construction and installation under the project of Renovation and construction of temporary bridges for people born in 2020-2021 in Chau Duc district with a winning bid value of 54,507 billion...
Or like 3 "huge" bid packages of the Traffic Project Management Board (People's Committee of Ba Ria - Vung Tau province) with a total value of 263,172 billion also went to the joint venture between Hoang Gia company and a number of enterprises, achieving a winning bid price ratio compared to the estimated price of 99.84%, specifically:
On October 26, 2021, Mr. Hoang Trung Kien - Director of the Transport Project Management Board of Ba Ria - Vung Tau province signed the Decision approving the results of contractor selection for package No. 17: Construction and installation of the section from Km8+100 to Km11+319.96 and Lo O Bridge of the Provincial Road 997 project (DT 992C road) in Dat Do district and Chau Duc district. Accordingly, the winning bidder is the consortium of Hoang Gia Construction - Trading Investment Co., Ltd. and Quang Huy Electrical Construction and Installation Co., Ltd. (address 679 Vo Thi Sau, Phuoc Nguyen ward, Ba Ria city, Ba Ria - Vung Tau province) with a winning bid price of 83.995 billion.
On August 31, 2022, Mr. Hoang Trung Kien - Director of the Traffic Project Management Board of Ba Ria - Vung Tau province signed the Decision approving the results of contractor selection for package No. 10: Construction and installation of phase 2 of the project: Road to Long Son oil and gas industrial park, Vung Tau city with a winning price of 68,358 billion. The winning consortium is still 2 "familiar" names: Hoang Gia Construction - Trading Investment Co., Ltd. and Quang Huy Electrical Construction and Installation Co., Ltd.
On September 13, 2022, Mr. Hoang Trung Kien - Director of the Transport Project Management Board of Ba Ria - Vung Tau province signed the Decision approving the results of contractor selection for package No. 19: Construction and installation of section Km0+360-Km4+000 of the My Xuan - Ngai Giao - Hoa Binh - Binh Chau Road project (Road 991) in Xuyen Moc district with a winning price of 110,818 billion. The winning contractor was identified as the consortium of Tan Thinh Construction - Service Co., Ltd., Chien Thang Construction Co., Ltd. and Hoang Gia Construction - Trading Investment Co., Ltd.
According to the investigation of the Journalist & Public Opinion newspaper, the bidding packages that Hoang Gia Company participated in and was selected to win all had winning bid prices close to the estimated price and achieved a very low savings rate.
Continuously won 85 large contracts, worth thousands of billions, but business was at a loss, equity was eroded
According to the investigation of the Journalist & Public Opinion newspaper, Hoang Gia Construction - Trade Investment LLC was established on May 14, 2013 at 32 Huynh Khuong An, Phuoc Hung Ward, Ba Ria City, Ba Ria - Vung Tau Province with the legal representative and General Director being Mr. Dang Van Dat. The company currently has a charter capital of 50 billion VND, of which Mr. Dang Van Dat (owns 10% of the capital) and Mr. Hoang Anh Giap (owns 90% of the capital).
Although the owner's equity has been around 50 billion VND for many years, the scale of Hoang Gia's assets has fluctuated erratically due to fluctuations in payables.
In 2020, liabilities suddenly skyrocketed fivefold to VND152 billion at the end of 2020. This figure continued to increase to VND265 billion at the end of 2021, 5.5 times higher than equity. This pushed the company's total assets to exceed VND300 billion in 2021, one and a half times higher than a year earlier and 3.6 times higher than at the end of 2019.
Along with the expansion, Hoang Gia's revenue in 2020 also increased sharply by 2.6 times over the same period, reaching 166.3 billion VND. After deducting expenses, the company's net profit was nearly 1.5 billion VND, many times higher than the figures of only a few tens of millions per year in the previous period.
In 2021, despite the Covid-19 pandemic, Hoang Gia still recorded a revenue increase of 42.2% over the same period to VND 236 billion. However, the company lost VND 3.2 billion mainly due to the very high cost of goods sold, up to VND 216 billion, an increase of VND 64 billion, equivalent to 42.1% over the previous year.
Small scale and "sluggish" business make public opinion question the real capacity of Hoang Gia when it continuously wins bids for projects with a total value of up to thousands of billions of VND.
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