Hoa Binh HBC owes 12.4 billion VND in bonds: What does VIS Rating say?

According to the October 2025 corporate bond market overview report of Vietnam Investment Credit Rating Joint Stock Company (VIS Rating), despite recording profits and maintaining a cash balance of about VND 300 billion at the end of the third quarter of 2025, Hoa Binh Construction Group Joint Stock Company (HBC) still failed to pay the principal of VND 12.4 billion for bond lot HBCH2225002 on October 31, 2025.

"This event shows a significant liquidity gap, accounting profit indicators or cash balances on financial statements do not fully reflect the actual payment capacity of the enterprise," VIS Rating assessed.

According to the investment credit rating company, although HBC has announced plans to deploy a large amount of work, most of the projects will only start in the third and fourth quarters of 2025, causing short-term cash flow to be limited, while liquidity pressure remains high.

“The delay in principal payments underscores the importance of deeper analysis of the issuer’s liquidity and cash flow dynamics, especially for large-scale enterprises with complex operating cycles,” the report stressed.

According to VIS Rating, HBC failed to pay the principal of VND 12.4 billion for bond lot HBCH2225002 on October 31, 2025.

On November 1, 2025, HBC sent an official dispatch to the Hanoi Stock Exchange and bondholders issued by HBC to announce information on the principal and interest payment situation.

Accordingly, HBC said it could not pay VND12.4 billion in principal for bond lot HBCH2225002 because it had not yet arranged the source of funds, and said it was negotiating with investors about paying principal and interest.

The tense financial situation coincided with a series of high-level personnel changes at Hoa Binh. Most notably, the Board of Directors approved the dismissal of Mr. Le Van Nam from the position of General Director, effective from October 31, 2025.

Mr. Le Viet Hieu - Permanent Deputy General Director and son of Chairman Le Viet Hai, was assigned to manage the company's operations until a decision was made to appoint a new General Director.

Previously, in September 2025, the company also recorded the departure of two Deputy General Directors, Mr. Dinh Van Thanh and Mr. Pham Hong Ha, along with Chief Financial Officer Nguyen Kim Loan, all of whom left on personal request. The company appointed Mr. Nguyen Duc Anh - Head of Finance Department, to replace the position of Chief Financial Officer.

This series of personnel changes took place in the context that Hoa Binh had just signed a strategic cooperation agreement and assumed the role of general contractor for phase 1 of the Gold Coast Vung Tau super project, with a total investment capital of up to 5 billion USD, equivalent to about 132,000 billion VND.

Regarding business results, in the first 9 months of 2025, Hoa Binh recorded revenue of nearly VND 2,760 billion, down 42.4% over the same period. Profit after tax reached VND 238.1 billion, down 71.5%.

However, core business activities (gross profit minus financial, sales and administrative expenses) in the first 9 months of the year recorded a loss of VND117.2 billion, while in the same period last year it made a profit of VND142.2 billion. This means that the gross profit generated was not enough to cover operating costs. The company escaped losses mainly thanks to financial revenue (up 65.4%) and other profits.

With this result, HBC has only completed 66.2% of its 2025 profit plan.

As of September 30, 2025, the company still had an accumulated loss of VND 2,081.9 billion. Although it had VND 319.4 billion in cash, HBC's total debt was up to VND 4,011.8 billion, double its equity, of which short-term debt accounted for the majority (VND 3,521.4 billion).

Thu An

Source: https://doanhnghiepvn.vn/doanh-nhan/hoa-binh-hbc-no-trai-phieu-12-4-ty-dong-vis-rating-nhan-dinh-gi/20251114074143450