Steel King Tran Dinh Long registered as an urban area of nearly 3,372 billion in Hung Yen

DNHN - The Department of Planning and Investment of Hung Yen province announced the results of the Minh Hai - Phan Dinh Phung urban area project invitation dossier openings. Consequently, only My Hao Urban Development Joint Stock Company is registered to ca

My Hao Urban Development JSC is the only registered investor to implement the project. It is known that the company was founded in November 2022, has its registered office in the province of Hung Yen, and specializes in the construction of houses, infrastructure, and real estate business.

According to the 2022 Annual Report of Hoa Phat Group Joint Stock Company (HOSE: HPG), My Hao Urban Development Joint Stock Company is a tier 4 subsidiary with 99.8 percent capital ownership by HPG.

The project is located on 33.16 hectares in Minh Hai commune, Van Lam district, and Phan Dinh Phung ward, My Hao town, Hung Yen province, with a population of approximately 7,330. Products offered include 527 adjacent commercial houses, 117 commercial houses with villas, and...

The preliminary total investment for the project is approximately 3,371,6 billion VND. The cost of compensation and resettlement assistance is 143 billion VND, while the cost of implementing the project is 3,228 billion VND.

According to Forbes Magazine (USA), billionaire Tran Dinh Long's assets - Chairman of Hoa Phat Group's Board of Directors - remained at $938.1 million as of October 11, 2022. Mr. Tran Dinh Long's assets have decreased by more than 660 million USD since mid-October. The businessman's fortune has decreased by more than $2.2 billion compared to more than half a year before Forbes published its list of the world's billionaires in 2022.

When HPG shares were continuously sold off on the stock exchange, the value of Mr. Tran Dinh Long's assets plummeted. At the end of the 10.11 session, HPG stock dropped to the floor price of 12,100 dongs. Compared to its price at the beginning of the year, HPG stock has decreased by nearly 75 percent at the present moment. HPG stock has lost close to 80% of its value since its all-time high exactly one year ago. Consequently, the market capitalization of Vietnam's largest steel company decreased by more than 7 billion USD, falling to over 70,300 billion VND. This number further distinguishes Hoa Phat from the largest capitalization group on Vietnam's stock market.

Hoa Phat Group Joint Stock Company (Code: HPG) held its 2023 Annual General Meeting of Shareholders on March 30 to approve important contents such as the company's 2022 business results and 2023 business plan with sales. The revenue target is 150 billion dongs, and the profit after taxes is 8 billion dongs.

Concurrently, at the General Meeting of Shareholders, Hoa Phat Chairman Tran Dinh Long addressed the issue of not paying dividends and responded to several shareholder questions.

When asked by shareholders about Hoa Phat's desire to become one of the top three real estate companies in Vietnam, developing megacities ranging from 300 to 500 hectares over the next decade, Mr. Long emphasized that Hoa Phat did not follow the move into real estate.

" Hoa Phat is concentrating heavily on the Dung Quat 2 project, which will cost more than VND 75,000 billion." Mr. Long reaffirmed, "The real estate strategy has not changed, but cautious steps have been taken."

In response to a question about why certain properties could not be offered for sale, the chairman of Hoa Phat acknowledged that the infrastructure investment was relatively sound. However, the Pho Noi project, along with other projects in Hung Yen and across the nation, is experiencing difficulties with legal documents, procedures, and policies... Consequently, real estate is solely dependent on customer factors. The agency is not yet available for purchase, but there is no other explanation.

Although industrial real estate does not generate a great deal of profit, it is stable and has a good profit rate. With experience, Hoa Phat will deploy existing industrial parks and buy or apply for new ones to expand 4-6 more zones, bringing the total number of industrial parks to 10 by 2030. having.

The Chairman of Hoa Phat stated that the company had received numerous complaints that it was "slow" in the real estate industry. Mr. Long stated, "At this point, however, it's clear that the decision was correct."

Mr. Long confirmed that Hoa Phat will not repurchase (M&A) real estate projects during the current time frame, but will instead concentrate on completing legal procedures.

Mr. Tran Dinh Long also told shareholders at last year's Annual General Meeting of Shareholders, "No one can produce steel indefinitely. Hoa Phat is a multi-industry company, and one of its divisions is real estate, as is the case with most businesses.

Mr. Long stated that Hoa Phat is developing the real estate sector in two ways, particularly emphasizing the housing market.

Nhan Ha