Econ
Inventories of Vietnam’s 20 listed property firms hit US$7.4 billion
High inventories were attributable to sluggish construction that was caused by legal loopholes.
The unsold value of real estate at 20 companies in Vietnam was roughly VND174.7 trillion (US$7.4 billion) as of the end of March 2019.
Inventories from this group of 20 rose 10% from the beginning of the year, VnEconomy has reported.
In terms of unsold value, Vinhomes (coded VHM) – a member of Vietnam’s biggest private conglomerate Vingroup – posted the largest amount of around VND37 trillion (US$1.6 billion), followed by Novaland (NVL) with VND35.7 trillion (US$1.55 billion), and Becamex (BCM) with VND22 trillion (US$950 million).
Meanwhile, Hai Phat Investment JSC (HPX) recorded the sharpest rise in the inventories with an increase of 150% within three months, or from VND1.74 trillion (US$75 million) in January to VND2.89 trillion (US$125 million) in March.
Nam Long Group (NLG) saw an increase of 50% in the inventories which reached VND4.89 trillion (US$21 million) at the end of the first quarter.
Surprisingly, inventories as per equity were high. Accordingly, the rate of inventories out of equity at Intresco (ITC) was about 79% with VND2.9 trillion (US$126 million) worth of unsold real estate, followed by Quoc Cuong Gia Lai JSC (QCG) with 69.4%, and Becamex Infrastructure Development Joint Stock Company (IJC) with 62.5%.
Sluggish construction was attributable to the high inventories, VnEconomy reported, adding that the legal loopholes have caused stagnant construction progress at a number of projects.
High unsold value coupled with high interest rates has put some property developers in difficulties, according to the economic newswire.
Inventories at 20 listed companies (the rate of inventories on equity/unit: VND trillion). Photo: VnEconomy
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In terms of unsold value, Vinhomes (coded VHM) – a member of Vietnam’s biggest private conglomerate Vingroup – posted the largest amount of around VND37 trillion (US$1.6 billion), followed by Novaland (NVL) with VND35.7 trillion (US$1.55 billion), and Becamex (BCM) with VND22 trillion (US$950 million).
Meanwhile, Hai Phat Investment JSC (HPX) recorded the sharpest rise in the inventories with an increase of 150% within three months, or from VND1.74 trillion (US$75 million) in January to VND2.89 trillion (US$125 million) in March.
Nam Long Group (NLG) saw an increase of 50% in the inventories which reached VND4.89 trillion (US$21 million) at the end of the first quarter.
Surprisingly, inventories as per equity were high. Accordingly, the rate of inventories out of equity at Intresco (ITC) was about 79% with VND2.9 trillion (US$126 million) worth of unsold real estate, followed by Quoc Cuong Gia Lai JSC (QCG) with 69.4%, and Becamex Infrastructure Development Joint Stock Company (IJC) with 62.5%.
Sluggish construction was attributable to the high inventories, VnEconomy reported, adding that the legal loopholes have caused stagnant construction progress at a number of projects.
High unsold value coupled with high interest rates has put some property developers in difficulties, according to the economic newswire.
