Brian Jeffrey
Nguyen Quoc Cuong led the second annual shareholders’ meeting of Quoc Cuong Gia Lai JSC (QCG) on July 30, stepping in as CEO after his mother’s arrest regarding a project transfer in Ho Chi Minh City on July 19. Cuong aims to tackle challenges like the Phuoc Kien project and other real estate issues, including repaying VND 2,880 billion to Van Thinh Phat. However, QCG faces financial strain with little cash on hand and debts exceeding VND 5,000 billion, mainly from financial leases and loans.
The future of QCG projects is uncertain post the arrest of Nguyen Thi Nhu Loan, but there has been a resurgence in QCG’s stock despite the turmoil.
Hoang Anh Gia Lai Group’s Financial Strategy
Under Chairman Doan Nguyen Duc, Hoang Anh Gia Lai Group (HAGL) sold its agricultural segment to Thaco, overseen by billionaire Tran Ba Duong, to ease financial burdens. Although this move generated funds for debt repayment and attracted investments from LPBank and Thaiholdings, HAGL still grapples with substantial debt, including delayed payments exceeding VND 4,364 billion as of June 30.
Despite HAGL Agrico’s delisting due to continued losses, new shareholders brought hope for HAGL’s revival. The company’s stock showed promise with a doubled value but faced selling pressure, lowering share prices to VND 12,300.
The Fall of Duc Long Gia Lai
Once thriving, Duc Long Gia Lai (DLG), known for wood processing in the highlands, has experienced setbacks. With expansions, including the acquisition of Mass Noble in 2015, DLG now faces significant losses and considers selling its Chinese factory. The company’s stock plummeted, reflecting financial struggles with accumulated losses of VND 2,637 billion and debts surpassing VND 2,722 billion by March 31, 2024.
DLG’s financial woes worsened with creditors like Lilama 45.3 seeking bankruptcy over minor debts, adding to the company’s financial stress. To cope, DLG decided to sell its stake in Mass Noble Investments Limited, a revenue source since 2016.
US$1 = VND25,200
Manh Ha
