Brian Jeffrey
Da Nang IT Park was a grand project modeled after Silicon Valley in the US, aimed to be a hub of international IT excellence in Da Nang.
It was developed with an investment exceeding VND2 trillion by Trung Nam EMS JSC.
The park, spanning 341 hectares in Hoa Lien commune, Hoa Vang district, was envisioned as a leading IT community in Asia, catering to 25,000 individuals, including top-notch specialists, engineers, and workers.
Originally planned as a satellite town in northwestern Da Nang City, it was to house around 100,000 residents.
However, the project has not progressed as anticipated and remains stagnant. Sections like the specialist villas and ecological park within Da Nang IT Park have been abandoned.
Heading the project is DITP (Da Nang IT Park Development JSC), linked to Trung Nam Group, a conglomerate established and operated by siblings Nguyen Tam Tien and Nguyen Tam Thinh. Thinh currently serves as the group’s president, with Tien as the CEO.
In a recent bond issuance statement, DITP shared an email address closely associated with Trung Nam Group’s website.
Trung Nam Group also presents itself as an investor in Da Nang IT Park on its official website.
On July 22, DITP’s legal representative Nguyen Tam Tien announced the release of VND500 billion worth of bonds, maturing in 30 months with a zero percent interest rate, set to mature on January 16, 2027.
Established in 2004, Trung Nam Group operates primarily in energy, infrastructure, construction, and the electronic information industry.
Initially focusing on infrastructure, the group later diversified into real estate, hydro, and recently, renewable energy sectors.
The group has undertaken wind and solar power projects, including Trung Nam Thuan Nam solar power, Ea Nam wind power, and Trung Nam – Tra Vinh wind power.
In the past decade, Trung Nam Group has experienced significant growth, with total assets now exceeding billions of dollars.
By the end of 2022, the group’s assets totaled VND96 trillion or $3.8 billion, which is 50% more than FPT Group’s assets in the second quarter of 2024 and 1.8 times higher than Vinamilk’s assets.
Trung Nam Group’s equity stands at VND27.9 trillion ($1.1 billion). The recent boost in growth is credited to the group’s emphasis on large-scale renewables that demand substantial capital for development.
As of October 2021, the group contributed 1.63GW of power to the national grid, surpassing other private enterprises in this sector.
The group oversees nine power projects with substantial investment, with Trung Nam Thuan Nam and Ea Nam being the largest projects delivering 1.2 and 1.1 billion kwh per year respectively.
Trung Nam Group has a high debt load due to the extensive capital requirements of its power projects and frequently resorts to bond issuance for funding.
By the close of 2022, the group’s liabilities were at VND68.1 trillion ($2.7 billion), with bond debts amounting to VND24.27 trillion.
In the last two years, Trung Nam has requested multiple deadline extensions for bonds tied to renewable projects.
In a disturbing turn of events, Nguyen Tam Thinh requested a temporary halt due to challenges in fulfilling tax obligations. Subsequently, the Khanh Hoa Customs Agency urged the Immigration Department to lift the temporary suspension.
Trung Nam Thuan Nam Solar Power Co Ltd, a subsidiary of Trung Nam Group, faced urgent issues due to potential disruptions in the 500 KV Thuan Nam transmission line. At the time, the enterprise was in a situation where it hadn’t finalized a power sale agreement with EVN (Electricity of Vietnam) while daily interest payments were due on bank loans.
In 2022, Trung Nam Thuan Nam saw an 80% drop in post-tax profits compared to the previous year, settling at VND81 billion.
