Vietnamese Property Developer Novaland Forecasts 90% Profit Decline, Marking 8-Year Low
Vietnamese property developer Novaland has announced that it expects a 90% decline in profits this year to VND214 billion ($9 million), the lowest since 2015. The company plans to target revenues of VND9.531 trillion, a 15% decline, and will not pay any dividends for last year and this year.
Despite having undistributed profits of around VND13 trillion, PwC Vietnam, Novaland’s auditor, has expressed doubts about the company’s ability to remain a going concern. However, Novaland’s management has claimed it has adequate working capital to meet all its obligations in the next 12 months.
The company’s chairman expects a recovery in the third quarter of this year due to its restructuring in late 2022 and the government’s measures to eliminate legal obstacles faced by businesses, particularly in the property sector.