Auditor PwC raises concerns over Vietnamese property developer No Va Land - CNA

HANOI : Auditor PricewaterhouseCoopers (PwC) on Tuesday cast doubt on the financial viability of one of Vietnam's top listed property developers, No Va Land, which faces large bond paybacks this year amid difficult market conditions.

The company is among the hardest-hit by widespread turmoil in Vietnam's real estate sector, which has been struggling for months because of a surplus of high-end property, high debt, stricter rules on bond issuance and refinancing, and arrests of high-profile business executives.

No Va Land, which has 34 active bonds maturing this year worth roughly 16 trillion dong ($683.88 million) according to Refinitiv data, said in its financial statements released on Tuesday that it had "enough resources to meet due obligations in the next 12 months".

PwC approved the financial statements but expressed "significant doubt about (No Va Land's) ability to operate continuously".

"No Va Land's businesses were significantly affected by the real estate market and the corporate bond liquidity," the auditor said in a report.

The company recorded revenues of 11.15 trillion dong ($474.47 million) and a net profit of 2.181 trillion dong ($92.81 million) for 2022, down 26 per cent and 37 per cent respectively from the previous year.

In response to the auditor's concerns, No Va Land said in a statement to the securities commission on Tuesday the group faced obstacles but was able to meet its debt obligations, thanks to the government's support.

Vietnam last month softened rules on bond paybacks and access to credit for property developers.

The company, one of the biggest issuers of corporate bonds among Vietnam's property firms last year, has said it is in talks with bondholders to reschedule payments or swap bonds for real estate products owned or developed by No Va Land.

($1 = 23,500.0000 dong)

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