HOA BINH CONSTRUCTION GROUP JOINT STOCK COMPANY

HOA BINH CONSTRUCTION GROUP JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN TẬP ĐOÀN XÂY DỰNG HÒA BÌNH), business registration number 0302158498, was once celebrated as a cornerstone of Vietnam’s modern construction boom. With over 24 years of experience since its establishment on December 1, 2000, the company, listed on UpCOM under the stock symbol HBC, gained a reputation for handling some of the country’s largest and most prestigious infrastructure and commercial projects.

Headquartered at Pax Sky Building in District 3, Ho Chi Minh City, and with regional offices in Hanoi and Da Nang, the group operates across a wide range of construction sectors—from high-rise buildings and industrial complexes to commercial centers and hospitality developments. With over 1,500 employees, and a rich portfolio in both private and public infrastructure, HBC was once an undisputed leader in Vietnam’s civil engineering landscape.

However, the company’s most recent financial disclosures reveal a story of sharp decline and mounting concern. In 2023, total sales fell by nearly 47%, from USD 581.28 million to USD 309.65 million. This drastic drop was accompanied by a continued net loss of USD 45.82 million, though it was an improvement over the catastrophic USD 107 million loss the previous year. More alarming is the collapse in owner’s equity, plunging from USD 48.94 million in 2022 to just USD 3.84 million in 2023, a decline of over 92%. The firm’s net worth now stands at only USD 1.06 million—an astonishing low for a once-mighty public corporation.

Total assets also shrank by 16.73% to USD 626.51 million, while working capital turned negative at USD -10.43 million, suggesting a liquidity crunch that raises questions about the company’s ability to meet short-term obligations. These figures, when taken together, paint a picture of a firm teetering on the edge of financial distress, despite still being operational and actively bidding for contracts.

Under the leadership of Chairman Le Viet Hai and General Director Le Van Nam, HBC remains publicly held. Its shareholder base includes Hyundai Elevator Co., Ltd. (South Korea) with 8.08%, and Mr. Hai himself with 13.53%. However, over 78% of the shares are in the hands of dispersed "other shareholders," making coordinated strategic recovery efforts more complex.

In light of this situation, business partners, investors, and government agencies considering collaboration with HBC must proceed with caution. As emphasized by VANGUARD BUSINESS INFORMATION LLC (VBI)—a trusted provider of company verification, financial intelligence, and credit risk analysis—this case illustrates the urgent need for transparent due diligence before entering into any contractual or financial commitments.

VBI's services help stakeholders not only identify red flags like shrinking equity and negative working capital, but also provide deeper insights into ownership structures, management accountability, and historical performance. For publicly listed companies like HBC, where reputation can outpace financial reality, VBI ensures clients see the full picture.

In conclusion, HOA BINH CONSTRUCTION GROUP JOINT STOCK COMPANY remains a symbol of past excellence and ambitious expansion, but also stands today as a sobering reminder of how quickly financial mismanagement or market overexposure can erode even the strongest brands. The road to recovery is still open—but it will require transparency, restructuring, and trust-building, backed by credible data and rigorous financial governance.