HOI AN SOUTH DEVELOPMENT LTD

HOI AN SOUTH DEVELOPMENT LTD (CÔNG TY TNHH PHÁT TRIỂN NAM HỘI AN), widely recognized under its short name HASD, is one of Vietnam’s most ambitious foreign-invested integrated resort projects. Officially registered on December 10, 2010, under Business ID 4000789705, the company is headquartered in Tay Son Tay Hamlet, Duy Hai Commune, Duy Xuyen District, Quang Nam Province, and operates under the jurisdiction of the Quang Nam Department of Planning and Investment.

With a charter and paid-up capital of USD 262.47 million and full ownership by HOI AN SOUTH INVESTMENTS PTE. LTD. (Singapore), the enterprise boasts a grand vision—a sprawling destination that includes a luxury resort complex, casino, golf course, theme park, and associated hospitality and real estate activities, all bundled under the “Hoiana” brand (https://www.hoiana.com).

The project employs 2,482 workers, making it a significant local employer. Key management personnel include General Director Mr. Nguyen Vinh Tran (Vietnamese) and CEO Mr. Teo Aung Peng (Singaporean), who lead operations in both leisure services and real estate transactions.

Financial Overview: Rapid Sales Growth, Soaring Losses

The company’s financials reveal a high-stakes game of scale versus solvency. In 2023, revenue skyrocketed to USD 90.9 million, a 155.63% increase over 2022 and nearly eight times the 2021 figure. This steep rise is likely attributable to the ramp-up in casino and resort operations post-COVID and a surge in domestic and regional tourism.

However, net profit remains deeply negative at USD -130.77 million, and the trend is worsening. The company has posted three consecutive years of heavy losses, totaling over USD 336 million in cumulative losses from 2021 to 2023. Losses in 2023 alone represented a 13.67% decline from the previous year, despite the revenue boom—suggesting structural inefficiencies or massive cost burdens, potentially linked to depreciation, financing, or marketing overheads.

Capital Structure: A Red Zone of Negative Equity

Of greatest concern is the company’s owner’s equity, which stood at negative USD 200.87 million as of the end of 2023—a 59.3% deterioration from 2022. With total assets at USD 1.04 billion, this negative equity places HOI AN SOUTH DEVELOPMENT firmly in technically insolvent territory, where liabilities exceed total assets. The net worth also declined by 58.72%, matching this equity erosion.

Moreover, the company’s working capital is severely negative at -USD 368.73 million, which indicates an urgent liquidity risk. Without continued external financing or cash injections from the parent company, the business may face significant constraints in servicing short-term liabilities or sustaining operations at scale.

Final Assessment

From a financial risk management perspective, HOI AN SOUTH DEVELOPMENT LTD (CÔNG TY TNHH PHÁT TRIỂN NAM HỘI AN) is a high-risk, high-potential FDI project. The company is clearly investing in long-term infrastructure with tourism and entertainment appeal, and its revenue trajectory is strong. However, the scale of accumulated losses, severely negative equity, and depleted working capital signal serious financial instability.

The viability of the project in the long term will hinge on three critical factors:

1. The parent company’s willingness and capacity to provide sustained capital support.

2. The ability to drastically improve profitability through operational streamlining.

3. External factors such as regulatory clarity on casino operations and the resilience of Vietnam’s tourism recovery.

Without a substantial course correction, the project may remain financially underwater—even as its physical footprint continues to expand along Vietnam’s central coast.