AAV Group Terminates Con Son Resort Project After 8 Years; H1 Loss Hits VND 14.9B

Overview

AAV Group (UPCOM: AAV) has terminated its Con Son Resort project in Hải Phòng after more than eight years of unresolved land clearance and conservation-zone conflicts. The decision, approved by the board of directors, removes a VND 550 billion planned investment from the company’s pipeline and comes alongside a first-half net loss of VND 14.9 billion. Auditors have flagged material uncertainty over the company’s ability to continue as a going concern.

Key Facts

• Board resolution terminates the Côn Sơn Resort project effective from the date of issuance.
• Project registered as Cụm du lịch biệt thự nhà vườn Côn Sơn - Kiếp Bạc, approved by Hải Dương provincial authorities in February 2018.
• Site area: 906,800 m² (over 90 hectares) with planned total investment of VND 550 billion.
• Approximately VND 5 billion spent to date, entirely on filing, investment certificate and survey costs.
• 68 of 73 land clearance files handed over for review; project still at environmental impact assessment stage.
• H1 2026 consolidated net loss: VND 14.9 billion, versus a profit of nearly VND 600 million in the same period last year.
• Auditors note short-term debt exceeds current assets by VND 204 billion and accumulated losses stand at VND 41.7 billion.

What Happened

The board of AAV Group passed a resolution to terminate the Côn Sơn Resort investment project, located in Trần Hưng Đạo Ward, Hải Phòng. According to the resolution, the project encountered objective difficulties during implementation: compensation and land clearance dragged on while determining land origin proved complex. A portion of the site overlapped with the Côn Sơn - Kiếp Bạc heritage conservation zone and its buffer area, affecting both progress and the ability to continue.

The project was originally approved by the Hải Dương provincial People’s Committee in February 2018 under the name Côn Sơn - Kiếp Bạc Villa Garden Tourism Cluster. It was planned as a resort villa development with a four-star hotel and golf practice facility on a site bordered on three sides by pine forest and Côn Sơn Lake, scheduled for 2018-2024. As of 30 June 2026, nearly VND 5 billion had been spent, all on documentation, investment certificate applications and surveying. The company’s semi-annual financial statements show the project remained at the environmental impact assessment and appraisal stage.

Market Context

AAV Group, formerly Việt Tiên Sơn Địa ốc, was established in Hải Dương on 12 April 2010 and operates primarily in real estate leasing. The stock trades on UPCOM and closed at VND 6,200 on 10 September 2026. The termination comes as the company’s two remaining major projects are the Yết Kiêu eastern residential area (VND 430 billion) and the Trần Hưng Đạo eastern residential area (VND 306 billion), which together account for the bulk of VND 741 billion in long-term work-in-progress costs at the parent company. The broader Vietnamese real estate sector continues to face slow land clearance and heritage-zone approval bottlenecks, particularly for projects overlapping protected areas.

Strategic Significance

For long-term investors, the termination removes a project that had been stalled for nearly a decade and consumed management attention without generating revenue. The more pressing issue is the auditor’s going-concern warning: short-term debt exceeding current assets by VND 204 billion and accumulated losses of VND 41.7 billion indicate the company’s balance sheet is under strain. The strategic question now is whether AAV can monetize its two remaining residential projects quickly enough to restore liquidity, or whether it will need to raise capital or divest assets. The Con Son exit simplifies the story but does not address the core solvency concern.

What to Watch

• H2 2026 financial statements for progress on the Yết Kiêu and Trần Hưng Đạo residential projects.
• Any disclosure on plans to address the VND 204 billion short-term debt gap, including asset sales or capital raises.
• Updates on land clearance and licensing for the two remaining projects.
• Auditor’s next review or annual audit opinion for changes to the going-concern qualification.
• UPCOM trading liquidity and price action around VND 6,200 as the market digests the loss.