HBC Associate Thanh Ngan Loses 9,300 m2 HCMC Land Over Unpaid Lease Fees

Overview

Hồ Chí Minh City’s People’s Committee has notified the reclamation of 9,298.9 m2 of land at 127 An Dương Vương, phường Bình Phú, from Công ty CP Bất động sản Thành Ngân because the company did not fully meet its land-lease financial obligations to the state. HBC holds 28.31% of Thành Ngân and reports it as an associate company, making the loss of the site a direct portfolio event for the UPCOM-listed builder.

Key Facts

• Total land area subject to reclamation: 9,298.9 m2 at 127 An Dương Vương, phường Bình Phú, Hồ Chí Minh City.
• The area is split into three parcels: Khu I at 6,436 m2 (reserved education land), Khu III at 1,452.2 m2 (planned road), and Khu IV at 1,410.7 m2 (An Dương Vương road right-of-way).
• The city cites failure to fulfil land-lease payment obligations; tax authorities had already applied enforcement measures that the company did not comply with.
• Thành Ngân has 15 days from receipt of the notice to coordinate with the Department of Agriculture and Environment and phường Bình Phú authorities to verify the site and any attached assets.
• Thành Ngân was established in July 2016 and is headquartered at 56 Hồ Tùng Mậu, phường Sài Gòn, Hồ Chí Minh City.
• Its legal representative changed in August 2026 from Mai Hữu Thung to Trịnh Minh Tân (born 1977); Mai Hữu Thung was previously nominated to HBC’s board for the 2022-2024 term.
• HBC’s consolidated financial statements for the first six months of 2026 record Thành Ngân as an associate with a 28.31% ownership stake.

What Happened

According to a notice from the Hồ Chí Minh City People’s Committee, Thành Ngân Real Estate used the land at 127 An Dương Vương without fully discharging its land-lease obligations to the state. The tax authority had applied coercive enforcement measures, which the company did not comply with, placing the case in the category of state land recovery for violations of land law.

The city has assigned the Department of Agriculture and Environment to work with the city tax department and phường Bình Phú authorities to complete the file, verify the area, boundaries and current use of the land, and advise the committee on issuing a formal recovery decision. Within 15 days of receiving the notice, Thành Ngân must coordinate on-site verification, provide records and complete related procedures; after that window, authorities will proceed with the statutory recovery sequence. The notice does not state the outstanding lease amount, the value of any assets on the land, or the compensation treatment.

Market Context

HBC trades on UPCOM and closed at VND 3,000 on 27 October 2026, a price level that leaves little room for negative surprises in associate valuations. The reclamation sits at the intersection of two pressured sectors: residential real estate, where land-use financial obligations have become a common enforcement trigger in Hồ Chí Minh City, and construction, where HBC’s balance sheet remains sensitive to legacy receivables and equity-method investments. The affected parcels are largely earmarked for education reserve, a planned road and the An Dương Vương right-of-way, which limits their direct commercial redevelopment value but does not eliminate the book-value question.

Strategic Significance

The core issue for long-term holders is not the land itself but what it reveals about HBC’s associate portfolio and the quality of its non-core equity stakes. A 28.31% holding carried under the equity method can absorb impairments quietly, and a state-forced recovery triggered by unpaid lease obligations suggests governance and liquidity strain at the associate level. Because the parcels are mostly planning-reserve and road-corridor land, the practical development upside was already constrained; the more relevant question is whether HBC’s interim 2026 accounts carry the stake at a value that will need revisiting, and whether similar obligations exist at other associates.

What to Watch

• HBC’s disclosure on the carrying value of its Thành Ngân stake and whether an impairment is recorded in Q3 or full-year 2026 results.
• The formal land recovery decision from the Hồ Chí Minh City People’s Committee after the 15-day verification window.
• Any statement from Thành Ngân on settling arrears with the tax authority before the recovery procedure completes.
• Further changes to Thành Ngân’s legal representation or shareholder structure following the August 2026 handover.
• HBC trading liquidity and price reaction on UPCOM once the associate-level impact is quantified.