HND Loses Appeal: Hai Phong Thermal Power to Pay VND 114.8B in Coal Dispute

Overview

Hai Phong Thermal Power JSC (HND), listed on UPCOM, disclosed that it lost its appeal in a coal supply contract dispute and must pay nearly VND 114.82 billion (about USD 4.6 million) to Dan Ka Minerals JSC, plus court fees. The ruling by the Hai Phong City People’s Court reverses a first-instance decision that had rejected the supplier’s claim, and arrives amid senior leadership turmoil at the utility.

Key Facts

• Appellate judgment No. 47/2026/KDTM-PT dated 29 September 2026, received by HND on 12 October 2026, from the Hai Phong City People’s Court.
• Total payment ordered: nearly VND 114.82 billion, of which VND 80.15 billion is the coal price differential and VND 34.65 billion is accrued interest.
• The price differential covers 150,498.99 tonnes of coal, out of more than 155,388 tonnes Dan Ka Minerals supplied in total.
• The dispute stems from contract No. 7217/HĐCC-NĐHP signed 9 December 2021 for 200,000 tonnes of imported coal, awarded to Dan Ka via tender.
• First-instance ruling No. 03/2026/KDTM-ST dated 11 June 2026 had rejected Dan Ka’s claim; the appeal court overturned it.
• HND also bears first-instance commercial court fees of more than VND 222.8 million and appellate fees of VND 2 million.
• Late execution of the judgment may trigger additional statutory interest.

What Happened

In 2021, Hai Phong Thermal Power ran a tender for 200,000 tonnes of imported coal for its power generation operations. Dan Ka Minerals won the tender and signed supply contract No. 7217/HĐCC-NĐHP on 9 December 2021. In 2022, world coal prices rose sharply, and the two sides fell into dispute over adjusting the payment unit price. Dan Ka sought an adjustment tracking market movements; HND declined to pay the full differential claimed.

Dan Ka ultimately supplied more than 155,388 tonnes, with nearly 150,499 tonnes forming the basis for the disputed price gap. The case moved through both court levels: in June 2026 the first-instance court rejected Dan Ka’s claim for the differential and interest, and Dan Ka appealed. On 29 September 2026, the appellate panel accepted the appellant’s arguments on both the coal price differential and late-payment interest of more than VND 34.65 billion, lifting HND’s total obligation to nearly VND 115 billion. The disclosure was made by HND as an unusual information announcement.

Market Context

HND closed at VND 8,900 on 19 October 2026 on UPCOM, the unlisted public company market. The stock trades at a low absolute price typical of small-cap thermal power names on UPCOM, where liquidity is thin and disclosure-driven moves can be sharp. The ruling adds a defined cash outflow to a utility already absorbing leadership changes, and it sits against a broader Vietnamese market backdrop in which coal-fired generators face input-cost volatility and scrutiny of contract risk management.

Strategic Significance

The judgment establishes that index-linked or market-adjusted coal pricing clauses in Vietnamese power-sector supply contracts can be enforced through the courts, even where a first-instance court found otherwise. For HND, the near VND 115 billion obligation is a direct hit to cash flow at a company whose earnings depend on the spread between regulated electricity tariffs and fuel costs; the interest component of VND 34.65 billion shows how costly prolonged litigation can become. The case also signals to other coal-fired generators that suppliers have a viable path to recover price differentials from the 2022 coal spike, a precedent with sector-wide contract-negotiation implications.

What to Watch

• HND’s next financial disclosure for the amount and timing of provisioning against the VND 114.82 billion judgment.
• Any further announcement on leadership changes following the reported arrest of Duong Son Ba and related senior personnel moves.
• Confirmation of payment execution or appeal to a higher instance, and any additional statutory interest accrual.
• Whether other coal suppliers to Vietnamese generators pursue similar price-differential claims from the 2022 market spike.
• HND’s H2 2026 results for the impact of the payment on liquidity and debt metrics.