Thuduc House (TDH) Tax Enforcement Lifted: Asset Transfer Restrictions Removed

Overview

Thuduc House (TDH) has been relieved from administrative tax enforcement measures after the Ho Chi Minh City Tax Department issued a notice to implement a final appellate court ruling. The termination of asset transfer and mortgage restrictions removes a major obstacle that had hampered the company’s operations for years, potentially unlocking value for the real estate developer.

Key Facts

• On April 21, 2025, TDH received a notice from the Ho Chi Minh City Tax Department regarding the implementation of appellate administrative judgment No. 332/2025/HC-PT dated September 23, 2025, issued by the High People’s Court in Ho Chi Minh City.
• The tax authority has terminated all administrative enforcement measures against TDH, including suspension of customs procedures, invoice usage, and bank account freezes.
• The enforcement measures were related to overdue tax debts of over VND 365 billion, stemming from a criminal smuggling case involving electronic components between 2017 and 2019.
• The appellate judgment from May 3, 2024, required TDH to repay over VND 365 billion in VAT refunds received from February 2018 to June 2019 linked to the smuggling activities.
• For fiscal year 2025, TDH reported consolidated after-tax profit of nearly VND 110 billion, exceeding its plan.
• TDH will hold its annual general meeting on April 24, 2026.

What Happened

Thuduc House (TDH) announced on April 21 that it had received a notice from the Ho Chi Minh City Tax Department formally implementing an appellate administrative judgment. The notice confirms the termination of all administrative enforcement measures previously imposed on the company, including the suspension of customs clearance for imports/exports, restriction on invoice usage, and freezing of bank accounts. Critically, the notice also lifts restrictions on asset transfers and mortgages, which had effectively paralyzed TDH’s ability to conduct normal business operations.

The enforcement measures originated from a criminal case involving the smuggling of electronic components during 2017-2019, for which TDH was ordered to repay over VND 365 billion in VAT refunds. The appellate judgment from May 2024 had already addressed the tax liability, but the administrative enforcement remained in place until the latest notice.

Market Context

TDH is listed on the Ho Chi Minh Stock Exchange (HOSE) and has been under significant pressure due to the prolonged legal and tax issues. The stock has been thinly traded and faced uncertainty regarding its ability to conduct asset transactions. The lifting of enforcement measures is a major positive catalyst, potentially allowing the company to resume project development and asset sales. The broader real estate sector in Vietnam has been recovering, with improved liquidity and policy support, which could further benefit TDH if it can now execute its business plan.

Strategic Significance

The removal of asset transfer and mortgage restrictions is a critical turning point for TDH. It enables the company to unlock the value of its real estate holdings, which had been effectively frozen. This could allow TDH to raise capital through asset sales or secure financing using property as collateral, addressing its liquidity constraints. The company’s ability to generate nearly VND 110 billion in net profit in FY2025 despite the restrictions suggests underlying operational resilience. With the legal overhang lifted, TDH may be able to refocus on its core real estate development business and potentially pursue new projects.

What to Watch

• Details of the company’s plan to utilize the newly freed assets, including any potential asset sales or project launches.
• The outcome of the upcoming annual general meeting on April 24, 2026, for strategic guidance and dividend policy.
• Any further updates on the repayment of the VND 365 billion tax liability and its impact on cash flow.
• Trading volume and price action of TDH shares as the market digests the news.
• Potential interest from foreign investors, as the removal of restrictions may improve corporate governance perception.