TET Halts 70-Year Garment Line to Build Pristie Lac Trung Tower

Overview

Pristie Real Estate (TET, formerly Textaco) has approved the termination of garment production at 79 Lac Trung, Hà Nội, to make way for the Pristie Lac Trung premium residential complex. The HNX-listed company is converting its legacy textile land bank into real estate, with total project investment of VND 3,048 billion and a VND 1,130 billion private placement to fund it.

Key Facts

• TET’s board approved ending garment production at 79 Lac Trung, Vĩnh Tuy ward, Hà Nội, with full employee entitlements due by 30 September 2026.
• Pristie Lac Trung comprises one 26-storey tower on a podium plus 3 basement levels, with 651 apartments and 3,682 sqm of commercial space.
• Total project investment is VND 3,048 billion, split 20% equity from the share issue and 80% debt and other mobilised capital.
• The 12,423 sqm site at 79 Lac Trung is leased from the State under a 30-year contract running from 2003 to 2033.
• A private placement of 56.5 million shares at VND 20,000 each raises VND 1,130 billion, lifting charter capital from VND 57 billion to VND 622 billion.
• Proceeds are allocated VND 608 billion to Pristie Lac Trung and VND 522 billion to the Đức Giang Residences project.
• The 2026 AGM also approved halting operations at 26 ngõ 53 Đức Giang from 30 June 2026 for the Đức Giang Residences complex.

What Happened

According to a board resolution, Pristie Real Estate will stop garment manufacturing at 79 Lac Trung and hand the site to the Pristie Lac Trung project. The general director is tasked with settling all employee entitlements under law through 30 September 2026 and liquidating purchase and supply contracts tied to the garment workshop. Machinery and equipment at the factory will be inventoried, sealed, then relocated or disposed of.

The company’s history runs back to 27 May 1957, when it was established as the Bông vải sợi corporation under the Ministry of Trade, becoming Công ty Vải sợi may mặc Miền Bắc in 1995, a joint-stock company in July 2005 and an HNX listing in April 2010. A high-rise on the Lac Trung factory land was first mooted nearly a decade ago, when the board approved the 24-storey Red River View project in November 2016 with VND 1,300 billion of planned investment for 2017-2020. The company renamed itself Bất động sản Pristie on 16 July 2026 and formally ends garment production in September 2026.

Market Context

TET trades on the HNX and closed at VND 50,000 on 8 September 2026. The stock sits at the intersection of two domestic themes: the long-running relocation of inner-Hà Nội industrial land into housing, and a Vietnamese residential market where premium launches in established districts continue to draw end-user demand. The company’s shift also reflects a textile sector under persistent margin pressure from imported fabric competition and rising labour costs, pushing legacy landholders toward property development.

Strategic Significance

The investment case now rests on execution rather than manufacturing. TET is monetising a State-leased site with a 2033 lease expiry, which caps the development window and makes permitting and construction timelines the key variable. The capital structure is aggressive relative to the company’s size: charter capital rises roughly elevenfold to VND 622 billion, but 80% of project funding is debt and mobilisation, so interest costs and presale absorption will determine returns. The dual-project pipeline at Lac Trung and Đức Giang gives TET scale it never had in garments, but also concentrates risk in a single property cycle.

What to Watch

• Progress on the 79 Lac Trung land-lease terms and any extension beyond the 2033 expiry.
• Completion and disbursement of the 56.5 million share private placement at VND 20,000.
• Construction permit and launch timing for the 651-unit Pristie Lac Trung tower.
• Employee settlement completion by 30 September 2026 and any residual textile liabilities.
• Progress at Đức Giang Residences, which receives VND 522 billion of the proceeds.