HDTC places all its employees on unpaid leave due to financial crunch

HDTC has recently issued document No.380/TB-HDTC/2023 announcing the temporary suspension of its operations.
The Housing Development and Trading Joint Stock Company (HDTC), headquartered in Ben Thanh Ward, District 1, Ho Chi Minh City

The Housing Development and Trading Joint Stock Company (HDTC), headquartered in Ben Thanh Ward, District 1, Ho Chi Minh City

The Housing Development and Trading Joint Stock Company (HDTC), headquartered in Ben Thanh Ward, District 1, Ho Chi Minh City, has recently issued document No.380/TB-HDTC/2023 announcing the temporary suspension of its operations. The document was signed by Mr. Dinh Chi Minh, Chairman of the Board of Directors cum CEO of HDTC.

Accordingly, due to the extremely challenging financial situation of the company at present, there is insufficient revenue to cover employee salaries. In response to the company's operational situation, the Board of Directors has collectively decided to reorganize the organizational structure, retaining only essential personnel to fortify the company in the current phase. Consequently, the Chairman of the Board of Directors cum CEO announces that all employees working at HDTC and its branches will be on temporary unpaid leave, starting from November 26, 2023, until further notice from the company.

In mid-October 2023, the Investment Management Customs Branch under the HCMC Customs Department temporarily halted customs clearance procedures for HDTC for one year due to outstanding domestic tax debts exceeding VND100 billion.

As per the Investment Management Customs Branch, the company situated at Bui Thi Xuan Street, Ben Thanh Ward, District 1, has accumulated tax arrears surpassing 90 days from the stipulated payment deadline. The enforcement decision is executed following the recommendation from the HCMC Tax Department, valid for one year starting from October 10, 2023, and will only cease its effect upon the complete settlement of the outstanding tax amount into the State budget.

Established as a State-owned enterprise with 100 percent government capital in 1984 under the supervision of Saigon Real Estate Corporation (RESCO), HDTC underwent official privatization in 2016. Possessing several substantial projects, HDTC's business results post-privatization had consistently sustained an average annual revenue of VND900 billion-VND1 trillion, with a post-tax profit fluctuating around VND140 billion per year during the period from 2019 to 2022.

Despite managing numerous significant projects, in fact, many of HDTC's projects have encountered delays in their execution for several years.

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