The Vietnamese real estate market has recently presented a complex situation, with some companies beginning to distribute high dividends while others are still struggling with capital pressures. Since the second quarter of 2024, several real estate companies have decided to distribute dividends for 2023 to investors in the form of stocks and cash.
In terms of dividend payout rates, some companies have shown outstanding performance. For instance, Machin01 Equipment Joint Stock Company (stock code MA1) has a payout rate as high as 120%, with 30% in cash and 90% in stocks. Saigon Investment Corporation (SIP) has a payout rate of 31%, including 16% cash and 15% stocks. Other companies such as Nam Từ Liêm Urban Development Joint Stock Company (NTL), Phát Đạt Real Estate Development Company (PDR), and Sonadezi Long Thành Company (SZL) have payout rates of 25%, 20%, and 20% respectively. Several other companies have payout rates between 5% and 15%.
Financial banking expert Nguyễn Chí Hiếu points out that the phenomenon of multiple real estate companies simultaneously distributing dividends reflects the positive recovery of the real estate market. However, he also cautions that these dividends mainly come from undistributed profits of previous years and may not accurately reflect the current market situation. Hiếu also suggests that some companies may be distributing dividends to attract investors’ attention while the market still faces many difficulties.
In stark contrast to companies distributing high dividends, many real estate enterprises still face severe financial difficulties. These challenges are primarily reflected in capital turnover, interest payments, and fund recovery. For example, Nam Land Company Limited, due to a series of unfavorable transactions, is unable to arrange finances and owes up to 900 billion VND in dividends. Another case is Saigon Thuong Tin Real Estate Joint Stock Company (SCR), which, despite having total assets exceeding 10.6 trillion VND, has not distributed dividends for two consecutive years in 2022 and 2023.
More concerning is that some real estate companies’ stocks face trading restrictions on the stock exchange. These companies include Sông Hồng Construction Joint Stock Company (ICG), IDJ Vietnam Investment Joint Stock Company (IDJ), Investment and Construction Joint Stock Company No 18 (L18), Danh Khôi Group Joint Stock Company (NRC), Song Da No. 6 Joint Stock Company (SDC), and Song Da Urban & Industrial Zone Investment and Construction Joint Stock Company (SDU). These companies have received warnings, controls, and trading restrictions due to negative after-tax profits in 2023.
Nevertheless, there are still some positive signs in the real estate industry. According to statistics from the Ministry of Construction, in the first eight months of 2024, real estate enterprises issued nearly 46.1 trillion VND in bonds, accounting for 21.7% of the total bond issuance nationwide. This indicates that despite experiencing an investor confidence crisis, the corporate bond issuance channel remains active.
Hoàng Hải, Director of the Housing and Real Estate Market Management Department at the Ministry of Construction, states that signs of bond issuance by some real estate enterprises have recovered and are expected to become more stable in the future. However, he also points out that the pressure of maturing bonds remains a significant challenge for real estate enterprises. Real estate companies need to rebuild investor confidence through stable and healthy development. To learn about the latest trends and investment opportunities in the Vietnamese real estate market, feel free to add Jaycy. Our professional team provides expert advice to help you make informed decisions and seize opportunities in the Vietnamese market!
Key Points:
- Some Vietnamese real estate companies have started distributing high dividends, including both cash and stock forms.
- Some companies have dividend payout rates as high as 120%, reflecting a possible market recovery.
- Many real estate enterprises still face severe capital pressure and debt issues.
- Some companies face stock trading restrictions due to financial problems.
- Real estate enterprise bond issuance shows signs of recovery, but pressure from maturing bonds remains.
- Industry challenges include capital turnover, interest payments, and rebuilding investor confidence.
