Shares in Vietnam’s second-biggest real estate firm, No Va Land, extended falls on Wednesday to hit the lowest level since April, 2021, after industry sources said there had not yet been a breakthrough to ease a credit crunch in the sector.
Reuters reported on Monday No Va Land was firing staff and seeking urgent cash as it struggles to pay creditors in the latest sign of distress in the real estate sector.
At 0342 GMT, No Va Land shares were down 6.94 per cent with over 24 million shares being offered at a floor price, underperforming the benchmark stock index, which was up around 1 per cent.
The shares, which dropped for a seventh consecutive day, have lost nearly 47 per cent of their value since the beginning of the year.
An industry source said on Wednesday that the company’s proposal of using its shares as collateral had been rejected, while creditors were awaiting a bank evaluation of its assets before deciding whether they could be used for collateral.
No Va Land did not immediately comment on Wednesday but on Monday told state media it hoped the State Bank of Vietnam will work out measures to help real estate developers and investors to have access to credit.
The government on Tuesday hosted a meeting with a dozen of real estate developers in the south of the country to discuss obstacles companies are facing and potential solutions.
Two other industry sources told Reuters the outcome of the meeting was less supportive for the developers than expected as the government was not willing to intervene to help them.
Founded in 2007, No Va Land is active mostly in residential property and luxury resorts. It has a market capitalisation of $4.07 billion, behind Vingroup’s real estate unit, Vinhomes.
($1 = 24,850 dong)
(Editing by Ed Davies)
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