Sorting out difficulties and creating fairness for businesses.

This was the direction of the Chairman of Dong Nai Provincial People’s Committee Mr. Cao Tien Dung in the meeting with Sonadezi Corporation and its subsidiaries on October 17.

At the meeting, Mr. Cao Tien Dung – Chairman of Dong Nai Provincial People’s Committee and leaders of departments and agencies listened to Sonadezi Corporation’s report on the production and business performance and a number of difficulties and obstacles in the operation process.

As reported by Sonadezi Corporation, the business results in 2019 are expected to exceed all planned targets. Specifically, the Corporation’s consolidated revenue is about VND 4,747 billion; profit after tax is approx. VND 891 billion; budget contribution is VND 505 billion and the return on equity is 13.09%.

The Parent company, in particular, is estimated to earn over VND 523 billion in revenue, VND 357 billion in profit after tax; contribute VND 61.2 billion to the budget; and get return on equity ratio of 9.03%.

According to Sonadezi Corporation’s leaders, currently, the investment, implementation and operation of many projects of Sonadezi as well as its subsidiaries still face many difficulties. In particular, the collection of land rent due in Bien Hoa Industrial Zone 1 determined by Decree 142/2005/NĐ-CP and Decree 135/2016/NĐ-CP for the period from January 1, 2006 to January 31, 2016 and the re-signing of the land lease agreement with a new lease rate from February 1, 2016 onwards are encountering obstacles. This is because a number of businesses renting land in Bien Hoa Industrial Zone 1 do not agree with the new much higher lease rate in comparison to the previous one.

In addition, state capital divestment in the Corporation is also facing trouble in the valuation process.

Sonadezi’s leaders emphasized that the current biggest difficulty of Sonadezi is finding new projects, while the company have sufficient financial resources and investment experience.

At the meeting, Sonadezi’s subsidiaries also shared a number of obstacles and difficulties in the current activities, namely: the implementation of the Residential and tourism area along the Dong Nai River; the compensation work for the site clearance to construct 110 KV power supply line for Giang Dien Industrial Zone; compensation unit price in Long Phuoc 1 Industrial Cluster; the acceptance, settlement of water supply system projects using ODA capital; collection of land use levy and fines for late payment at Vinh Tan solid waste treatment complex and non-hazardous industrial and domestic solid waste treatment complex of Trang Dai ward …

At the meeting, PPC Chairman Cao Tien Dung acknowledged and praised Sonadezi’s business performance. For each difficulties and problems of Sonadezi Corporation and its subsidiaries, the Chairman directed the relevant departments and agencies to give detailed, specific answers in the meeting and propose solutions to urgently sort out problems for the Company. At the same time, the Chairman of the PPC requested departments and agencies to focus on coordinating and supporting Sonadezi in order to early address the difficulties, problems and create fairness, motivation for the Company to promote and develop.

“In the coming time, Dong Nai will announce the overall planning of socio-economic development of the province. In particular, the industrial development will be selective, focusing on developing the field of air import and export in the areas surrounding Long Thanh International Airport, focusing on logistics for the industrial development, etc. Sonadezi Corporation is required to study the planning in order to propose projects suitable to their capacity and industries to have more investment opportunities for the new projects in the future. Thereby, the sustainable growth of the Corporation is continued to maintain and contribute to the socio-economic development of the province”, noted Mr. Cao Tien Dung.