At the meeting, Sonadezi Corporation’s leader reported on business activities in 11 months and estimated results for the whole year 2017. Accordingly, the consolidated revenue of the Corporation in 11 months arrived at over VND 3,378 billion, reaching 96% of the plan. In 2017, the Corporation’s consolidated revenue is expected to achieve over VND 3,773 billion, being 107% of the plan; the total budget contribution will be more than VND 778 billion, over 271% of the plan and the profit after tax in 2017 will come to nearly 523 billion VND, reaching 107%. The majority of the Corporation’s subsidiaries are operating effectively, meeting and exceeding the planned targets of revenue, profits and budget contribution, and income of employees in many subsidiaries standing at a fairly high level.

For Sonadezi parent company, it expects the revenue in 2017 to be about VND 376 billion; profit after tax to reach nearly VND 223 billion, 201% of the year plan and budget contribution to arrive in approximately VND 363 billion, reaching 725.9%. On November 20, 2017, SNZ stocks of Sonadezi Corporation were officially traded on Upcom.

In 2017, following the approved roadmap, Sonadezi divested all investment capital in 2 subsidiaries, namely HD Bank and Vinh Phu Waterway Transport JSC, as well as had only 10% left at Dong Nai Transportation Construction JSC.

At the meeting, Sonadezi Corporation’s leader noted that 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 was encountering obstacles. This is because a number of companies renting land in Bien Hoa 1 Industrial Park do not agree with the new much higher lease rate in comparison to the previous one. This was a big problem to Sonadezi Corporation because the Corporation already paid the State the land rent due but still got the amount back from companies. In addition, accounting of the paid land rental amount was also seen as a problem.

According to Sonadezi Corporation, there were 161 companies currently operating in Bien Hoa 1 Industrial Zone, of which, only 79 companies being Sonadezi’s customers. In the remaining 82 companies, there were 02 companies that operated as subcontractors, using the same factory with their employers who sublet Sonadezi’s industrial zone land; and 80 companies that rented offices, workshops and warehouses of the companies that sublet Sonadez’s industrial zone land. It meant, among 79 customers of Sonadezi, some companies leased part or the whole of their premises and factories to other parties. The Corporation recommended the Provincial Party Committee and the Provincial People’s Committee to approve for Corporation to terminate the land sublease agreements and recover land of companies using land for improper purposes.

In addition to the above issues, a number of Sonadezi’s subsidiaries for example Dong Nai Water Supply JSC, Sonadezi Environment JSC, Sonadezi Service JSC, etc. reported plenty of difficulties and obstacles in the current activities. A prominent problem is site clearance compensation in some projects namely the 110 KV power supply line for Giang Dien Industrial Zone, Nhon Trach water supply project (phase 1) and Thien Tan project (phase 2), Tam An 1 residential area… Moreover, environmental service suppliers are in trouble when settling revenues and expenses due to an unapproved rate. The application of adjusted policies in land management over different periods is also a problem in the implementation of the Quang Trung Waste Treatment Complex project.

At the meeting, Secretary of the Provincial Party Committee Mr. Nguyen Phu Cuong acknowledged and praised Sonadezi’s achievements in 2017. At the same time, the Secretary requested the Corporation to have reasonable strategies for State capital preservation as well as pay attention to the land use plan in the State capital divestment roadmap. Secretary of the Provincial Party Committee Nguyen Phu Cuong noted that the conversion of Bien Hoa 1 Industrial Park’s function should be done quickly, without delay and prolongation. Sonadezi therefore needed to focus on relocation for companies in Bien Hoa 1 Industrial Zone. Regarding the difficulties and obstacles of Sonadezi Corporation and its subsidiaries, the Secretary requested regulators to support the Corporation and soon issue a written advisory to the Provincial People’s Committee on sorting out companies’ difficulties out as well as facilitating their operations.

Here are some pictures from the meeting between the Secretary of the Provincial Party Committee Nguyen Phu Cuong, the delegation of the Provincial Standing Party Committee, the Provincial People’s Committee and Sonadezi Corporation