Dang Thanh Tam not as rich as people think?

VietNamNet Bridge – Dang Thanh Tam, who was praised as one of the biggest Vietnamese tycoons with his huge investment projects, turns out to be not as rich as previous thought.

Dang Thanh Tam has been known in Vietnam as the richest stock millionaire in 2007, the big investor in many conglomerates and the influential businessman. He is now President of the Saigon Investment Group (SGI), President of the Kinh Bac Urban Development Company and the Tan Tao Industry and Investment Company.

Tam has also been famous for his saying: “Neu chung toi chet, chac cha ai song duoc” (if we die, no one can live).

Tam has become the “hot face” on local newspapers these days after he returned to the ongoing National Assembly’s session. Prior to that, Tam reported asked for the permission to be absent at the session. However, he later unexpectedly turned up again.

Kinh Bac suffer dramatic losses

KBC has released the Q3 finance report, showing the big losses it has suffered. The company’s net turnover in the third quarter of the year was 13.8 billion dong, a sharp fall of 66 percent in comparison with the same period of the last year.

The figures were 188.4 billion dong and 53 percent, respectively, for the business result in the first nine months of the year.

Especially, the cost prices of the goods sold in the third quarter was 6.98 billion dong only, down by 53 percent from the 14.87 billion dong last year

KBC reportedly incurred the loss of 138.46 billion dong in the third quarter of the year alone, which was eight times higher than that of the same period of the last year. The accumulative loss in the first nine months of the year reached 262.9 billion dong. Meanwhile, it made a profit of 21.59 billion dong last year.

KBC is now a big debtor. By September 30, 2012, KBC had owed 320 billion dong to Western Bank. It is also the debtor of Vietinbank and Navibank. As such, Tam’s company is still owing 837.15 billion dong to different commercial banks.

Huge investment capital? These are just “virtual” figures

SGI Group of Dang Thanh Tam has reportedly invested in a lot of projects capitalized at 16 billion dollars in total, a huge capital.

However, some experts say this is just an “artificial” figure, adding that to date; Tam remains the only person announcing the figure, while it has not been verified.

The experts, citing some investment projects registered by the big guy, said that most of the SGI’s implemented projects have modest capital. The projects have been left idle just a short time after they were kicked off. The experts have doubts that the investor only tried to register projects and then transfer the projects to others for profits.

The projects that remain “immovable”

The Tan Tao Group registered three big investment projects in Quang Ngai province in 2008 with the capital of 50 million dollars and 1485 billion dong.

However, the projects remain immovable so far.

Tan Tao plans to develop a complex of shopping mall, service center and film studio named Vina Universal Paradise in Son Tinh district. The project, expected to cover an area of 60 hectares, had a huge registered capital of 949.6 billion dong.

However, the capital remains on paper so far: since the construction started in 2009, the project has been left idle. It is highly possible that the project would not be implemented as previously committed by Dang Thanh Tam.

The other two projects on the film studio and shopping mall are facing the same situation, because of the limited financial capability of the investor as affirmed by Le Hong Ha, Deputy Chair of the Quang Ngai provincial Board of Management of Industrial Zones.

Kien Thuc