Company selling vacation ownership model loses more than 800 billion VND

Thien Duong Bay, a pioneer in providing vacation ownership models in Vietnam, lost more than VND830 billion last year.

This information was announced by Thien Duong Bay Tourist Area Company Limited in a report sent to the Hanoi Stock Exchange (HNX) and bond investors. Thus, on average, the company lost more than 2.2 billion VND per day. In 2021, the company also reported a loss of more than 700 billion VND.

By the end of last year, Thien Duong Bay's equity was negative about VND1,575 billion, an increase of more than VND900 billion compared to 2021. The company owed about VND5,780 billion, an increase of several tens of billions compared to a year earlier. However, the company has no outstanding bonds.

Currently, Vinh Thien Duong is the owner of the Alma Resort project in Cam Ranh, Nha Trang. With this resort of nearly 600 apartments and villas, Vinh Thien Duong Company also introduces itself on its website as a pioneer in the field of vacation ownership in Vietnam.

The vacation ownership model has been present in the world for decades. In Vietnam, this model started to develop since 2019 with suppliers such as Thien Duong Bay and some other businesses.

Typically, these businesses sell to customers a one-week or longer stay or vacation package at a luxury hotel or resort for 30-40 years at a price that can be up to hundreds of millions of VND, but the cost is still much cheaper than buying retail every year. At the same time, the units also advertise that customers can sell or rent it out at a higher price if they do not need to use the vacation during the year. This is also introduced as a profitable investment channel.

However, in July, the Ministry of Public Security warned people to be careful when signing vacation ownership contracts. The agency said it had received many complaints from people, denouncing a number of companies that operate vacation ownership businesses about participating in vacation sharing contracts, but not enjoying the benefits as promised or advertised by the supplier, incurring many additional costs. At the same time, customers cannot resell to others, nor can they get their money back.

Mr. Tu

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