BFC and TCH Face Tax Penalties Totaling Over 23.6 Billion VND

Overview

Binh Dien Fertilizer Joint Stock Company (BFC) and Hoang Huy Financial Services Joint Stock Company (TCH) have received administrative tax penalties from Ho Chi Minh City Tax Department for incorrect declarations. The total penalties exceed VND 23.6 billion combined, stemming from State Audit recommendations for the 2024 budget period. This regulatory action affects two publicly traded companies in different sectors during a period of varied financial performance.

Key Facts

• BFC penalty: VND 607.5 million fine plus VND 3 billion in back corporate income tax, totaling over VND 3.6 billion.
• TCH penalty: VND 2.7 billion fine plus VND 13.7 billion in back corporate income tax and VND 3.8 billion in late payment fees, totaling over VND 20 billion.
• TCH must also adjust deductible VAT carried forward by over VND 108 million.
• BFC’s back-tax amount avoids late payment charges due to existing corporate income tax overpayments.
• Both cases originated from State Audit recommendations for the 2024 budget year.
• BFC reported 2025 consolidated revenue of VND 10,751 billion (+13% YoY) with pre-tax profit of VND 495.3 billion (-6% YoY).
• TCH reported Q3/2025 standalone revenue of VND 34.8 billion (-95.7% YoY) and net profit of VND 33.6 billion (-84.19% YoY).

What Happened

According to company filings, Binh Dien Fertilizer (BFC) received a decision from Ho Chi Minh City Tax Department imposing administrative penalties for tax violations. The company incorrectly declared expenses, leading to underpayment of corporate income tax. The penalty includes a VND 607.5 million fine for the violation and recovery of over VND 3 billion in back taxes. The tax authority determined the recovery amount based on State Audit recommendations for the 2024 budget year. Notably, the back-tax amount does not incur late payment charges because BFC had overpaid corporate income tax at the time of penalty assessment.

Separately, Hoang Huy Financial Services (TCH) received a similar penalty decision for incorrect declarations resulting in corporate income tax underpayment. The company faces a VND 2.7 billion fine plus recovery of nearly VND 13.7 billion in back taxes and approximately VND 3.8 billion in late payment fees. TCH must also reduce deductible value-added tax carried forward by over VND 108 million. The total penalty exceeds VND 20 billion. TCH attributed its sharp revenue decline in Q3/2025 to focusing resources on key projects in Hai Phong while completed projects had already recognized revenue in prior periods.

Market Context

Both companies trade on the Ho Chi Minh Stock Exchange (HOSE). On April 10, 2026, BFC closed at VND 58, up 4.32% on volume of 243,500 shares, while TCH closed at VND 17, down 0.87% on significantly higher volume of 13.56 million shares. The penalties come against contrasting financial backdrops: BFC maintains substantial revenue growth despite profit pressure, while TCH experiences severe revenue contraction as it transitions between real estate project cycles within the Hoang Huy Group ecosystem.

Strategic Significance

The tax penalties highlight increased regulatory scrutiny on corporate tax compliance following State Audit reviews. For BFC, the VND 3.6 billion liability represents approximately 1.2% of its 2025 standalone pre-tax profit, presenting a manageable financial impact but potentially affecting investor perception of governance. For TCH, the over VND 20 billion penalty compounds existing financial stress from dramatic revenue declines, testing the company’s liquidity during its project development phase. Both cases underscore the importance of accurate tax reporting as Vietnamese authorities strengthen enforcement mechanisms.

What to Watch

• Full-year 2025 financial statements for both companies to assess the penalties’ impact on net profit.
• TCH’s Q4/2025 results to determine if revenue recovery materializes from new project phases.
• Any further regulatory actions stemming from the State Audit’s 2024 budget recommendations.
• BFC’s 2026 guidance regarding potential adjustments to expense recognition practices.
• TCH’s liquidity position and ability to meet the substantial penalty payment alongside project funding needs.