Novaland's $2.3B debt crisis wiped out chairman Bui Thanh Nhon's $2.9B fortune

Novaland was one of Vietnam's most prominent property developers, listed on the Ho Chi Minh Stock Exchange with a market capitalization peaking at over VND108 trillion. Its chairman, Bui Thanh Nhon, was a Forbes-listed billionaire worth $2.9 billion at the end of 2021, controlling over 61% of the company. Novaland had built dozens of residential projects across southern Vietnam, including the massive Aqua City development, financed heavily through bonds and bank loans.

The crisis began in 2022 when the State Bank of Vietnam tightened property credit and the government cracked down on corporate bond issuance. Novaland's cash became locked at banks and the company could not refinance its maturing debt. By November 2022 Novaland shares had hit floor prices for 17 consecutive sessions. Chairman Bui Thanh Nhon wrote to bondholders describing a 'force majeure circumstance' and requested payment extensions. He cited tightly controlled property credit and policy changes affecting bonds as the causes.

By 2025 Novaland had VND59 trillion ($2.3 billion) in total debt, with VND32 trillion maturing within 12 months. It defaulted on trillions of dong worth of bonds, including a VND1 trillion bond due February 2023 that it negotiated to extend by two months. The company proposed a $229 million debt-equity swap covering 13 bond issuances from 2021 to 2023, issuing 152 million new shares to bondholders. Novaland also defaulted on interest payments for $300 million in international bonds listed on the Singapore Exchange.

Bui Thanh Nhon's net worth collapsed from VND108 trillion at its 2021 peak to VND8.4 trillion ($329 million) by March 2025 — a 92% decline. He and his family sold shares to pay debts, reducing their ownership from over 61% to below 39%. Some sales were forced by commitments to bond investors. Novagroup, the parent company chaired by Nhon, continued selling Novaland shares through early 2024. Novaland reported a net loss of VND666 billion in the first half of 2025.