The owner of Dam Sen Park has accumulated losses of more than 400 billion VND

According to the second quarter financial report, Phu Tho Tourism Services Joint Stock Company (Phu Tho Tourist – DSP) had revenue of nearly 46.4 billion VND, an increase of 5%. Financial revenue was 95% higher than the same period, up to more than 13.7 billion VND.

This period, cost prices and expenses both increased, totaling more than 66 billion VND, higher than the company’s total revenue combined. Of which, land rent accounts for 30% of the cost of capital. This is the main reason why Phu Tho Tourist lost nearly 6 billion VND. This is the second consecutive quarter the company has lost money. However, thanks to improved revenue sources over the same period, this profit deficit also decreased by 37%.

However, negative second quarter business results caused DSP’s total accumulated loss to rise to nearly 402 billion VND, nearly half of its equity.

Phu Tho Tourist manages and operates 4 business units including: Dam Sen Cultural Park (also known as Dry Dam Sen), Ngoc Lan – Phu Tho hotel cluster, Dam Sen Tourist Service Center and Vam Sat mangrove eco-tourism area. The company also participates in an association at Dam Sen Water Park (DSN) and makes financial investments in two hotels, including Saigon – Da Lat (Lam Dong) and Saigon – Dong Ha (Quang Tri).

As one of the oldest theme parks in Ho Chi Minh City and located near the center, Dam Sen has become a “burden” for Phu Tho Tourist. For many consecutive years, this park caused huge losses for DSP. Meanwhile, Dam Sen Nuoc recorded quite positive business results.

This year, the company set a goal of reaching more than 237.25 billion VND in revenue and continuing to lose more than 28.2 billion VND. After 6 months, they completed nearly 41% of their revenue target and lost about 45% compared to the expected level for the whole year.

According to the owner of Dam Sen, open public spaces such as urban parks, walking streets, integrated urban areas, and large commercial centers are well-invested, organize many community activities, and most of them do not charge fees or charge very low fees. This reduces the frequency of visits and the ability of local visitors to return multiple times a year.

In addition, the company also finds that it is facing competition from competitors in the same industry. Among them, Suoi Tien, VinWonders Grand Park, Zoo, and Amazing Bay are the brands mentioned by the management.

Previously, Phu Tho Tourist identified product and service innovation as one of the focuses this year. They plan to “revive the icon” of Dam Sen with key customers being Gen Z, Gen Alpha and family groups. The company will upgrade the games and invest in small-scale games with high technology such as virtual reality (VR), movement games combined with environmental education (eco-adventure)… combined with organizing periodic weekend shows, night street cuisine and music. Landscape improvement and check-in points will also be emphasized.

The company will also resolve bottlenecks such as applying for land use rights and 1/500 planning for Dam Sen. According to the management, this is the biggest difficulty that prevents them from investing in large-scale construction projects.