Hà Nội to divest entire stake in 70-year-old Thuong Dinh Footwear (GTD)

Hà Nội to divest entire stake in 70-year-old Thuong Dinh Footwear (GTD)

The city’s authority will offload more than 6.38 million shares, equivalent to 68.67 per cent of the company’s charter capital at the reserve price of VND20,500 (US$0.80) per share.

Thuong Đình canvas shoes are being paired with modern outfits as the brand regains attention. — Photo afamily.vn

Hà Nội People’s Committee will auction their entire stake in Thuong Dinh Footwear Joint Stock Company (GTD), marking a full divestment from one of Việt Nam’s oldest shoemakers, according to a filing to the Hanoi Stock Exchange (HNX).

The city’s authority will offload more than 6.38 million shares, equivalent to 68.67 per cent of the company’s charter capital. The reserve price is set at VND20,500 (US$0.80) per share. If fully sold, Hà Nội could collect at least VND130.9 billion ($5 million).

The auction is scheduled for the morning of December 16 and is open to domestic and foreign institutional and individual investors.

GTD shares have soared nearly 50 per cent in three trading days following news of Hà Nội’s plan to divest. The stock hit the daily upper limit for three consecutive sessions and closed at VND17,300 on November 21, pushing the company’s market capitalisation to about VND160 billion.

Despite the sharp rally, GTD remains 32 per cent below its late-September peak. The stock has also been under trading warning status after receiving qualified audit opinions for more than three consecutive years.

Once-iconic brand struggles amidst long decline

Founded in 1957 as military workshop X30, Thuong Dinh Footwear was once a household name in northern Việt Nam, exporting canvas shoes to Eastern Europe and the EU from the mid-1980s. Its green-striped canvas shoes dominated the domestic market in the early 1990s.

The company holds a prime 3.6-hectare land plot at 277 Nguyễn Trãi Street in Phương Liệt Ward, which is slated for relocation and redevelopment under the city’s plans.

But the brand has been in long decline as competitors such as Biti’s, Nike and Adidas expanded in Việt Nam. Outdated production lines, weak design competitiveness and falling demand have eroded its market share.

The company was equitised in 2016 and listed 9.3 million shares on UPCoM with the sticker GTD. However, its financial performance has remained weak, with losses recorded in most of the past decade.

The firm posted net revenue of VND78.8 billion in 2024, down 2 per cent year-on-year, and a net loss of nearly VND13 billion – almost triple that of 2023. Accumulated losses rose to more than VND67 billion by end-2024.

Short-term liabilities now exceed short-term assets, and auditors have repeatedly raised doubts over the company’s ability to continue operations.

GTD ended 2024 with total assets slipping to just over VND120 billion, while liabilities climbed to VND94 billion. Domestic sales fell 14.5 per cent despite new online channels, and export orders remained unstable. In 2025, the company plans to raise output to as much as 900,000 pairs and targets VND100 billion in revenue, aiming to return to break-even. 

Bizhub