According to the market watchdog, a quality inspection of Grant Thornton Vietnam’s 2025 audit services revealed that the 2024 audit file for Saigon Water did not comply with the requirements.

The auditors had not performed all necessary audit procedures and failed to obtain sufficient and appropriate audit evidence to support their opinion, as required by Vietnamese auditing standards. Consequently, the SSC decided to suspend the auditors who signed the 2024 audit report for Saigon Water.

In previous years, Saigon Water’s financial statements had been audited by the Saigon Branch of International Auditing Co., Ltd. However, starting from the first half of 2024, the company switched to Grant Thornton Vietnam as its auditor.

Over two review periods and one annual audit, Grant Thornton Vietnam consistently issued unqualified opinions, stating that the company’s financial statements gave a true and fair view in all material respects.

On July 8, Saigon Water’s board of directors decided to retain Grant Thornton Vietnam as the auditor for 2025, citing the firm’s suitable audit fees and experience with the company, its subsidiaries, and other firms in the water sector.

Audited financial statements are a key basis for assessing the reliability of financial information and ensuring corporate transparency. Therefore, the SSC closely monitors the independent audit quality of firms engaged in auditing listed companies.

In September, the SSC also flagged the 2024 audited financial statements of Thu Duc Trading and Import-Export JSC (TMC), audited by An Viet Auditing Co., Ltd., for similar deficiencies.

Accordingly, auditors had not performed adequate procedures or obtained sufficient evidence to support their opinions. The SSC likewise suspended the responsible auditors in that case.

Performance of Saigon Water

Saigon Water Infrastructure Corporation was formerly a subsidiary of Ho Chi Minh City Infrastructure Investment JSC (CII). After years of underperformance in the water sector, CII divested from Saigon Water in 2023.

The buyer was DNP Water JSC, a subsidiary of DNP Holding, established in 2017 with a long-term commitment to the water and environmental industries. The divestment was completed at the end of 2023, when DNP Water purchased an additional 20.4 million SII shares, increasing its ownership to 50.61%.

Saigon Water’s current shareholder structure is highly concentrated. DNP Water JSC holds 50.6%, Manila Water South Asia Holdings Pte. Ltd owns 38%, VIAC (No.1) Limited Partnership holds 10.9%, and other shareholders collectively own only 0.49% (about 3 million shares).

Since the change in ownership, Saigon Water’s business performance has not yet improved significantly. In 2024, the company reported a record profit of VND673 billion ($25.55 million), mainly from divesting its stakes in Tan Hiep 2 Water Plant and B.O.O Thu Duc Water Plant.

According to DNP Water, the transactions were completed in December 2024, bringing in over VND900 billion in cash and nearly VND700 billion ($26.58 million) in profit.

In the first half of 2025, revenue increased slightly from VND133 billion to VND144 billion, but gross profit declined from VND10.8 billion to VND8.7 billion.

Financial income fell while financial expenses surged, resulting in a loss of VND24 billion ($911,280), compared with a loss of VND4 billion in the same period last year.

The company attributed this to provisions related to the divestment of its long-term investment in B.O.O Thu Duc Water, which raised financial costs.

The divestment from Tan Hiep Water Plant at the end of 2024 helped the company avoid a recurring loss of VND45 billion from joint ventures and associates.

In general, the company is still at a loss due to the divestment of long-term investments and the revenues and incomes have not yet offset the expenses during the period. In addition, the output of the Cu Chi project has not achieved the desired results, and the loan to implement the Cu Chi project is too large, leading to high financial costs.

For 2025, the company targets total revenue of VND347 billion ($13.18 million), down 62.6% from 2024, and a net loss of VND23 billion ($873,330).

On the Ho Chi Minh Stock Exchange (HoSE), SII shares of Saigon Water closed Friday at VND17,800 ($0.68) apiece.