Workers at PetroVietnam carry out technical checks. Fitch Ratings last month assigned PVN first-time long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook. (Photo: VNA/VNS) Hanoi (VNS/VNA) - Demand for investment capitalat the Vietnam Oil and Gas Group (PetroVietnam) and its member units for2018-20 is estimated to reach 620 trillion VND (26.7 billion USD), PetroVietnamSecurities Inc (PSI) recently announced.
According to Bui Huy Long, deputy general director of PetroVietnamSecurities Inc, of the 620 trillion VND, loans accounted for more than 30percent through traditional credit and bond issuances.
Urgent projects such as Thai Binh 2 Thermal Power Plant, LongPhu 1 Thermal Power Plant, Block B-O Mon Gas Project, Blue Whale Gas Projectand Sao Vang – Dai Nguyet Gas Project, will require 4 billion USD, Longsaid.
Fitch Ratings last month assigned PetroVietnam first-timelong-term foreign-currency issuer default rating (IDR) at 'BB' with a positiveoutlook.
This is a positive credit rating that will help PetroVietnamimprove its ability to mobilise capital in the international market anddiversify capital sources for investment projects in the context ofrestrictions for loans guaranteed by the Government.
This showed PetroVietnam’s strong financial status andbusiness performance as well as its bright business prospects, instillingconfidence in domestic and foreign investors, financial institutions andstrategic partners, especially during the group’s restructuring process.
However, despite the increase in foreign investment inflowinto Vietnam, FDI in the oil and gas industry was on the decline, from 2billion USD per year previously to only a few hundred million USD, Long said.
In addition, policies related to the oil and gas industry arebeing tightened, making investors worried, he told the Energy Journey 2019conference organised by PetroVietnam Securities Inc (PSI) late November in thesouthern province of Ba Ria-Vung Tau.
Speaking at the conference, economist Vo Tri Thanh saidthat international organisations have forecast a deceleration for theglobal economy in 2020, amid ongoing worldwide uncertainty.
For the energy sector, businesses need to be ready to responseto fluctuating oil prices. OPEC countries have cut production and Iran isunder an oil embargo while the world witnesses an oversupply, and the UShas become a major exporter thanks to shale oil exploitation, Thanh said.
According to Nguyen Son, chairman of the Vietnam SecuritiesDepository Centre, bond issuance channel has become an effective wayto raise capital on the stock market.
The new provisions in the recently-passedSecurities Law would create a healthy development environment for the bondmarket, he said.
For petroleum enterprises, besides mobilising capital viabank credit, it is necessary to diversify capital sources such as exportcredit, bond issuance, financial leasing and FDI attraction, Son said./.
VNA
