Worst performers in Q1 revealed

Despite Vietnamese companies’ total net profit growing 81 percent year-on-year in the first quarter, many still posted big losses.
Worst performers in Q1 revealed ảnh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - Despite Vietnamese companies’ total net profit growing 81 percentyear-on-year in the first quarter, many still posted big losses.

The nationalflag carrier Vietnam Airlines (HVN) reported the biggest loss of nearly 5trillion VND in the first three months of 2021. This amount increased over 90 percentagainst the same period last year. 

The COVID-19pandemic was the main reason severely affecting the carrier’s businessoperations.

As of March31, Vietnam Airlines recorded accumulated losses of over 14.2 trillion VND,exceeding its charter capital and pulling the company's equity from more than 6trillion VND to over 1 trillion VND. 

Under theLaw on Securities, if the enterprise has accumulated losses surpassing thecharter capital in the latest audited financial report before the review time,it will be forced to delist. Therefore Vietnam Airlines shares listed on the HoChi Minh Stock Exchange (HoSE) may be cancelled if it doesn’t increase itscharter capital by 8 trillion VND as planned.

The carrieralso has to pay debts of nearly 60 trillion VND. Of which, 12.69 trillion VND isshort-term liabilities and 21.64 trillion VND is long-term liabilities, leadingto the debt-to-equity ratio of 57.7, which is an extremely high risk level.However, the company's cash in its current account is 2.077 trillion VND.

ViettelGlobal is another company posting big losses in the first quarter. Even thoughits net revenue rose 8 percent year-on-year to over 4.6 trillion VND, thecompany still lost 422 billion VND. 

The maindriving force in the last quarter came from African markets with revenuejumping by nearly 18.5 percent to 1.75 trillion VND while profit reached nearly300 billion VND, which is the highest among its three main markets. At themoment, its main source of revenue in the African market come fromTanzania, Mozambique and Burundi.

However,Viettel faced a force majeure event related to political uncertainties inMyanmar. The crisis has had a great impact on foreign investors’ businessresults in the market, including Viettel's affiliate Mytel.

MasanHigh-Tech Materials (MSR), Habac Nitrogenous Fertilizer & Chemicals (DHB)and PetroVietnam Drilling & Well Services Corporation (PVD) also reportedlosses of hundreds of billions of VND.

Of which,Masan High-Tech Materials lost nearly 280.8 billion VND in profit after taxdespite a gain of 173 percent year-on-year in net revenue to nearly 3 trillionVND, mostly from selling tungsten. 

The losseswere due to higher cost of goods sold and other expenses. 

In the firstquarter of 2021, Habac Nitrogenous Fertilizer & Chemicals saw a loss ofover 249 billion VND, resulting in an accumulated loss of more than 5 trillionVND. 

In 2020, thecompany lost over 1.46 trillion VND, marking sixth straight annual loss. 

PetroVietnamDrilling & Well Services Corporation witnessed a loss of 109.9 billion VNDin profit after tax during the period due to the business of selling belowcost. Last year, the firm posted outstanding performance with profit after taxof 186 billion VND. 

The gas andoil industry still faces risks as the recovery of energy demand is slower dueto COVID-19.

Most ofthese companies' shares declined on May 13. Of which HVN, MSR, PVD all droppedmore than 1 percent, while VGI and DHB ended flat./.
VNA

See more

The Vietnamese section of the Monsoon – Thanh My 500kV transmission line project (Photo: VNA)

500kV transmission line from Laos energised

The Monsoon – Thanh My 500kV transmission line project is designed to import electricity from Laos’ Monsoon wind power plant to Vietnam, adding 600 MW to the national power grid during the 2024–2025 period.​

The entrance gate to Hanoi’s Ciputra Urban Area, where banks are selling apartments and villas. (Photo: cafef.vn)

Banks selling mortgaged assets to recover bad debts

The Viet Dragon Securities Company (VDSC) said that bad debts might continue to increase slightly this year, after a circular allowing banks to reschedule debt repayment periods and maintain the debt group for certain sectors expired at the end of 2024.

Vietnamese Ambassador to Argentina Bui Van Nghi (th fourth from the fright) in the meeting with Governor of Brazil's Espirito Santo state Renato Casagrande. (Photo: VNA)

Vietnam seeks to set up cooperation with Brazilian locality

In his meeting with Governor of Brazil's Espirito Santo Renato Casagrande, Ambassador to Argentina Bui Van Nghi Bui Van Nghi valued the potential for cooperation between the two sides, particularly in priority areas such as tourism, information technology, hi-tech agriculture, and seaport.

Remittances to Vietnam in 2024 are estimated at about 16 billion USD, maintaining the record-high levels seen in 2023. (Photo: VNA)

Remittances surge as Tet approaches

According to the State Bank of Vietnam’s Ho Chi Minh City branch, 9.6 billion USD, or 60% of the total remittances, flew through financial institutions, representing a 140 million USD increase from the previous year.

Bank lending in HCM City achieves high growth last year. (Photo courtesy of ABBANK)

Banks' credit up 11.3% in HCM City in 2024

Total outstanding loans of credit institutions in Ho Chi Minh City as of the end of last year were worth over 3.9 quadrillion VND (153.3 billion USD), a 11.3% increase for the year, according to the central bank.

Ho Chi Minh City received nearly 493 million USD in remittances in the first 20 days of this year. (Photo: https://doanhnhansaigon.vn)

Remittances to HCM City surge ahead of Tet

Ho Chi Minh City received nearly 493 million USD in remittances in the first 20 days of this year, according to Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam's HCM City branch.

Illustrative photo (Photo: VNA)

Retail petrol prices down in latest adjustment

The price of E5RON92 bio-fuel was priced at 20,592 VND (0.82 USD) per litre, representing a 158 VND decrease from the previous baseline, while RON95-III decreased to 21,142 VND per litre, down 78 VND.