Building materials producers have been knocked sideways by a hostile
business climate.
Vinacomin reported 10.2 million
tonne coal inventory as of July 31. Assuming one tonne of coal fetches
VND1.4-1.5 million ($66-$71), this unsold stock costs approximately VND15
trillion ($714 million).
Vinacomin reaped VND500 billion
($23.8 million) profits in the first six months of 2012, a big retreat compared
to its more than VND2.2 trillion ($104.7 million) profits in 2011’s same
period.
Vicem Ha Tien 1 Cement Joint
Stock Company (HT1) currently has a VND1.105 trillion ($52.6 million)
inventory, down VND160 billion ($7.6 million) compared to the first quarter as
a result of its strenuous efforts to boost sales.
Bim Son Cement’s current
inventory costs VND552 billion ($26.2 million). Small firms are also burdened
with rising inventory. For instance, a tunnel brick shareholding company in
central Thua Thien-Hue province reports unsold stock worth more than VND15 billion
($714,000) of this VND10 billion ($476,000) suffers high interest rates.
This big idle capital amount made
the firm incur serious losses. It had to retrench production to ease
consumption pressures, said the firm’s director Nguyen Van Thien.
As with HT1, of its current
VND11.105 trillion ($528 million) outstanding loans short-term loans account
for VND4.240 trillion ($202 million). This triggers concerns about the firm’s
ability to pay up debts upon maturity since the company’s 2011 revenue was VND5.3
trillion ($250 million). HT1 did not generate profits in four consecutive
quarters since financial expenses have eaten up its profits.
HT1 is not alone. Fifteen listed
cement and cement packaging firms report total asset value VND32 trillion ($1.5
billion) but their outstanding loans have amounted to VND25.5 trillion ($1.2
billion), tantamount to 79 per cent debt over asset rate.
Of these firms, Bim Son Cement’s
short-term debts reach VND1.496 trillion ($71.2 million) against VND1.370
trillion ($65.2 million) short-term asset. Its profits in the first six months
shed 12 per cent on-year and equal to 40 per cent of the year’s plan standing
at VND12.2 billion ($580,000).
Three firms counted losses in the
first half including Sai Son Cement, Tien Son Ha Tay and Song Da Yaly Cement
joint stock companies.
The Hai | vir.com.vn
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