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Golf course construction a bone of contention in Vietnam

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Dozens of golf courses have been built and put into operations across Vietnam over the past few years, while many others are in the making.

A total of 75 golf courses are being operated in the Southeast Asian country, according to Pham Thanh Tri, vice-chairman of the Vietnam Golf Tourism Association.

The number of golf courses in the country has risen to 75 in 2021 from 40 two years ago , Tri continued, adding that an average of one golf course project is approved for construction in Vietnam every two weeks.

Many localities have proposed that the central government allow them to invest in such projects, especially after a decree on golf business was implemented in April 2020.

Specifically, 10 new golf courses are expected to be licensed for construction in the central province of Quang Nam, seven in northern Bac Giang Province, and 10 in northern Vinh Phuc Province in the near future.

This means Vietnam may have over 100 active golf courses in the coming time.

Nguyen Van Dinh, secretary-general of the Vietnam Association of Realtors, told Tuoi Tre (Youth) newspaper that relevant authorities should make careful consideration before approving a golf course project.

A golf course should only be constructed in localities with an advantage in resort-oriented tourism to attract more domestic and international visitors.

“Our land bank is limited, while a golf course can cover a very large area,” Dinh elaborated.

“We may run out of land for socio-economic development.”

Some other experts warned that operating a golf course is not effective because of lofty maintenance cost.

A golf course is being constructed in Binh Thuan Province, Vietnam. Photo: Duc Trong / Tuoi Tre

A golf course is being constructed in Binh Thuan Province, Vietnam. Photo: Duc Trong / Tuoi Tre

Good for tourism development

As living conditions improve, the number of people interested in playing golf increases, resulting in the rise in demand for golf courses, a tourism expert stated.

“It is quite cheap to travel, eat, and play golf in Vietnam so an increasing number of international tourists, especially those from South Korea, are coming here for the sport,” the pundit continued.

“A lack of golf courses may lead to a sharp slide in the number of South Korean visitors.”

Vietnam currently has about 100,000 golfers, each of whom plays 20 games a year on average, said Vietnam Golf Tourism Association vice-chairman Tri.

The Southeast Asian nation’s potential for golf tourism is very promising, especially during the winter from October to February.

Prior to the COVID-19 pandemic, foreign tourists coming to Vietnam to play golf climbed 20 percent annually, Tri said.

The new decree on golf business fits the orientation of the Law on Planning, Tran Quoc Phuong, Deputy Minister of Planning and Investment, said, adding that the emergence of more golf courses is just to meet the rising demand.

A golf course is not bad itself, Phuong continued, reasoning that it is only when the course is used for other purposes.

A golf course is being constructed in Vietnam. Photo: Quang Dinh / Tuoi Tre

A golf course is being constructed in Vietnam. Photo: Quang Dinh / Tuoi Tre

Loophole

According to current regulations, developers are allowed to build low-rise buildings inside golf courses, but these buildings must cover only 10 percent of the total area.

However, a probe by Tuoi Tre revealed that in several golf courses, the developers had constructed clubhouses, hotels, and resort villas occupying up to 20 percent of the site.

These properties have been sold and leased against the law.

Authorities must collect taxes from such business operations to prevent losses in internal revenue collection, Prof. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, suggested.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, underscored that local authorities have to take responsibility for letting businesses take advantage of this loophole.

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Source: https://tuoitrenews.vn/news/business/20210411/golf-course-construction-a-bone-of-contention-in-vietnam/60301.html

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Vietjet’s fourth-quarter revenue increases over four times

Vietjet Aviation Joint Stock Company (HoSE: VJC) reported net sales of VND11,807 billion ($503 million), which is 4.2 times more than the same period in 2021 and back closer to pre-pandemic levels.

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Vietjet reported net revenue of VND11,807 billion ($503 million) in the fourth quarter of 2022, an increase of 323% over the fourth quarter of 2021. Vietjet experienced a loss after tax of VND 2,171 billion ($92 million) for the entire year. In the history of the business, this was the first year with a loss.

The firm had a gross loss of VND3,843 billion ($163 million) due to a substantial increase in the cost of goods sold to VND15,650 billion ($667 million). This is the biggest quarterly gross loss ever for Vietjet.

Both financial income and expenditures were much larger than they were during the same period in 2021, totaling VND2,064 billion ($88 million) and VND1,353 billion ($57 million), respectively. The fourth quarter of the prior year only had a loss of VND82 billion ($3.5 million), but the current quarter saw a net loss of VND3,746 billion ($160 million).

In the fourth quarter of 2022, Vietjet unexpectedly reported VND 1,625 billion ($69 million) in “other income,” a significant increase from the VND 7.8 billion ($332 thousand) recorded the previous quarter.

Due to this exceptional result, Nguyen Thi Phuong Thao’s airline only had a loss after taxes of VND 2,358 billion ($100 million), which is significantly less than the net loss from the aforementioned commercial operations. The fourth quarter result is still Vietjet’s greatest ever after-tax deficit, though.

Vietjet reported a net profit of VND39,342 billion ($1.6 billion) for the whole 2022 fiscal year, a threefold increase over the prior year. To VND2,167 billion($92 million), the gross loss grew by 6%. After-tax loss of VND2,171 billion ($92.5 million), in contrast to a profit of VND122 billion ($5.2 million) in 2021.

Source: https://e.nhipcaudautu.vn/companies/vietjets-fourth-quarter-revenue-increases-over-four-times-3350414/

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Vietnam Airlines risks stock delisting

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The Ho Chi Minh City Stock Exchange (HoSE) on Thursday warned that Vietnam Airlines (HVN) could be delisted if an audit proves the company has logged an operating loss for three consecutive years.

In its warning, the HoSE cited the firm’s consolidated financial statement for the last quarter of 2022 in which Vietnam Airlines posted an accumulated loss of nearly VND34.2 trillion (US$1.46 billion) in 2022. 

The carrier also reported that its equity was negative VND10.2 trillion ($435.4 million) last year.

According to the Law on Securities, the stock of a public company must be delisted if it suffers annual operating losses for three consecutive years, if its accumulated losses exceed its charter capital, or if its equity is negative.

As such, if Vietnam Airlines’ audited consolidated financial statement for 2022 shows a loss, it will be the firm’s third consecutive year of operational losses and its ticker will be delisted, the HoSE warned. 

On June 1, 2022, the HoSE issued a decision to put HVN into ‘under control’ status after the firm released a report on its accumulated losses and negative equity. 

In its most recent quarterly consolidated financial statement, Vietnam Airlines attempted to explain its operating losses, noting that it has implemented a series of short- and long-term solutions during the past year to minimize damage caused by the COVID-19 pandemic.

It also declared that it was adding more capital and increasing its operational cash flow.

However, due to the slow recovery of the international aviation market, negative factors such as high fuel prices, ongoing global conflicts, and increased fluctuations in exchange and interest rates, the national carrier continued to suffer losses in both the fourth quarter and the whole of 2022.

Nonetheless, Vietnam Airlines expressed its belief that the global aviation market would gradually recover from the last quarter of 2022 and that the firm will have a better 2023.

Vietnam Airlines has decided to completely restructure itself for the 2021-25 period in a move that was approved by shareholders and relevant agencies. 

“The corporation believes that its business activities have gradually stabilized and is preparing for recovery and development in the near future,” the airline claimed.

HVN now trades at around VND13,200 ($0.56) per share, down 11 percent just this month.

In January 2022, HVN was trading at VND27,300 ($1.16) per share.

Established in 1995, Vietnam Airlines has 19 subsidiaries and two affiliates.

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The Ho Chi Minh City Stock Exchange (HoSE) on Thursday warned that Vietnam Airlines (HVN) could be delisted if an audit proves the company has logged an operating loss for three consecutive years.

In its warning, the HoSE cited the firm’s consolidated financial statement for the last quarter of 2022 in which Vietnam Airlines posted an accumulated loss of nearly VND34.2 trillion (US$1.46 billion) in 2022. 

The carrier also reported that its equity was negative VND10.2 trillion ($435.4 million) last year.

According to the Law on Securities, the stock of a public company must be delisted if it suffers annual operating losses for three consecutive years, if its accumulated losses exceed its charter capital, or if its equity is negative.

As such, if Vietnam Airlines’ audited consolidated financial statement for 2022 shows a loss, it will be the firm’s third consecutive year of operational losses and its ticker will be delisted, the HoSE warned. 

On June 1, 2022, the HoSE issued a decision to put HVN into ‘under control’ status after the firm released a report on its accumulated losses and negative equity. 

In its most recent quarterly consolidated financial statement, Vietnam Airlines attempted to explain its operating losses, noting that it has implemented a series of short- and long-term solutions during the past year to minimize damage caused by the COVID-19 pandemic.

It also declared that it was adding more capital and increasing its operational cash flow.

However, due to the slow recovery of the international aviation market, negative factors such as high fuel prices, ongoing global conflicts, and increased fluctuations in exchange and interest rates, the national carrier continued to suffer losses in both the fourth quarter and the whole of 2022.

Nonetheless, Vietnam Airlines expressed its belief that the global aviation market would gradually recover from the last quarter of 2022 and that the firm will have a better 2023.

Vietnam Airlines has decided to completely restructure itself for the 2021-25 period in a move that was approved by shareholders and relevant agencies. 

“The corporation believes that its business activities have gradually stabilized and is preparing for recovery and development in the near future,” the airline claimed.

HVN now trades at around VND13,200 ($0.56) per share, down 11 percent just this month.

In January 2022, HVN was trading at VND27,300 ($1.16) per share.

Established in 1995, Vietnam Airlines has 19 subsidiaries and two affiliates.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230203/vietnam-airlines-risks-stock-delisting/71286.html

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Vietnam Tech unicorn VNG record a loss of over $56 mln in 2022

In 2022, VNG lost over VND1,315 billion ($56 million) after taxes. The undistributed after-tax profit of VNG, however, had still been greater than VND5,311 billion ($226 million) by the end of 2022.

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According to the financial report for the fourth quarter of 2022 from VNG Joint Stock Company (Code: VNZ), net sales climbed marginally by 6% to VND2,037 billion ($86.7 million) from the same quarter in 2021.

The gross profit margin increased to 45% in the fourth quarter of 2022 from 40% in the same quarter the previous year. 

This tech unicorn had a post-tax loss of over VND547 billion ($23.3 million) due to expenses depleting gross earnings, a substantial rise from the loss of VND267 billion ($11.3 million) during the same period. The fourth quarter of 2022 saw a VND435 billion ($18.5 million) net loss for VNG.

VNG’s cumulative net revenue in 2022 was 7,801 billion ($332 million), an increase of 2% from 2021. Since disclosing the information, the corporation has experienced a record loss after taxes of more than VND1,315 trillion ($56 billion). 

However, VNG had more than VND5,311 billion ($226.4 million) in cumulative unremitted after-tax earnings by the end of 2022.

With the above statistics, VNG fell short of its loss goal of VND993 billion ($39 million) for 2022 and only achieved 77% of the revenue forecast.

The entire assets of VNG exceed VND9,092 billion ($387 million) by the end of 2022, a decrease of less than 2% from the year’s commencement. Which accounts for one-third of total assets and is down VND2,000 billion ($85 million) from the start of the year. This technological group has VND3,079 billion ($131 million) in cash, cash equivalents, and bank deposits. VNG received interest on deposits totaling more than VND89 billion ($3.7 million) in 2022.

Besides, VNG also recorded VND1,484 billion ($63.2 million) of investment in affiliated companies and other units, 3.7 times higher than the first year. 

Only the investment in Dayone was profitable in the year, the rest of Rocketeer, Ecotruck, Beijing Youtu, Telio, and Funding Asia companies all lost, and VND1,000 billion  ($42.6 million) for the VNG Data Center project, this is the new data center with the largest rack scale in Vietnam, which has just been opened by VNG in mid-December, 2022.

By the end of 2022, the corporation had more than 7.1 treasury shares valued at more than VND1,264 billion ($53.9 million). All of these treasury shares will be offered by VNG to BigV Technology JSC for VND177,881 per share ($7.58).

Source: VietnamBiz

Source: https://e.nhipcaudautu.vn/companies/vietnam-tech-unicorn-vng-record-a-loss-of-over-56-mln-in-2022-3350413/

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