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SOE performance during the Covid-19 pandemic

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Many state-owned enterprises (SOES) experienced a turbulent year in 2020. In the first half of 2021, many businesses escaped the crisis and gained impressive results.

However, there are still corporations strongly affected by the epidemic, such as Vietnam Airlines and Vietnam Railways Corporation.

PVN overcomes difficulties, banking sector earns big profits

SOE performance during the Covid-19 pandemic

In the first half of the year, Vietcombank’s pre-tax profit reached VND 14,560 billion, up 36% over the same period last year, ranking first for profit.

Contrary to the “gloomy” picture of many enterprises, state-owned enterprises have achieved many impressive business results compared to 2020, especially the Vietnam Oil and Gas Group (PetroVietnam) and the banking sector.

According to a report of the Party Committee of the Central Business Bloc (including over 30 state-owned corporations), in the first half of 2021, total revenue of corporations in this group was estimated at VND717.48 trillion, up 4.43%; pre-tax profit at VND76.45 trillion, up 77.7%; and tax payment at VND114.53 trillion, up 3.21% year on year.

Corporations in the industrial production and finance and banking sectors, and Petrovietnam, had impressive business results. Textile and garment profits increased by 96%, and steel increased by 216%. Banks also earned high growth rates such as BIDV at 80%, Vietinbank 75%, Agribank 40%, and Vietcombank 36%.

In the first half of the year, Vietcombank’s pre-tax profit reached VND 14,560 billion, up 36% over the same period last year, ranking first for profit.

Le Manh Hung, PetroVietnam General Director, said that the Covid-19 pandemic has narrowed the market for energy products and products of the oil and gas industry and affected the continuous operation of oil and gas projects at home and abroad.

In 2020, the phrase “the most difficult year in the history of the oil and gas industry” often appeared in PetroVietnam’s reports. There was a time when the world oil price fell to negative levels. However, in the first six months of the year, PetroVietnam “revived” strongly. The group’s total revenue reached VND 299.3 trillion, exceeding 20% of the 6-month plan and 22% over the same period in 2020.

After a difficult year, Vietnam Textile and Garment Group (Vinatex) also broke a record in its 25 years of history, with pre-tax profit estimated at VND557.8 billion, up 95.6% year on year, reaching 79.7% of the yearly plan.

Despite facing many difficulties from the Covid-19 pandemic, state-owned enterprises still tried to come up with a plan to survive and stand firm. The report of the Ministry of Finance shows that revenue from the state-owned enterprise sector in the first six months reached 52.9% of the estimate, up 18.2%.

Transport sector at a loss

SOE performance during the Covid-19 pandemic

By June 30, 2021, the combined accumulated loss of Vietnam Airlines was more than VND19.8 trillion.

At a recent conference, Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines said that by June 30, 2021, the combined accumulated loss of Vietnam Airlines was more than VND19.8 trillion. In the most optimistic scenario, by the end of 2023-2024, international aviation will recover to the level of 2019. Before the Covid-19 epidemic, Vietnam Airlines operated about 550 flights a day.

The overdue debt of the airlines has reached VND6.24 trillion. The national flag air carrier has fallen into an extremely difficult situation and is on the verge of bankruptcy, according to the Ministry of Planning and Investment.

Explaining to its shareholders about business performance in 2021, Vietnam Airlines said the impact of the Covid-19 outbreak had caused total revenue and income from other sources of the holding company to fall by 65.3 percent compared with the same period last year (VND9.558 trillion). The income from services dropped sharply by 63.7 percent.

Vietnam Airlines’ domestic revenue dropped by 25.8 percent and international revenue by 97 percent, while revenue from chartered flights fell by 83.5 percent. As the drop in revenue was higher than the fall in operation costs, the post-tax profit fell by VND2.793 trillion.

Having no passengers, hundreds of aircraft have been idle. According to Planespotters, 127 out of 218 aircraft of four airlines in Vietnam have been suspended.

The Vietnam Railways Corporation (VNR) is in a similar situation. Dang Sy Manh, VNR General Director, said that since the Covid-19 pandemic broke out in early 2020, the railway industry has been experiencing an unprecedented difficult period. It is estimated that in the two years affected by the Covid-19 epidemic, VNR will lose more than VND2,200 billion.

Recently, VNR asked for the Committee for Management of State Capital at Enterprises’ VND 800 billion loan with preferential interest rates to maintain operations. According to VNR, this is the minimum to maintain operation at the lowest costs.

Luong Bang

Source: https://vietnamnet.vn/en/feature/soe-performance-during-the-covid-19-pandemic-761607.html

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EVN reduces electricity purchases as consumption drops

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Because of low electricity consumption, thermopower, hydropower, wind and solar power plants have had to cut their capacity.

EVN reduces electricity purchases as consumption drops

According to the Vietnam Electricity Regulatory Authority (A0), electricity consumption in the country continued to decrease in the first two weeks of September 2021.

The peak daily capacity of the whole country was 29,700MW, while the total output of the entire electricity system was 624.3 million kwh per day.

As such, the country’s electricity consumption in the first half of the month was 24 percent lower than before, when large-scale social distancing began in mid-July and 15 percent lower than the same period last year.

The peak daily capacity in the south in the first two weeks of September was 12,200MW, while the total output was 243 million kwh per day.

The electricity consumption of the southern region during that time was 29 percent lower than before, when social distancing began and 23 percent lower than the same period last year.

To ensure the safe operation of the national electricity system when consumption goes down as a result of social distancing, A0 and local regulatory units have adjusted the mobilization of electricity to the demand of the whole country and every region, while ensuring technical requirements to regulate the national system safely.

“The regulation of the national system must fit the structure of power sources and transmission capacity among regions. The mobilization of electricity sources in the system is always implemented with the principle of transparency and equality, with no discriminatory treatment to the types of electricity sources,” the Electricity of Vietnam (EVN) stated.

EVN has asked owners of power plants to closely cooperate with A0 and local regulatory units and strictly implement commands on electricity mobilization to ensure the safe operation of the national electricity system, especially when consumption decreases as a result of Covid-19.

This means that power plants will have to cut capacity and their electricity would be unsold.

According to EVN, the power generating units that connect and provide electricity to the national grid have the responsibility of strictly complying with the operation method and commands of the regulatory units which have the right to control and examine as prescribed in Circular 40/2014/TT-BCT stipulating the process of regulating the national power system, and Circular 31/2019/TT-BCT that amends and supplements a number of articles of the process. They have to take responsibility for violations of the law.

In related news, EVN Hanoi reported that as of the end of August, it had reduced electricity prices and electricity bills for clients hit by Covid-19, totaling VND329.58 billion. 

Luong Bang

Source: https://vietnamnet.vn/en/business/evn-reduces-electricity-purchases-as-consumption-drops-776785.html

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Ministry investigates evasion of trade remedies for cane sugar

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Bags of sugar displayed for sale at a supermarket in Bangkok. — VNA/ Photo Ngọc Quang

HÀ NỘI — The Ministry of Industry and Trade (MoIT) on Tuesday issued a decision to investigate the evasion of trade remedies for cane sugar products originating from Thailand after considering requests from domestic sugar producers.

The ministry said it has received the petition of the Vietnam Sugarcane and Sugar Association (VSSA) and domestic cane sugar refineries, which submitted evidence that Thai cane sugar products subject to anti-dumping and anti-subsidy taxes have entered the Vietnamese market through five ASEAN countries of Laos, Cambodia, Indonesia, Malaysia and Myanmar.

The MoIT officially imposed anti-dumping and anti-subsidy duties on a number of sugar cane products originating from Thailand on June 15, 2021.

Data of local customs agencies shows that the volume of sugar imported from the five above-mentioned ASEAN countries had increased sharply to 527,200 tonnes from 107,600 tonnes after Viet Nam initiated an anti-dumping and anti-subsidy investigation into sugar from Thailand from October 2020 to June 2021.

Meanwhile, the import volume from Thailand has decreased by nearly 38 per cent, from 955,500 tonnes to 595,000 tonnes in the period.

The MoIT has actively coordinated with the VSSA to monitor the import of cane sugar products and actively consulted and assisted the VSSA, as well as the domestic cane sugar industry, in collecting information and data and making a petition to request an investigation into this behaviour. —

Source: https://vietnamnews.vn/economy/1036330/ministry-investigates-evasion-of-trade-remedies-for-cane-sugar.html

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Santorini masterpiece on the most beautiful avenue of Vung Tau downtown

Léman Cap Residence has taken inspiration from paradise island Santorini in Greece to bring the Mediterranean breath to Ha Long street, the most beautiful avenue in the coastal city of Vung Tau.

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Project inspired by Santorini Paradise, a destination of Hollywood stars

Santorini is a mainstay on the list of Top 10 paradise islands by the famous American Travel + Leisure Magazine. The island has also been voted as one of the Top 20 most expensive vacation destinations in the world with five-star luxury resorts. It is apparent why many famous Hollywood stars choose Santorini for vacationing.

Rumor has it that “Mrs. Smith” Angelina Jolie once bought a villa right on Santorini island for annual vacations. If you ever get lost here, you will most likely come across Tom Hanks and his wife, Shakira and Pique, or basketball player Michael Jordan. Music star Justin Bieber has also been to Santorini to enjoy the delicious food and wine. The island’s famous specialty is made from grapes grown on the volcanic mountains.

Santorini has always been an irresistible magnet with its characteristic Cycladic architecture, an integral part of the Mediterranean culture. Cycladic architecture is famous for its uniqueness and charm, providing the islands with minimal aesthetics but with a daring style. The most prominent characteristic of this architectural style, are the white washed cube houses built next to and on top of one another.

Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau
Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau

Visit Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau

Visitors looking for a taste of Greece need not go that far anymore. Léman Cap Residence now captures the essence of the paradise island Santorini in its design and architecture. Travel lovers can now visit the made in Vietnam Santorini to admire the beauty of the island on Ha Long Street in Vung Tau.

Ha Long is the most bustling street in Vung Tau with well-developed transport infrastructure surrounded by thousands of five-star entertainment services. Along the avenue lie many famous tourist attractions such as Front Beach, Pineapple Beach, Nghinh Phong Cape, Bai Dau and Bai Sau tourist areas, which welcome millions of tourists every year.

Just a few minutes walk from Léman Cap Residence apartment to Ha Long Street, you can easily access a variety of branded shophouses, specialty restaurants, entertainment services, temples and churches, which are the cultural symbols of Vung Tau. Being located on the central route of the city, visitors can reach other areas quickly and easily via Long Thanh International Airport, Ring Road 4 connecting Vung Tau with the western region, as well as many other highways.

The masterpiece Léman Cap Residence fascinates with its unique Santorini architecture with characteristic white and blue colours. The project offers remarkable and unique ocean views while leaning against the green hills. A forest in the middle of the busy street, Léman Cap Residence is a separate resort complex with green nature, blooming flowers and chirping birds all year round.

Léman Cap Residence is located in Ha Long street - the most beautiful central avenue in the coastal city of Vung Tau
Léman Cap Residence is located in Ha Long street – the most beautiful central avenue in the coastal city of Vung Tau

Léman Cap Residence will leave impression on people with its beauty. Léman Cap Residence is a unique Santorini masterpiece with the immense blue sea in front and the fresh green mountains behind. Meanwhile, the surrounding areas are bustling and colourful entertainment complex. 

Léman Cap Residence: Masterpiece Santorini – A diamond on the most beautiful central avenue in the coastal city of Vung Tau

Hotline: 0918887920

Website: https://lemancapresidence.vn/

Fanpage: https://www.facebook.com/lemancapresidences

Source: https://e.nhipcaudautu.vn/real-estate/santorini-masterpiece-on-the-most-beautiful-avenue-of-vung-tau-downtown-3342113/

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