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Vietnamese enterprises exhilarated by synergy from cooperation plan

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A plan to develop a self-reliant industry put forward by Truong Hai Auto Corporation (THACO) is winning the approval of many other Vietnamese enterprises and received positive feedback for further improvement.

Doan Vo Khang Duy, deputy chairman of the Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE) and director of Ameco Industrial JSC, highly appreciated THACO’s initiative, which is called the ‘one-stop’ model.

Substantial synergies

The model, which encourages cooperation among Vietnamese enterprises to increase Vietnamese industry’s self-reliance, has proved a success in other countries, according to Duy.

It brings important synergies to businesses in terms of capital, equipment, technology, and many more by using resources and joining the ecosystem that THACO has built.

It helps increase the size of the business, thereby boosting revenue.

Enterprises will also be able to improve the quality and stability of their products, and overcome the weaknesses that has hampered the growth of Vietnamese supporting industries.

More professional assignment allows each enterprise to focus on certain businesses, stabilizing and maximizing product quality.

The model will also help enterprises enter more foreign markets as a whole as well as introduce Vietnam’s industry to more potential customers.

However, Duy emphasized the importance of building a platform to connect firms that express an interest in participating in THACO’s ecosystem and validate their capacity.

In this way, the enterprises can take advantage of each other’s potential, instead of merely moving factories into a cluster or gathering them in one place.

An employee works at the Lap Phuc Mechanical Company factory in District 7, Ho Chi Minh City. Photo: Quang Dinh / Tuoi Tre

An employee works at the Lap Phuc Mechanical Company factory in District 7, Ho Chi Minh City. Photo: Quang Dinh / Tuoi Tre

Excitement from enterprises

Many businesses expressed their excitement about the option to link production with THACO to form a value chain.

Tran Hoai Nam, another deputy chairman of HAMEE, pointed out that letting THACO process an order alone lacks cost optimization, given the disadvantageous location of the automobile corporation’s production plant in central Quang Nam Province.

Meanwhile, joint production based on the strengths of each company will complement each other and foster growth, Nam said.

However, there needs to be a land and tax support mechanism to encourage such cooperation, according to Nam.

Nguyen Van Tri, general director of Lap Phuc Mechanical Company in District 7, Ho Chi Minh City, said that for firms participating in the supporting industry, success sometimes is just to produce small components with high accuracy and low cost. 

The most difficult challenge that mechanical companies encounter is not technical problems but the inability to find a way to join the value chain.

Based on Lap Phuc’s own experience in supplying molds to Tesla and General Motors, Tri said firms that want to join the chain must be nominated by a third party — either an investor or a reputable agency. 

The enterprises then go through a very thorough negotiation and research process carried out by their partners before being admitted to the chain.

Meanwhile, most companies are afraid to make big investments because the mechanical engineering industry is highly capital-intensive while they are weak in finding ways to join the chain.

They are struggling to find a development direction owing to this obstacle, not necessarily because of low levels of technology.

 

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Source: https://tuoitrenews.vn/news/business/20220803/vietnamese-enterprises-exhilarated-by-synergy-from-cooperation-plan/68408.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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