The revenue and profit of Hoa Sen Group (code: HSG) continues reducing sharply despite the closing of a lot of branches. Hoa Sen blamed its bad performance on price fluctuations The financial statement of the second quarter of the company's fiscal year reported VND6.9 trillion ($300 million) in revenue and VND54 billion ($2.35 million) in pre-tax profit, down 10 and 53 per cent on-year, respectively. The revenue and pre-tax profit accumulated during the first six months of the fiscal year were estimated at VND14.48 trillion ($629.56 million) and VND156 billion ($6.8 million), down 7.5 and 70 per cent on-year. In the documents sent to shareholders, HSG’s leaders explained the bad business results that the price of steel in the world and in the country is in constant flux. In fact, the gross profit margin in the first three months was 11.3 per cent, lower than the 13.5 per cent of the same period last year, so gross profit declined by 44 per cent, while revenue reduced by … [Read more...] about Hoa Sen wallowing in debts
Bad debt expense
This is because the disposal of problem assets improves the banks’ asset quality and removes a drag on their profitability. Asia Commercial Bank (ACB) has been the latest local lender to have fully written down bonds issued by the Vietnam Asset Management Company (VAMC). Before it, Vietcombank, Techcombank and Military Bank, successfully wrote down their VAMC bond exposures from their balance sheets in the fourth quarter of 2017. Techcombank successfully wrote down their VAMC bond exposures from their balance sheets in 2017 (Photo Techcombank) According to Moody’s, asset quality at most Vietnamese banks stabilised in 2017, helped by healthy macroeconomic conditions. The banks’ profitability also improved as higher-yielding retail loans increased, enabling them to allocate higher provisioning expenses to write off their VAMC bonds ahead of schedule. Additionally, enhanced legal frameworks, such as Resolution 42, which allows banks and … [Read more...] about Moody’s optimistic about bad debt resolution in Vietnam’s banks
The consecutive decrease in profit makes it questionable whether domestic private Hoa Sen Group can develop the $10.6-billion Ca Na steel project in the central province of Ninh Thuan. Hoa Sen Group may not be able to develop the $10.6 billion Ca Na steel complex? According to CafeBiz, steel maker Hoa Sen Group has published a bleak financial statement for the first quarter of 2018 (the second quarter of the 2017-2018 financial year ending in September this year). Accordingly, the firm reported VND7.66 trillion ($336.5 million) in revenue, up 23 per cent on-year. However, its net profit was only VND115 billion ($5.05 million), one-fifth of last year’s figure. The firm’s after-tax profit was only VND87 billion ($3.82 million). The major reason for this plunge is due to the increase of expenditures, including interest payments for debts. Notably, the corporation’s short-term debt increased by VND3.6 trillion ($158.1 million) to VND16.24 trillion ($713.5 … [Read more...] about Bad performance spells doom for $10.6 billion Hoa Sen Group steel complex?
The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.— Photo zing.vn Huynh Quang Khanh invests in real estate by leveraging credit. Seventy per cent of his investment comes from banks. He has borrowed VND1 billion at an interest rate of 9.5 per cent from a bank in Tan Phu District and also asked some of his relatives to borrow on his behalf from that bank. Khanh, 54, of HCM City’s Tan Phu District, said he was told by the lender that the interest rate had been increased to 12 per cent. “I am looking to sell some of my land to reduce the loans because I am afraid the interest rates would continue to rise and I will be unable to afford,” he said. While Khanh complains about the increase in the rates, Nguyen Cong Tang of Thu Duc District is unhappy that a bank refused to lend him 70 per cent of the value of a house he wants to buy. He said in the past the bank was always ready to lend him the money but now … [Read more...] about Banks begin tightening screws on property credit
THE GOVERNMENT SOCIALIST REPUBLIC OF VIET NAMIndependence - Freedom - Happiness No. 18/NQ-CP Hanoi, March 08, 2018 RESOLUTION THE GOVERNMENT’S REGULAR MEETING – FEBRUARY 2018 THE GOVERNMENT Pursuant to the Law on Organization of the Government dated June 19, 2015; Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government; Based on the discussion of the Cabinet members and the conclusion of the Prime Minister at the Government’s regular meeting in February 2018, held on March 01, 2018 DECIDES 1. Regarding the draft Law amending and supplementing to a number of articles of the Law on Special Amnesty The Ministry of Public Security shall assume the prime responsibility for, and coordinate with the Ministry of Justice, the Government Office and concerned ministries and agencies in, collecting comments of the Government members and verification results of the Government … [Read more...] about The Government’s regular meeting in February 2018