The first quarter of this year saw the Petroleum Equipment Assembly & Metal Structure Joint Stock Company (PXS)’s revenues plummet to a mere VNĐ18.5 billion (US$815,000), 94.4 per cent down year-on-year. — Photo cafef.vn The first quarter of this year saw the Petroleum Equipment Assembly & Metal Structure Joint Stock Company (PXS)’s revenues plummet to a mere VND18.5 billion (US$815,000), 94.4 per cent down year-on-year. It had been VND343.6 billion in the comparable period last year. Gross profit was down 94 per cent to VND2.85 billion, and the company ended VND20.1 billion in the red. Another oil company, Petrovietnam Drilling and Well Services Joint Stock Company (PV Drilling), reported a gross loss of VND201 billion. The Drilling Mud Joint Stock Company (DMC) reported a loss of VND12.8 billion. Market observers said the huge losses run up by the companies sent the prices of their shares plunging on the stock market. PXS has fallen by 41.1 per cent to … [Read more...] about Oil firms pile up losses, shares take beating
Business Beat
Fuel price hike threatens to raise VN inflation
The global price of oil has increased from US$60 per barrel early this year to $70 now, and the uptrend is forecast to continue.— Photo vov.vn This was the second increase in retail fuel prices this year. The global price of oil has increased from US$60 per barrel early this year to $70 now, and the uptrend is forecast to continue. Nguyen Bich Lam, director of the General Statistics Office, said international organisations have forecast average crude prices in 2018 to range at $70-80 per barrel. So domestic petrol prices are projected to increase by 5-15 per cent and have an impact of 0.28-0.64 percentage points on consumer prices. Vietnamese fuel prices are enormously impacted by global rates since the country imports 70 per cent of its fuel needs. Of course, as an exporter of crude, it also benefits when oil prices rise. Fuel prices have a bearing on the cost of most other products in the basket of goods that makes up the consumer price index (CPI). Two fuel price hikes in … [Read more...] about Fuel price hike threatens to raise VN inflation
Map of technology-driven taxi market likely to be redrawn as Uber pulls out
Ride-hailing firm Uber Technologies Inc recently agreed to sell its Southeast Asian business to bigger regional rival Grab, marking its second pull-out from an Asian market.— Photo tuoitre.vn Ride-hailing firm Uber Technologies Inc recently agreed to sell its Southeast Asian business to bigger regional rival Grab, marking its second pull-out from an Asian market. Uber will take a 27.5 percent stake in Singapore-based Grab and Uber CEO Dara Khosrowshahi will join Grab’s board. Grab was last valued at around US$6 billion. Grab provides transportation, food delivery, mobile payments and financial services and operates in 195 cities across Southeast Asia. The company claimed to have a 95 percent market share of the ride-hailing market last year when it announced plans to raise more than $2.5 billion from SoftBank and other investors. Uber’s withdrawal from the Asian market is expected to redraw the ride-hailing market including in Viet Nam. “What are the gains and … [Read more...] about Map of technology-driven taxi market likely to be redrawn as Uber pulls out
Banks begin tightening screws on property credit
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
Clean-up makes VN banks attractive to foreign investors
In December Hồ Chí Minh Development Joint Stock Commercial Bank (HDBank) had sold stakes to more than 76 foreign investors before listing.— Photo ndh.vn Since last year there has been a churn in the banking sector with some foreign investors selling their stakes in local banks and others buying in. France’s BNP Paribas, HSBC and Australia’s Commonwealth Bank have been among those pulling out. ANZ sold its retail banking division to Korea’s Shinhan Bank and Standard Chartered Bank sold its entire 8.75 per cent stake in Asia Commercial Bank. Analysts said foreign banks are merely pulling out to invest in more profitable markets. Some pointed out that Asian banks which enter Viet Nam seem to be more successful than their western counterparts. They attributed this to their better understanding of the local market and business culture. But even in the case of western funds, the flow is not one-way: Just this month Viet Nam Technological and Commercial … [Read more...] about Clean-up makes VN banks attractive to foreign investors