Vietnam National Shipping Lines (Vinalines) said that it continued to suffer a VND1.439 trillion ($69.2 million) loss in the first half of 2012 due to falling demand for freight transportation.
The total output of freight transportation reached 15.3 million tons in January-June, down 15 percent over the same period last year.
Its total revenue reached VND11.614 trillion, down 3 percent year on year.
The loss caused by two former Vinashin’s subsidiaries alone, Vinashin Lines Co Ltd and BISCO, amounted to around half of the sum, or some VND700 billion, said Vinalines.
Moreover, the losses at Falcon Shipping Co (Falcon) and Vietnam Ocean Shipping Joint Stock Company (VOSCO) were VND267 billion and VND102.7 billion respectively.
Explaining the cause of a loss, Vinalines added that in addition to falling demand, freight charges are also in a downtrend for a long time.
As a result, the local shipping industry had to cope with the excess tonnage supply in most markets.
Besides, Vinalines must also address its internal difficulties during the same period, it said.
The State Audit of Vietnam has found that Vinalines invested VND672 billion, or 10.37 percent of ist chartered capital, into non-core areas in 2010, according to a state budget auditing for 2011codnucted by the agency.
The loss-ridden giant shipping firm, whose former chairman is wanted for economic offences, is currently burdened with a total debt of more than VND43 trillion ($2 billion), according to a government report submitted to the National Assembly last month.
As of the end of last year Vinalines had total assets worth VND55.85 trillion, and VND9.41 trillion worth of equity, according to the report.
Short-term unsettled debt of the debt-stricken shipping line stood at VND9.3 trillion, and long-term, VND33.82 trillion.
Of these, VND34.55 trillion come from its ineffective investment in buying vessels, constructing seaports, and shipyard activities. The company also had an overdue debt of VND207 billion.
19 out of 21 state-owned enterprises (SOEs) enjoyed profits except for Vietnam Electricity Group (EVN) and Vietnam Waterway Construction Corp posting loss of VND8.42 trillion and VND73.5 billion for 2010 respectively despite rising difficulties such as soaring interest rates and inflation, said the agency.
Also, 11/21 SOEs largely depend on self-acquired capital and loan capital, some of which have high debt-to-equity ratio, thus would be exposed to financial imbalances.
Source: Tuoi Tre
|< Prev||Next >|
» Former Vinalines head faces trial for corruption
» State groups owe over $64.3 billion
» Two former Vinalines leaders prosecuted for corruption
Latest Category Posts
- Vietnam levies anti-dumping duty on steel imports after lawsuits
- Slower growth in manufacturing sector
- Ministries to probe sharp gas price hike
- BIDV offers infrastructure funds
- Time for supermarket chains
- Australia interrupted cow exports to VN to clarify dumping rumor
- Vietnamese goods faked in China, sold in Vietnam
- Firms face huge losses as gas prices skyrocket
- Vietnam is SE Asia’s fastest growing smartphone market: GfK
- Thousands of workers won’t have Tet bonus
Popular Category Posts
- French businesses hails Vietnam’s investment environment
- The South Korean wave in Vietnam
- Exporters get support to enter EU market
- FDI sector lifts up hardware industry
- Vietnam may cut down rice land to increase incomes for farmers
- MoIT asked to rethink hydro-power plants
- A lot of FDI enterprises declare huge losses
- Four firms in HCM City face thorough inspection after salary theft scam
- More FDI flows into science-technology
- Restoring order in shrimp material export: An urgent need
- Ornamental fish make profit splash
- Showpiece casino lacking investors
- National economy grows by 5.14% in 9 months
- Vermont welcomes VN investors to seize opportunities
- US experts advise Vietnam how to lift aviation industry to new heights
- Health Ministry tries to keep a rein, but formula milk price remains restive
- $250 million to build a Vietnam-Laos bauxite pipe
- Vietnamese rice exporters seek ways to boost sales
- Chinese or American?
- Local firms lack knowledge of TPP trade agreement