Vietnam energy giant tries to bail from sinking shipyard after years of debts and losses

After 25 years since re-establishment, Soc Trang province has achieved encouraging socio-economic development results. And, industry has made a spectacular breakthrough with a higher growth rate than the province’s GDP growth and thus contributing significantly to local industrialisation and modernisation. According to the Soc Trang Department of Industry and Trade, the province’s GDP growth averaged 10.52 per cent a year in 1993 to 2016 and the industry - construction sector climbed 14 per cent. Taking only industry into consideration, its industrial production value was only VND478 billion in 1992 but it soared to VND10,376 billion in 2015, with the average year on year growth of 14.32 per cent in this period. The value in 2016 was 16.16 per cent higher than in 2015. In addition to the spearhead processing industry, Soc Trang has great potential for developing energy industry such as thermal power, wind power and solar power. And, this industry is expected to open a new breakthrough direction for the province in some years to come. Typical energy projects include Long Phu Thermal Power Centre with three plants with a capacity of 4,320 MW covering 420 ha (Long Phu 1 with 1,200 MW invested by PetroVietnam Group and expected to have the first turbine generate electricity in 2018 and the second turbine to go into operation in 2019, Long Phu 2 with 1,320MW invested by TATA Power Group of India and expected to have the first turbine to start commercial power generation in…... [read more]

In the past time, effective investment promotion and business support have contributed to increasing the appeal of the investment environment and, more importantly, attracting many investors to Soc Trang province. The following interview with Ms Huynh Thi Ngoc Huong, Director of the Soc Trang Investment Promotion and Business Support Centre, will shed light on this issue. Hoang Lam reports. Soc Trang province possesses numerous advantages to attract investors. What are those advantages? Apart from the potential for agricultural development, industry and service are also the province’s strengths in investment attraction. Many big projects have been licensed into the province, including Long Phu 1 thermal power plant invested by Vietnam National Oil and Gas Group (PetroVietnam), Lac Hoa wind power plant (first phase) invested by Technology Development Construction Joint Stock Company (TDC), garment and textile projects invested by Tuntex Company, Best Way Company and Youngone Nam Dinh Co., Ltd. They have actively contributed to local Socio-economic development and created jobs for tens of thousands of workers. Besides, many other companies and investors are applying for investment projects in the province, for example Long Phu 2 thermal power plant invested by TATA Power Group (India), a wind power plant invested by Phu Cuong Group, Cong Ly wind power plant invested by Cong Ly - Construction - Trading - Tourism Co., Ltd. Furthermore, trade and tourism are also huge potential of Soc Trang to attract domestic and foreign investors. In addition to diverse resources for economic development, the Provincial Party…... [read more]

After being put on sale, if investors ignore Dung Quat Shipbuilding Co., Ltd., it will go bankrupt.   PetroVietnam is willing to let Dung Quat Shipbuilding Co., Ltd. fall without recovering its $221 million investment On July 25, PetroVietnam, the owner of Dung Quat Shipbuilding, submitted plans to deal with the ailing company to the government and the Ministry of Industry and Trade (MoIT). Notably, first, PetroVietnam will put the company on sale. In case the company proves unmarketable, the company will be permitted to go bankrupt and then the company’s assets will be sold through competitive bidding. PetroVietnam also asked MoIT to propose the prime minister to assign the State Audit of Vietnam to audit the dossiers of a 104,000 DWT tanker to determine its value in order to complete the handover between PetroVietnam and Vietnam Shipbuilding Industry Corporation (SBIC). PetroVietnam has been waiting for the authorities’ answer. Previously, Phan Tu Giang, director of Dung Quat Shipbuilding, said that the company has not stopped operating yet and the losses are accumulating. However, Nguyen Vu Truong Son, general director of PetroVietnam, said that going bankrupt is the best solution for Dung Quat Shipbuilding, although PetroVietnam will continue to bear Dung Quat Shipbuilding’s debt afterwards. However, if the company closes, the asset value that it acquires from bidding will still be lower than its debt, thus PetroVietnam will not recover its investment…... [read more]

The failing state-funded Dinh Vu polyester plant invested by PetroVietnam Petrochemical and Textile Fiber JSC (PVTex), a joint venture of PetroVietnam and Vietnam National Textile and Garment Group (Vinatex), will be pushed to the brink of bankruptcy if foreign investors refuse to co-operate with PVTEX to revise the plant’s operations. Dinh Vu polyester plant is in desperate need to revise operation, which is currently blocked by a missing ministerial approval According to newswire Dantri, PetroVietnam has been seeking approval from the government and the Ministry of Industry and Trade (MoIT) for its plans to co-operate with foreign investors to revise Dinh Vu polyester plant. During the wait, PetroVietnam proposed Fortrec Chemicals company from Singapore to extend the deadline for co-operation proposals in trading and manufacturing between the two parties (the initial deadline was July 31, 2017). On August 8, Fortrec stated that it took too long to wait for the answer from Vietnamese authorities and requested PetroVietnam to submit its proposal before the authorities issue approval. Earlier in August 2016, MoIT urged PetroVietnam to accelerate the negotiation process with the Singaporean partner to reach a compromise and restart Dinh Vu polyester plant. At the time, Fortrec Chemicals said that if the plant’s machines operate smoothly and the plant manufactures a product volume meeting the designed capacity, Fortrec would supply material for the test operation period, while simultaneously agreeing to sign a two-year co-operation contract with…... [read more]

Former OceanBank Chairman Ha Van Tham in court (Source: VNA) Hanoi (VNA) - The People’s Court of Hanoi on August 28 opened the first instance hearing for former Chairman of the Board of Directors of the Ocean Commercial Joint Stock Bank (OceanBank) Ha Van Tham and other 50 defendants for serious violations of the State’s monetary policies. The trial saw the largest number of people being summoned, numbering 727, including civil plaintiffs, those who were involved in interests and duties, witnesses, and assessors. In one of the biggest economic crime cases in Vietnam, Tham and other 50 former executives  and employees of the bank are facing charges of appropriating assets, breaching loan regulations of credit institutions, abusing positions and power while on duty, and intentionally acting against State regulations on economic management causing serious consequences. Among 51 defendants, seven were detained and 44 others were out on bail. Of 57 lawyers defending the defendants, two pled for Tham and four others defended former OceanBank General Director Nguyen Xuan Son. Three were absent due to health reasons, including former Chairwoman of the Board of Directors of Phu My investment and development company Hua Thi Phan, former Director of OceanBank’s accounting and domestic transaction unit Vu Thi Thuy Duong, and former Director of OceanBank’s Au Co transaction office Nguyen Viet Hien. According to the Supreme People’s Procuracy, when working as OceanBank’s Chairman of the Board of Directors, Tham and his accomplices…... [read more]

The benchmark VN-Index edged up 0.3 per cent to close Monday morning at 773.9 points as investors continued to show confidence in the market outlook. — Photo tinnhanhchungkhoan.vn Shares advanced on the two national stock exchanges on Monday morning as investors continued to show confidence in the market outlook. On the HCM Stock Exchange, the VN-Index edged up 0.3 per cent to 773.9 points. Large-cap stocks maintained market momentum as 17 of the top 30 largest shares by market value and liquidity on the southern bourse gained value and only 10 tumbled. Gainers expanded to various sectors, including finance, steel manufacturing, energy and real estate, such as Vietcombank, lender BIDV, Bao Viet Holdings and PV Gas, as well as VinGroup, Hoa Phat Group, Masan Group, Kido Group and Kinh Bac City Development. Real estate developer FLC Group was among the most significant gainers with a rise of 6.2 per cent to VND9,100 per share in morning trade. FLC chairman Trinh Van Quyen has registered to purchase 11 million FLC shares from September 15 to October 15 this year. On the defensive side, food-beverage firms such as Vinamilk and Sabeco slumped, along with DHG Pharmaceutical and PetroVietnam Fertiliser and Petrochemicals, which weighed on the market's rise. On the Ha Noi Stock Exchange, the HNX-Index was up 0.6 per cent to 103.2 points. A total of 183 million shares worth VND2.8 trillion (US$123.3 million) were traded on the two markets. Afternoon…... [read more]

Hundreds of people were summoned to court in Hanoi on Monday as the much-anticipated Ocean Bank trial involving over $94 million in losses was resumed. The biggest courtroom in Hanoi was packed as Ha Van Tham, the private bank’s former chairman, stood behind bars with dozens of his subordinates. Defendants stand at the trial in Hanoi on Monday, including Ocean Bank's former chairman Ha Van Tham (R). Photo by VnExpress/Xuan Hoa Among the 51 defendants are former members of state oil and gas giant PetroVietnam, the central bank and Vietnam Construction Bank, which was taken over by the government in 2015 following continued losses. Around 700 other people including more than 50 lawyers and hundreds of those who had benefited from the misuse of money were also in court. Given the number of attendants, the trial could go down in history as one of the biggest in Vietnam. It also broke into New York Times’ morning update of things you should know to start the day. The case was brought to trial for the first time in February but was adjourned after the judge ordered further investigations. Following the new probe, Tham is further charged with embezzling property, besides counts of “breaking regulations on lending activities at credit institutions” and “deliberately violating state regulations on economic management, causing serious consequences”. Ha Van Tham, former chairman of Ocean Bank, is escorted to court in Hanoi in February. Photo by VnExpress The new indictment also brings in four new defendants, including Pham Cong Danh,…... [read more]

Hundreds of people were summoned to court in Hanoi on Monday as the much-anticipated Ocean Bank trial involving over $94 million in losses was resumed. The biggest courtroom in Hanoi was packed as Ha Van Tham, the private bank’s former chairman, stood behind bars with dozens of his subordinates. Defendants stand at the trial in Hanoi on Monday, including Ocean Bank's former chairman Ha Van Tham (R). Photo by VnExpress/Xuan Hoa Among the 51 defendants are former members of state oil and gas giant PetroVietnam, the central bank and Vietnam Construction Bank, which was taken over by the government in 2015 following continued losses. Around 700 other people including more than 50 lawyers and hundreds of those who had benefited from the misuse of money were also in court. Given the number of attendants, the trial could go down in history as one of the biggest in Vietnam. It also broke into New York Times’ morning update of things you should know to start the day. The case was brought to trial for the first time in February but was adjourned after the judge ordered further investigations. Following the new probe, Tham is further charged with embezzling property, besides counts of “breaking regulations on lending activities at credit institutions” and “deliberately violating state regulations on economic management, causing serious consequences”. Ha Van Tham, former chairman of Ocean Bank, is escorted to court in Hanoi in February. Photo by VnExpress The new indictment also brings in four new defendants, including Pham Cong Danh,…... [read more]

The Hanoi People's Court has resumed the trial of leaders and employees of Oceanbank, one of the biggest economic criminal proceedings in Vietnam to date, after acquiring additional information. RELATED CONTENTS: Bank chairman admits violations Former Ocean Bank executives stand trial OceanBank committed to ensuring liquidity after arrest Vietnam banking tycoon detained on suspicion of fraud This morning, on August 28, the Hanoi People’s Court has resumed the trial of leaders and employees of Ocean Commercial One Member Limited Liability Bank (Oceanbank). The case was opened in March 2017 and proved inconclusive as the jury returned records and asked for clarification on several issues. After prompt investigation, the investigating police agency (the Ministry of Public Security) has issued the investigation conclusions, followed by the Supreme People’s Procuracy issuing indictments against former chairman Ha Van Tham and accomplices. Four more individuals were put on trial since then, including Hua Thi Phan (former chairman of Phu My Development Investment JSC), Pham Cong Danh (former chairman of Thien Thanh Group Co., Ltd.), Hoang Thi Hong Tu (former chairman of BIDV Securities JSC, or BSC Vietnam), and Tran Van Binh (former CEO of Trung Dung Trading and Production Co., Ltd.). The total number of defendants in this trial was 51. Additionallty, Nguyen Xuan Son (former general director of Oceanbank) was charged with embezzlement. According to Article 278 of…... [read more]

Investors conduct transactions at the Bao Viet Stock Jsc Exchange in Ha Noi. — VNA/VNS Photo Tran Viet Vietnamese shares have risen during the last three sessions on both the local exchanges, but this rally is not expected to sustain through the last trading week of August. This is because investors will try to accrue profits from their recent gains, while supportive business-market information is lacking, according to experts. The benchmark VN Index on the HCM Stock Exchange gained 0.24 per cent to finish the last trading week at 771.63 points. It has rallied totally 1.4 per cent over the last three sessions. The HNX Index on the Ha Noi Stock Exchange added 0.34 per cent to end Friday at 102.64 points, extending its gain for a third day with a total growth of 1.8 per cent. The three-day rallies of the two indices helped them recoup the losses incurred in the first two sessions of the week and end the trading week higher than the previous one. The VN Index posted a weekly gain of 0.3 per cent, and the HNX Index rose 1.8 per cent week on week. The three-day rallies on both the local exchanges were attributed to the improvement in the bank stocks, which benefited from a draft circular released by the State Bank of Viet Nam to collect public opinions on the extension of the schedule requiring commercial banks to reduce their maximum ratio of…... [read more]




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