Earlier, VRG’s charter capital after equitisation was expected to mount to VND40 trillion (US$1.76 billion), equivalent to four billion shares. Specifically, the rubber manufacturer planned to sell 475 million shares, equivalent to 11.88% of the speculated charter capital, through a public auction at the starting price of VND13.000 (US$0.57) per share. Additionally, the corporation plans to sell 11.88% of its charter capital to strategic investors, 1.22% to current employees at a discount price, and 0.02% to VRG’s trade union. According to this equitisation plan, the group expected to divest 25% of its charter capital, which was roughly equivalent to VND6.2 trillion (US$273.42 million). However, the government still planned to maintain its ownership of 75% at VRG, which would partly reduce the appeal of the stakes. In addition, strategic partners were also required to preserve their ownership at VRG for at least five years, which would further impact the group’s attractiveness, especially in light of the erratic price of natural rubber latex. Moreover, VRG’s price-to-earnings ratio (P/E) was also relatively high in comparison to the industry. In particular, the P/E of other rubber enterprises recorded at the final transaction session of 2017, including Phuoc Hoa Rubber JSC (PHR), Dong Phu Rubber JSC (DPR), and Tay Ninh Rubber JSC (TRC) were respectively 6.8, 5.8, and 6.8. However, the P/E of VRG for four billion shares after the equitisation process would be 17 if the company manages to exceeded its profit target of VND3 trillion (US$132.3 million). During 2013-2015, falling rubber prices significantly… [Read full story]
“The market is currently plagued by an imbalance insupply and demand,” the liner shipping company said in the Vietnam TradeReport covering the first three quarters of 2013. This report cited theCai Mep International Terminal (CMIT) in Ba Ria-Vung Tau province asone of the ports that copes with this major challenge. “The CMIT, the closest deep-water port to the manufacturing zones ofsouthern Vietnam and the open seas, presently finds itself in a marketthat is operating at around 30 percent utilization (two million TEUmoves a year), well below its six million TEU capacity. This comparespoorly to terminals in Europe and North America…... [read more]
Following high-speed railways and expressways, the deep-sea port development field in Vietnam is drawing special interest of Japanese investors.The Japanese-based Itochu Corporation officially asked the Ministry of Transport for a permit to cooperate with the Vietnam National Shipping Lines (Vinalines) to build Lach Huyen international port, Hai Phong City (in inception stage). Accordingly, the Japanese investor and Vinalines investment will invest US$165 million in the Component B, which includes building two container terminals, in the public private partnership (PPP) form. This proposal was put forth at a working meeting on seaport development cooperation attended by the Ministry of Transport of Vietnam…... [read more]
Currently, the volume of imported and exported goods of the Mekong River Delta ranges between 8 and 10 million tonnes per year, accounting for 17 percent of the total nationwide. However, seaports in the region only operate at 25-50 percent of their designed capacity and 70 percent of the region’s exported goods need to be shipped via ports in Ho Chi Minh City and Ba Ria – Vung Tau, which overloads road and port systems in the Southeast region. The main reason for this is limited passage caused by silting of estuaries in the Mekong River Delta. Heavy ships (over…... [read more]
Although rain eased on August 9, almost every main road was still in deep water, throwing traffic into chaos.The balancing lakes the city used to cope with heavy showers are well beyond capacity, rendering draining off any more water impossible. The 76km-long Nhue River that winds through Hanoi continues to swell and is likely to cause massive flooding in the city’s outlying areas. The Hanoi Sewerage and Drainage Limited Company and the municipal Flood and Storm Committee are considering opening Thanh Liet reservoir’s floodgates to decant an appropriate volume of water from the Nhue River into inner rivers and lakes.…... [read more]
This will be the first deep-water well to be drilled offshore this year.The geological and geophysical data of the well has been processed and hydrologic studies have been completed at drilling sites. The depth of the sea will exceed 1,600m at the drilling sites of the deep-water well.The two enterprises discussed with the Heads of Agreement the progress of the Nagumanovskoye (Orenburg region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields. In addition, the meeting touched upon the possibility of Gazprom acquiring a stake in Viet Nam's Dung Quat oil refinery and participating in the refinery's upgrade. It was suggested…... [read more]
