Vietnam's top forwarder Gemadept Corp (GMD) forecast its profit next year would jump 50 percent from this year as it puts an office building, a port and a warehouse into operation.
"Even if we cannot increase our current business, next year we will have, maybe, a 50-percent profit increase compared to 2007," Gemadept CEO Do Van Minh told Reuters in an interview on Monday at the company's Ho Chi Minh City headquarters.
Minh did not say if the forecast profit was pre-tax or net, but Gemadept has projected an increase in net profit this year of 25 percent to 30 percent from last year's net 156 billion dong ($9.7 million).
Source: Reuters
Showing posts with label Transportation. Show all posts
Showing posts with label Transportation. Show all posts
Tuesday, September 11, 2007
Wednesday, September 05, 2007
Vinashin inks major deals with Malaysian partners
State-owned Vietnam Shipbuilding Industry Group, or Vinashin, has said it will set up new joint ventures with the Malaysian-based budget airline AirAsia and Lion Group to form a new carrier and build a steel mill in central Vietnam.
A Vinashin official told the Daily that a letter of intent for the establishment of a low-cost carrier in Vietnam was signed between AirAsia and Vinashin Group in the Malaysian capital last Friday.
AirAsia chief executive officer Tony Fernandes and Vinashin chairman and CEO Pham Thanh Binh signed the agreement in the Malaysian capital of Kuala Lumpur, with the participation of Vietnam's Prime Minister Nguyen Tan Dung who was there for the celebration of Malaysia's 50th nationhood.
The airline venture will also make AirAsia the second foreign investor to hold a stake in a Vietnamese airline after Australia's Qantas Airways Ltd., which spent US$50mil acquiring a 30% stake in Pacific Airlines in April this year.
The new carrier, which will be called Vina AirAsia, will initially have a fleet of nine, aircraft with the shipbuilder holding a 70% stake and AirAsia the remaining 30%.
In the letter of intent, AirAsia and Vinashin will establish a joint-venture company with total estimated capital of US$30mil. Both will establish the low-cost airline in Vietnam based on AirAsia's successful business model.
This deal is another move taken by AirAsia to further tap the increasingly lucrative civil aviation market in Vietnam.
The planned venture will include securing a license to operate the new Vietnamese airline to serve domestic, regional and international routes.
According to the letter of intent, Vinashin will help the joint venture secure regulatory approval from the aviation authority as well as concessions, permits, licenses, certificates and any other approval necessary for the working of the new airline.
Meanwhile, AirAsia will help acquire aircraft at the most competitive price and will also provide aviation and other technical expertise, technology transfer in the purchase and leasing of aircraft, engineering and maintenance services, pilot and cabin crew training, and airline marketing, distribution, franchising and branding skills.
Both two sides plan to formally sign a contract on September 20 and Vina AirAsia is planed to begin service in July 2008.
Under Vietnamese law, foreign investors are permitted to own up to 49% of a joint-stock air carrier. Currently, Vietnam is home to three airlines - Vietnam Airlines, Pacific Airlines and Vasco.
AirAsia has been successful in the Hanoi-Bangkok and the Hanoi-Kuala Lumpur services though it only launched the first route in October 2005 and the other in October last year.
The seat occupancy averages 80% for the three daily Hanoi-Bangkok flights and the two daily flights between Hanoi and Kuala Lumpur.
AirAsia is now preparing to begin the service to HCMC, hopefully this year to attract more passengers traveling between Vietnam and the two countries.
"The growth potential in Vietnam's air travel market is significant and we are very excited to be working with a colossal corporation in Vietnam to develop this opportunity," said Fernandes of AirAsia.
"We are very confident that both parties will enjoy not only a productive and profitable outcome together but also the exchange of fresher ideas, skills and technologies."
On the same day, Vinashin signed a deal with Malaysia's Lion Group to build a giant steel mill worth up to US$7.3bil in central Vietnam.
The facility will be built in Ninh Thuan Province to produce eight million tons of steel a year. Investment would be US$2.8bil for the first phase while another US$4.5bil would be spent in the second phase.
The signing of this deal was also witnessed by Prime Minister Dung.
Source: VNE
A Vinashin official told the Daily that a letter of intent for the establishment of a low-cost carrier in Vietnam was signed between AirAsia and Vinashin Group in the Malaysian capital last Friday.
AirAsia chief executive officer Tony Fernandes and Vinashin chairman and CEO Pham Thanh Binh signed the agreement in the Malaysian capital of Kuala Lumpur, with the participation of Vietnam's Prime Minister Nguyen Tan Dung who was there for the celebration of Malaysia's 50th nationhood.
The airline venture will also make AirAsia the second foreign investor to hold a stake in a Vietnamese airline after Australia's Qantas Airways Ltd., which spent US$50mil acquiring a 30% stake in Pacific Airlines in April this year.
The new carrier, which will be called Vina AirAsia, will initially have a fleet of nine, aircraft with the shipbuilder holding a 70% stake and AirAsia the remaining 30%.
In the letter of intent, AirAsia and Vinashin will establish a joint-venture company with total estimated capital of US$30mil. Both will establish the low-cost airline in Vietnam based on AirAsia's successful business model.
This deal is another move taken by AirAsia to further tap the increasingly lucrative civil aviation market in Vietnam.
The planned venture will include securing a license to operate the new Vietnamese airline to serve domestic, regional and international routes.
According to the letter of intent, Vinashin will help the joint venture secure regulatory approval from the aviation authority as well as concessions, permits, licenses, certificates and any other approval necessary for the working of the new airline.
Meanwhile, AirAsia will help acquire aircraft at the most competitive price and will also provide aviation and other technical expertise, technology transfer in the purchase and leasing of aircraft, engineering and maintenance services, pilot and cabin crew training, and airline marketing, distribution, franchising and branding skills.
Both two sides plan to formally sign a contract on September 20 and Vina AirAsia is planed to begin service in July 2008.
Under Vietnamese law, foreign investors are permitted to own up to 49% of a joint-stock air carrier. Currently, Vietnam is home to three airlines - Vietnam Airlines, Pacific Airlines and Vasco.
AirAsia has been successful in the Hanoi-Bangkok and the Hanoi-Kuala Lumpur services though it only launched the first route in October 2005 and the other in October last year.
The seat occupancy averages 80% for the three daily Hanoi-Bangkok flights and the two daily flights between Hanoi and Kuala Lumpur.
AirAsia is now preparing to begin the service to HCMC, hopefully this year to attract more passengers traveling between Vietnam and the two countries.
"The growth potential in Vietnam's air travel market is significant and we are very excited to be working with a colossal corporation in Vietnam to develop this opportunity," said Fernandes of AirAsia.
"We are very confident that both parties will enjoy not only a productive and profitable outcome together but also the exchange of fresher ideas, skills and technologies."
On the same day, Vinashin signed a deal with Malaysia's Lion Group to build a giant steel mill worth up to US$7.3bil in central Vietnam.
The facility will be built in Ninh Thuan Province to produce eight million tons of steel a year. Investment would be US$2.8bil for the first phase while another US$4.5bil would be spent in the second phase.
The signing of this deal was also witnessed by Prime Minister Dung.
Source: VNE
Thursday, August 16, 2007
VOSCO to raise $46 mln in IPO
Vietnamese shipping firm VOSCO said on Thursday it would sell about 50 million shares, or a third of the company, in an initial public offering next month to raise at least $46.2 million for fleet expansion.
The shares would be sold in an auction at the Hanoi over-the-counter exchange on Sept. 12 starting at 15,000 dong ($0.9) each, the company said in a statement published by the State Securities Commission.
Foreign investors were not allowed to participate in the auction, the statement said without giving a reason.
Shares in VOSCO, which is 60-percent state owned, were being traded in the unofficial markets at 25,000-40,000 dong ($1.5-$2.5), brokers said.
VOSCO chief executive Vu Huu Chinh said in a prospectus that revenues were expected to grow 14 percent annually in the next three years to about 2.54 trillion dong ($157 million) and forecast a net profit of $6.5 million by 2010.
The Haiphong City-based company, whose full name is Vietnam Ocean Shipping Co, operates 25 ocean-going vessels, including four small oil product tankers, and plans to spend $317 million on 12 more vessels by 2011.
Source: Reuters
The shares would be sold in an auction at the Hanoi over-the-counter exchange on Sept. 12 starting at 15,000 dong ($0.9) each, the company said in a statement published by the State Securities Commission.
Foreign investors were not allowed to participate in the auction, the statement said without giving a reason.
Shares in VOSCO, which is 60-percent state owned, were being traded in the unofficial markets at 25,000-40,000 dong ($1.5-$2.5), brokers said.
VOSCO chief executive Vu Huu Chinh said in a prospectus that revenues were expected to grow 14 percent annually in the next three years to about 2.54 trillion dong ($157 million) and forecast a net profit of $6.5 million by 2010.
The Haiphong City-based company, whose full name is Vietnam Ocean Shipping Co, operates 25 ocean-going vessels, including four small oil product tankers, and plans to spend $317 million on 12 more vessels by 2011.
Source: Reuters
Monday, July 23, 2007
Why are aviation shares not attractive?
While investors are hunting for shares of the companies in the fields of banking, finance, oil and gas, real estate or rubber, they seem to ignore aviation companies’ shares, though aviation is thought to be an industry with high potential.
The Vietnam Airlines Corporation (VNA) has completed the equitisation of all its 14 independent companies. As planned, by 2010, the state will not hold the controlling stakes in the companies any more. Noi Bai Air Catering Joint Stock Company, Airimex (import – export company), the Noi Bai Cargo Terminal Service Company (NCTS), and Noi Bai Airport Service Company (NASCO) once were the well known names among OTC investors, but they later did not draw the attention of investors any more when the investors had many other choices.
Though Vietnam Airlines’ companies have been equitised, none of them has listed on the bourse yet. Only two of the 14 equitised companies, NASCO and NCTS, seem to have well prepared for listing on the stock market, while other companies are still building the roadmap and preparing for the listing.
However, NASCO and NCTS both are facing big difficulties. The former cannot meet the requirement on chartered capital (its plan to raise chartered capital by issuing more shares has not been approved by VNA). Therefore, though having met other requirements: became a public company, had three consecutive profitable years after the equitisation, and had no cumulative losses, it still cannot list on the bourse.
One of the reasons that makes aviation shares unattractive in the eyes of investors is the difficulty in trading and assigning shares (the shares have been held by the shareholders who are the staffs of the companies, and will only be able to transfer shares after a certain time).
The prices of several share items of the companies belonging to VNA are as follows: Airimex VND40,000/share, APLAPCO VND46,000, VASCO VND73,000, but the successful transactions were very few.
An analyst said that aviation shares are not attractive because most of the companies have just been equitised, have not listed on the bourse yet, and have few transactions. In addition, many outside investors could not join the auctions of the companies’ shares or become shareholders of the companies. Meanwhile, the state still holds the controlling stakes in these companies, except the Air Plastics Joint Stock Company. Big investors still hesitate to inject money in the companies because they cannot hold a big proportion of shares and cannot have a decisive voice in the operation of the companies.
Source: VNE
The Vietnam Airlines Corporation (VNA) has completed the equitisation of all its 14 independent companies. As planned, by 2010, the state will not hold the controlling stakes in the companies any more. Noi Bai Air Catering Joint Stock Company, Airimex (import – export company), the Noi Bai Cargo Terminal Service Company (NCTS), and Noi Bai Airport Service Company (NASCO) once were the well known names among OTC investors, but they later did not draw the attention of investors any more when the investors had many other choices.
Though Vietnam Airlines’ companies have been equitised, none of them has listed on the bourse yet. Only two of the 14 equitised companies, NASCO and NCTS, seem to have well prepared for listing on the stock market, while other companies are still building the roadmap and preparing for the listing.
However, NASCO and NCTS both are facing big difficulties. The former cannot meet the requirement on chartered capital (its plan to raise chartered capital by issuing more shares has not been approved by VNA). Therefore, though having met other requirements: became a public company, had three consecutive profitable years after the equitisation, and had no cumulative losses, it still cannot list on the bourse.
One of the reasons that makes aviation shares unattractive in the eyes of investors is the difficulty in trading and assigning shares (the shares have been held by the shareholders who are the staffs of the companies, and will only be able to transfer shares after a certain time).
The prices of several share items of the companies belonging to VNA are as follows: Airimex VND40,000/share, APLAPCO VND46,000, VASCO VND73,000, but the successful transactions were very few.
An analyst said that aviation shares are not attractive because most of the companies have just been equitised, have not listed on the bourse yet, and have few transactions. In addition, many outside investors could not join the auctions of the companies’ shares or become shareholders of the companies. Meanwhile, the state still holds the controlling stakes in these companies, except the Air Plastics Joint Stock Company. Big investors still hesitate to inject money in the companies because they cannot hold a big proportion of shares and cannot have a decisive voice in the operation of the companies.
Source: VNE
Friday, July 13, 2007
Gemadept licensed to build $229 mln port
The Vietnamese freight forwarder Gemadept has obtained the license Thursday to build a VND3.7 trillion (US$229 million) international port in central Vietnam .
The Gemadept Nhon Hoi International Port Joint Stock Company will develop the Nhon Hoi International Port in Binh Dinh province’s Nhon Hoi Economic Zone (EZ).
The two main 480-meter berths will be built in the first stage, allowing the port to accommodate 30,000-ton ships.
The port is designed to have annual cargo throughput of 3 million tons by 2010 and 12 million tons by 2020 when in full performance.
The project is expected begin by the end of September.
The VND70 billion Gemadept Nhon Hoi International Port Joint Stock Company is a joint venture between the Gemadept Corp, Vietnam largest listed freight forwarder, which holds 55 percent of the company, and the Saigon-Nhon Hoi Industrial Park Joint Stock Company and other partners.
The Ho Chi Minh City-based Gemadept Corporation is engaged in one other joint venture in Vietnam that is building a $35 million deepwater seaport in the central Dung Quat EZ – home of the country’s first oil refinery.
The 12,000-ha Nhon Hoi EZ was developed to house industries including agricultural processing, forestry and aquatic products, construction materials manufacturing, seaport logistics, petro-chemistry, manufacturing electronic goods and electric materials; textiles, garments and footwear for export.
The EZ has attracted numbers of projects worth VND9.5 trillion to date focusing on commercial-service-tourism complex, IP infrastructure and telecoms.
Source: Thanh Nien
The Gemadept Nhon Hoi International Port Joint Stock Company will develop the Nhon Hoi International Port in Binh Dinh province’s Nhon Hoi Economic Zone (EZ).
The two main 480-meter berths will be built in the first stage, allowing the port to accommodate 30,000-ton ships.
The port is designed to have annual cargo throughput of 3 million tons by 2010 and 12 million tons by 2020 when in full performance.
The project is expected begin by the end of September.
The VND70 billion Gemadept Nhon Hoi International Port Joint Stock Company is a joint venture between the Gemadept Corp, Vietnam largest listed freight forwarder, which holds 55 percent of the company, and the Saigon-Nhon Hoi Industrial Park Joint Stock Company and other partners.
The Ho Chi Minh City-based Gemadept Corporation is engaged in one other joint venture in Vietnam that is building a $35 million deepwater seaport in the central Dung Quat EZ – home of the country’s first oil refinery.
The 12,000-ha Nhon Hoi EZ was developed to house industries including agricultural processing, forestry and aquatic products, construction materials manufacturing, seaport logistics, petro-chemistry, manufacturing electronic goods and electric materials; textiles, garments and footwear for export.
The EZ has attracted numbers of projects worth VND9.5 trillion to date focusing on commercial-service-tourism complex, IP infrastructure and telecoms.
Source: Thanh Nien
Wednesday, July 11, 2007
Over 3.83 million passengers fly Vietnam Airlines
National carrier Vietnam Airlines safely delivered more than 3.83 million passengers in the first half of this year, a year-on-year increase of 16.5 percent.
The figure includes 2.22 million domestic passengers, a rise of 23.9 percent over the same period last year, and 1.6 million international passengers, a year-on-year increase of 6.9 percent.
The airlines also carried over 53,385 tonnes of cargo, fulfilling 44.7 percent of its set targets and operated 31,140 safe flights.
During the six-month period, Vietnam Airlines posted estimated revenues of 9.38 trillion VND (586.3 million USD). Its contribution to the State budget was close to 120 billion VND (7.5 million USD).
Source: VNA
The figure includes 2.22 million domestic passengers, a rise of 23.9 percent over the same period last year, and 1.6 million international passengers, a year-on-year increase of 6.9 percent.
The airlines also carried over 53,385 tonnes of cargo, fulfilling 44.7 percent of its set targets and operated 31,140 safe flights.
During the six-month period, Vietnam Airlines posted estimated revenues of 9.38 trillion VND (586.3 million USD). Its contribution to the State budget was close to 120 billion VND (7.5 million USD).
Source: VNA
Vietindebank plans to buy 4 Boeing 787s
Vietnam's state-run Vietindebank said on Wednesday it planned to purchase four Boeing 787 planes to lease to domestic airlines.
"We have applied for permission from the government to establish a company to lease planes," a spokesman for the Hanoi-based bank said.
He said the company would be fully operational by 2015.
The country's flag carrier Vietnam Airlines has placed an order for four Boeing 787 planes with the first delivery scheduled next year.
The bank, Vietnam's second-largest bank by assets, said on Wednesday it planned to issue shares to the public for the first time in the last quarter of this year.
Vietindebank, which has hired U.S. investment bank Morgan Stanley as an adviser on its initial public offering, said it planned to list overseas after its domestic listing, but declined to give further details.
Source: Reuters
"We have applied for permission from the government to establish a company to lease planes," a spokesman for the Hanoi-based bank said.
He said the company would be fully operational by 2015.
The country's flag carrier Vietnam Airlines has placed an order for four Boeing 787 planes with the first delivery scheduled next year.
The bank, Vietnam's second-largest bank by assets, said on Wednesday it planned to issue shares to the public for the first time in the last quarter of this year.
Vietindebank, which has hired U.S. investment bank Morgan Stanley as an adviser on its initial public offering, said it planned to list overseas after its domestic listing, but declined to give further details.
Source: Reuters
Thursday, June 21, 2007
Taxi operator Mai Linh sees '07 profit up 13 fold
Major Vietnam taxi firm Mai Linh Group (MLC) said on Thursday it expected its 2007 net profit to jump nearly 13-fold from last year to 173.3 billion dong ($10.7 million) due to its enlarged fleet.
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
Saturday, June 16, 2007
Vietnam bank, shipyard join hands to diversify
The state-run Vietcombank and major shipbuilder Vinalines inked a deal Tuesday to make joint investments.
Vietcombank, as the bank is known commonly, agreed to invest in Vinalines’s shipbuilding and seaport construction projects.
Vinalines plans to build two mammoth port complexes in the central Khanh Hoa province and northern Hai Phong city.
The two sides are also looking for more partners for the two projects.
In Khanh Hoa they will build a modern international port at an estimated cost of $169 million. Work is set to start on the first two berths later this year.
Van Phong Port plays a crucial role in the economic zone of the same name covering 150,000ha of land and water surface in the bay.
The other project, the Lach Huyen International Seaport, is expected to cost VND27 trillion ($1.6 billion) for infrastructure and berths. It will serve as an international gateway and a large transit port for the whole of northern Vietnam.
It is designed to accommodate vessels of between 60,000 and 80,000 TEUs (twenty-foot-equivalent units) and have annual cargo throughput of between 50 and 60 million tons when in full perform.
The first two berths are expected to be ready in 2010.
Duong Tri Dung, Vinalines chairman, said the tie-up with the bank was part of the corporation’s diversification strategy as well as equitization process. It planned to enter finance, banking, insurance, securities, electricity, infrastructure, real estate, and tourism.
The group was set to become one of the region’s top maritime groups by 2010 with revenues of more than VND20 trillion ($1.2 billion).
It plans to raise VND51 trillion ($3.2 billion) between 2006 and 2010 to invest in its shipping fleet and upgrade its ports.
This year it targeted to transport 24.8 million tons of cargo – a year-on-year jump of 8%, a record revenue of VND12 trillion ($750 million).
The company plans to purchase 29 more vessels with total capacity of 692,000 DWT (dead-weight-tons).
Vietcombank – the country’s second largest by assets is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year. It is in the process to source out strategic foreign investors to participate in managing the structure of the bank.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs. The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
Source: Thanh Nien
Vietcombank, as the bank is known commonly, agreed to invest in Vinalines’s shipbuilding and seaport construction projects.
Vinalines plans to build two mammoth port complexes in the central Khanh Hoa province and northern Hai Phong city.
The two sides are also looking for more partners for the two projects.
In Khanh Hoa they will build a modern international port at an estimated cost of $169 million. Work is set to start on the first two berths later this year.
Van Phong Port plays a crucial role in the economic zone of the same name covering 150,000ha of land and water surface in the bay.
The other project, the Lach Huyen International Seaport, is expected to cost VND27 trillion ($1.6 billion) for infrastructure and berths. It will serve as an international gateway and a large transit port for the whole of northern Vietnam.
It is designed to accommodate vessels of between 60,000 and 80,000 TEUs (twenty-foot-equivalent units) and have annual cargo throughput of between 50 and 60 million tons when in full perform.
The first two berths are expected to be ready in 2010.
Duong Tri Dung, Vinalines chairman, said the tie-up with the bank was part of the corporation’s diversification strategy as well as equitization process. It planned to enter finance, banking, insurance, securities, electricity, infrastructure, real estate, and tourism.
The group was set to become one of the region’s top maritime groups by 2010 with revenues of more than VND20 trillion ($1.2 billion).
It plans to raise VND51 trillion ($3.2 billion) between 2006 and 2010 to invest in its shipping fleet and upgrade its ports.
This year it targeted to transport 24.8 million tons of cargo – a year-on-year jump of 8%, a record revenue of VND12 trillion ($750 million).
The company plans to purchase 29 more vessels with total capacity of 692,000 DWT (dead-weight-tons).
Vietcombank – the country’s second largest by assets is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year. It is in the process to source out strategic foreign investors to participate in managing the structure of the bank.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs. The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
Source: Thanh Nien
Friday, June 15, 2007
Road developer plans to build highway on $169 mln in bonds
The state-run Vietnam Expressway Corporation (VEC) is set to raise VND2.7 trillion (US$169 million) from a domestic bond issue this year to finance the construction of a key expressway in northern Vietnam. The corporate bond issue recently approved by the government will be guaranteed by the Ministry of Finance.
The VEC – an arm of the Ministry of Transport said the raised capital would be invested in the first phase of the 56-km Cau Gie-Ninh Binh expressway through Ha Nam, Ha Tay, Nam Dinh and Ninh Binh provinces.
In a dispatch to the VEC earlier this week, Prime Minister Nguyen Tan Dung instructed the ministries of transport and finance, and relevant agencies to assist the corporation in drawing up a bond schedule.
The project requires a total investment capital of VND5.4 trillion ($335 million) for two phases.
The first phase, for which construction kicked off last January, will see VEC investing VND3.7 trillion ($230 million) to build the four-lane road expected to open traffic in 2009.
Of the investment sum, VEC will obtain VND1 trillion from the state coffers to implement the project.
In the second phase, the expressway will be expanded into six lanes.
As planned, the project owner will build other facilities along road like petrol and auto repair stations, rescue centers, motels and advertising services.
Vietnam has only four roads under construction that rise to international expressway standards.
Under the government’s infrastructure development plan between now and 2020, the target of a 2,353km highway to be built by 2015 will be the VEC’s largest task.
Expressways account for 4.44% of total roadway mileage in Singapore, 0.61 per cent in Malaysia, and 2.4 per cent in Korea, but they are almost negligible in Vietnam.
Building highways in the country has long fallen under the authority of Project Management Units (PMUs) within the Ministry of Transport. Since 2004, however, the task has been transferred to the VEC.
Source: Thanh Nien
The VEC – an arm of the Ministry of Transport said the raised capital would be invested in the first phase of the 56-km Cau Gie-Ninh Binh expressway through Ha Nam, Ha Tay, Nam Dinh and Ninh Binh provinces.
In a dispatch to the VEC earlier this week, Prime Minister Nguyen Tan Dung instructed the ministries of transport and finance, and relevant agencies to assist the corporation in drawing up a bond schedule.
The project requires a total investment capital of VND5.4 trillion ($335 million) for two phases.
The first phase, for which construction kicked off last January, will see VEC investing VND3.7 trillion ($230 million) to build the four-lane road expected to open traffic in 2009.
Of the investment sum, VEC will obtain VND1 trillion from the state coffers to implement the project.
In the second phase, the expressway will be expanded into six lanes.
As planned, the project owner will build other facilities along road like petrol and auto repair stations, rescue centers, motels and advertising services.
Vietnam has only four roads under construction that rise to international expressway standards.
Under the government’s infrastructure development plan between now and 2020, the target of a 2,353km highway to be built by 2015 will be the VEC’s largest task.
Expressways account for 4.44% of total roadway mileage in Singapore, 0.61 per cent in Malaysia, and 2.4 per cent in Korea, but they are almost negligible in Vietnam.
Building highways in the country has long fallen under the authority of Project Management Units (PMUs) within the Ministry of Transport. Since 2004, however, the task has been transferred to the VEC.
Source: Thanh Nien
Saturday, May 26, 2007
PV Trans to pour 1.1 billion USD into projects
PetroVietnam Transportation, a subsidiary of State owned oil giant PetroVietnam Group, has announced plans it will invest more than 1.1 billion USD into major projects between 2007-2010, according to CEO Bui Tho Manh.
PV Trans, which is charged with facilitating all of PetroVietnam Group's transportation solutions, is set to build three 105,000-tonne oil tankers and seven freighters at a cost of close to 454 million USD.
An additional 152 million USD will be poured into the construction of a services complex at the Dung Quat economic zone, apart from several other properties development projects.
The company has in large part generated the needed capital for its expansion from a successful public share issuance it held on December 28, 2006.
Source: VNA
PV Trans, which is charged with facilitating all of PetroVietnam Group's transportation solutions, is set to build three 105,000-tonne oil tankers and seven freighters at a cost of close to 454 million USD.
An additional 152 million USD will be poured into the construction of a services complex at the Dung Quat economic zone, apart from several other properties development projects.
The company has in large part generated the needed capital for its expansion from a successful public share issuance it held on December 28, 2006.
Source: VNA
Thursday, May 17, 2007
Gemadept to sell 24.5 mln shares
Gemadept Corporation (GMD), Vietnam's largest listed freight forwarder, said on Thursday it would issue 24.5 million new shares this year or in early 2008 to finance the construction of sea ports and cargo ship purchases.
The issue, slated for the second half of 2007 or the first quarter of 2008, would boost Gemadept's registered capital by 51.6% to 720 billion dong ($44.7 million), Gemadept chairman Do Van Nhan said in a statement.
He did say how much the firm aimed to raise in the issue. Shares in Gemadept closed flat on Wednesday at 168,000 dong ($10.4), valuing the company at $424 million.
The Ho Chi Minh City-based firm would sell 15,834,000 new shares to existing shareholders in a 3-for-1 scheme at a price of between 30% and 50% of the stock's price at the time of sale, Nhan said in the statement.
Gemadept would sell another 6,291,000 shares to strategic investors at a price of at least 80% the stock's price at the time of sale.
The firm would also sell 2,375,000 shares to employees at a price 5% higher than the selling price for existing shareholders, Nhan said.
The proceeds would go to the construction of four sea ports, one building, an industrial zone and to purchase ships, he said without detailing investment in each project.
Gemadept aims for a 15% rise in revenues this year from last year's 1.21 trillion dong ($75 million) and a rise in net profit of up to 30% from 156 billion dong ($9.7 million).
Source: Reuters
The issue, slated for the second half of 2007 or the first quarter of 2008, would boost Gemadept's registered capital by 51.6% to 720 billion dong ($44.7 million), Gemadept chairman Do Van Nhan said in a statement.
He did say how much the firm aimed to raise in the issue. Shares in Gemadept closed flat on Wednesday at 168,000 dong ($10.4), valuing the company at $424 million.
The Ho Chi Minh City-based firm would sell 15,834,000 new shares to existing shareholders in a 3-for-1 scheme at a price of between 30% and 50% of the stock's price at the time of sale, Nhan said in the statement.
Gemadept would sell another 6,291,000 shares to strategic investors at a price of at least 80% the stock's price at the time of sale.
The firm would also sell 2,375,000 shares to employees at a price 5% higher than the selling price for existing shareholders, Nhan said.
The proceeds would go to the construction of four sea ports, one building, an industrial zone and to purchase ships, he said without detailing investment in each project.
Gemadept aims for a 15% rise in revenues this year from last year's 1.21 trillion dong ($75 million) and a rise in net profit of up to 30% from 156 billion dong ($9.7 million).
Source: Reuters
Thursday, April 12, 2007
Transport capacity hinders fertiliser production
The lack of input materials caused by limited transport capability has caused big difficulties for local fertiliser producers.
The Southern Fertiliser Company said that it had to transport apatite ore from Lao Cai in the north to its plant in Long Thanh district in the southern province of Dong nai. The company first carried apatite ore from Lao Cai to Hai Phong port by train, and then shipped ore from Hai Phong to Long Thanh district by sea.
However, as the transportation fees of both means of transport have increased considerably in the last time, and the transportation capability is limited, the company cannot get enough materials to feed the production line.
Bui Quang Lanh, Director of Van Dien Phosphate Fertiliser Company, said that since January 1, 2007, input material transportation fees had increased by VND30,000/tonne, while the fees for carrying finished products to consumption points had also increased by VND40,000/tonne. At the same time, the prices of many kinds of input material have increased sharply, making the production cost of fertiliser much higher.
Despite the higher transportation fees, companies are still facing difficulties in transporting input materials to their plants or carrying finished products to consumption places due to bad transport capability.
Urea, Kali, SA, DAP, the main input materials for NPK fertiliser, which account for 70-90% of NPK content, all have seen sharp price increases. The price of urea, for example, has risen from VND4,400.kg to VND5,000/kg, kali from VND3,600/kg to VND4,000/kg. It is estimated that the production cost of one tonne of NPK has increased by VND150-300,000.
The Lam Thao Superphosphate and Chemicals Company said that the company put out 650,000 tonnes a year, a half of which must be made right at this time to be provided to farmers for the summer-autumn crop. However, the company is facing big difficulties due to the dramatic increases in prices.
Mr Lanh from Van Dien Phosphate Fertiliser Company said that the company had raised its selling price by VND30,000/tonne for phosphate fertiliser, and VND50-100,000/tonne for NPK, commencing April 1. However, the increases prove to be not enough to cover the input material price increases.
He said that since January 1, 2007, the production cost for one tonne of phosphate fertiliser had increased by VND110,000/tonne, and for NPK by VND150-300,000. However, the company did not raise the selling price in the first quarter of the year, thus ‘giving’ farmers VND8-10bil.
Mr Lanh has announced that phosphate fertiliser will see the price increase of VND30,000/tonne as of May 1, 2007, and another VND40,000/tonne as of June 1, 2007.
Source: VNE
The Southern Fertiliser Company said that it had to transport apatite ore from Lao Cai in the north to its plant in Long Thanh district in the southern province of Dong nai. The company first carried apatite ore from Lao Cai to Hai Phong port by train, and then shipped ore from Hai Phong to Long Thanh district by sea.
However, as the transportation fees of both means of transport have increased considerably in the last time, and the transportation capability is limited, the company cannot get enough materials to feed the production line.
Bui Quang Lanh, Director of Van Dien Phosphate Fertiliser Company, said that since January 1, 2007, input material transportation fees had increased by VND30,000/tonne, while the fees for carrying finished products to consumption points had also increased by VND40,000/tonne. At the same time, the prices of many kinds of input material have increased sharply, making the production cost of fertiliser much higher.
Despite the higher transportation fees, companies are still facing difficulties in transporting input materials to their plants or carrying finished products to consumption places due to bad transport capability.
Urea, Kali, SA, DAP, the main input materials for NPK fertiliser, which account for 70-90% of NPK content, all have seen sharp price increases. The price of urea, for example, has risen from VND4,400.kg to VND5,000/kg, kali from VND3,600/kg to VND4,000/kg. It is estimated that the production cost of one tonne of NPK has increased by VND150-300,000.
The Lam Thao Superphosphate and Chemicals Company said that the company put out 650,000 tonnes a year, a half of which must be made right at this time to be provided to farmers for the summer-autumn crop. However, the company is facing big difficulties due to the dramatic increases in prices.
Mr Lanh from Van Dien Phosphate Fertiliser Company said that the company had raised its selling price by VND30,000/tonne for phosphate fertiliser, and VND50-100,000/tonne for NPK, commencing April 1. However, the increases prove to be not enough to cover the input material price increases.
He said that since January 1, 2007, the production cost for one tonne of phosphate fertiliser had increased by VND110,000/tonne, and for NPK by VND150-300,000. However, the company did not raise the selling price in the first quarter of the year, thus ‘giving’ farmers VND8-10bil.
Mr Lanh has announced that phosphate fertiliser will see the price increase of VND30,000/tonne as of May 1, 2007, and another VND40,000/tonne as of June 1, 2007.
Source: VNE
Saturday, March 24, 2007
Quantas to buy stake of Pacific Airlines
he State Capital Investment Corporation (SCIC) and the Australian Qantas are in the final stage of negotiations to sell the state owned shares in Pacific Airlines to the Australian air carrier, a source from SCIC said.The source said that the official contract on the sale of the stakes will be inked at the end of March or in the first quarter of April at the latest.
The source has declined to reveal the value of the contract and how many percentages the second biggest Australian air carrier will hold, however, he said that SCIC would retain the controlling stakes in Pacific Airlines.
The Australian air carrier began negotiating to buy a proportion of Pacific Airlines' shares in January 2007, which has been valued at 167mio Us$. It is said that Pacific Airlines would sell 30% of its shares to foreign investors, however, the figure has not been confirmed.
In addition to selling shares in Pacific Airlines, SCIC is also considering selling shares in other enterprises to which it makes capital contribution in order to provide more 'commodities' to the stock market.
In an interview given to the press agencies recently, Le Song Lai, Deputy Director General of SCIC said that in 2007, SCIC would have 22 more companies listed on the stock market.
In 2007, SCIC plans to withdraw VND227bil (14.18mio Us$) worth of capital from 50 enterprises. The majority of them are small enterprises which do not operate in important fields.
Source: VNE
The source has declined to reveal the value of the contract and how many percentages the second biggest Australian air carrier will hold, however, he said that SCIC would retain the controlling stakes in Pacific Airlines.
The Australian air carrier began negotiating to buy a proportion of Pacific Airlines' shares in January 2007, which has been valued at 167mio Us$. It is said that Pacific Airlines would sell 30% of its shares to foreign investors, however, the figure has not been confirmed.
In addition to selling shares in Pacific Airlines, SCIC is also considering selling shares in other enterprises to which it makes capital contribution in order to provide more 'commodities' to the stock market.
In an interview given to the press agencies recently, Le Song Lai, Deputy Director General of SCIC said that in 2007, SCIC would have 22 more companies listed on the stock market.
In 2007, SCIC plans to withdraw VND227bil (14.18mio Us$) worth of capital from 50 enterprises. The majority of them are small enterprises which do not operate in important fields.
Source: VNE
Tuesday, March 06, 2007
Government suggests fast equitisation of Vinalines
Prime Minister Nguyen Tan Dung yesterday suggested Viet Nam National Shipping Lines (Vinalines) equitise in short order, a move that would bolster revenues and allow the firm to develop its fleet and ports.
Dung made the comments while attending a conference to shape Vinalines' business plans for the coming year.
The corporation could also take out loans and issue bonds to speed up major projects, the Prime Minister said.
The Government-run Vinalines should not use State money for large-scale schemes and cut down on the use of development assistance, he said.
Dung directed the corporation to speed up decision-making when it comes to purchasing new vessels.
During a speech, the Prime Minister said the Government has plans, created during the 4th National Party Congress, to spur maritime trade.
The programmes focus on oil and gas exploration, the development of a sea ports system, maritime transport and ship building, fish farming and tourism.
Dung said maritime trade and transport had yet to match their potential.
He called on Vinalines to improve port infrastructure and bolster its fleet to ensure an 8.5% annual growth rate.
Source: VNN
Thursday, January 04, 2007
Vietnam Airlines profit lower than expected
Vietnam Airlines reported below-target profits for 2006 Wednesday despite increased flights, passenger numbers and turnover, partly blaming higher fuel costs for it.
Turnover was 17.5 trillion VND (nearly 1.1bio US$), 5% higher than expected and up 12.4 percent year-on-year.
But profits were only 304.5 billion VND (19mio US$), or 8% below the target. The statement did not indicate year-on-year change in profit.
"The price of oil was 18.25 percent higher than expected, leading to an increase of 767 billion VND in fuel costs."Higher aircraft leasing costs, fierce competition from international airlines, bad weather, bird flu risks, and security concerns were also factors.
Vietnam Airlines transports nearly 7mio passengers
Vietnam Airlines has transported over 6.8 million passengers in 2006, nearly 1 million more than the previous year, and 106,600 tonnes of cargo.
The airlines recorded a seat occupancy rate of 71.9%.
Last year, Vietnam Airlines signed a contract with American Airlines to conduct flights to the US and opened a direct route between Ha Noi and Luong Prabang in Laos. It plans to open a non-stop route to the US by the end of 2007.
Source: VNA
The airlines recorded a seat occupancy rate of 71.9%.
Last year, Vietnam Airlines signed a contract with American Airlines to conduct flights to the US and opened a direct route between Ha Noi and Luong Prabang in Laos. It plans to open a non-stop route to the US by the end of 2007.
Source: VNA
Tuesday, January 02, 2007
Vietnam Airlines' IPO this year
National carrier Viet Nam Airlines will be equitised by next year according to a Prime Minister's decision.
Viet Nam Airlines has a registered capital of 5.74 trillion VND (358.8mio US$) and runs 18 other units, three affiliates, nine joint-stock concerns, and four joint ventures.
Source: VNA
Tuesday, November 28, 2006
Gemadept (GMD) has received the go to issue new shares
The new capital mobilized from the share issue will be invested into the company’s projects, port construction, facilities purchases and real estate.
In the first stage, more than 7 million shares will be sold to existing shareholders and the company staff.
In the second stage, it will issue 5.8 million shares to strategic investors.
Gemadapt shares closed at 148,000 VND on Monday, down 4.51 percent for the day.
The listed logistics firm, with a chartered 200 billion VND (13.3mio US$), has a market share of 23% of the national port operation service.
It expects to earn 1.2 trillion VND (75mio Us$) in revenue this year. Planned revenues for 2007 are to rise by 32% to 99mio US$ and to 111mio US$ (+12%) in 2008.
Gemadept is forecast to reach pre-tax profit of 160 billion VND (9.9mio US$) this year and this figure is set to accelerate to 235 billion VND (14.6mio US$) and VND261 billion VND (16mio US$) in 2007 and 2008 respectively.
In the first stage, more than 7 million shares will be sold to existing shareholders and the company staff.
In the second stage, it will issue 5.8 million shares to strategic investors.
Gemadapt shares closed at 148,000 VND on Monday, down 4.51 percent for the day.
The listed logistics firm, with a chartered 200 billion VND (13.3mio US$), has a market share of 23% of the national port operation service.
It expects to earn 1.2 trillion VND (75mio Us$) in revenue this year. Planned revenues for 2007 are to rise by 32% to 99mio US$ and to 111mio US$ (+12%) in 2008.
Gemadept is forecast to reach pre-tax profit of 160 billion VND (9.9mio US$) this year and this figure is set to accelerate to 235 billion VND (14.6mio US$) and VND261 billion VND (16mio US$) in 2007 and 2008 respectively.
Sunday, November 12, 2006
Gemadept to issue shares
Shares of the General Forwarding and Agency Corp (Gemadept) are seen as the four most attractive securities by foreign investors together with Vinamilk, Sacombank and REE.
Concerning revenue, Gemadept is one of the market’s leaders in forwarding and transportation with an estimated rise of 1.2 trillion dong this year. In 2007 and 2008, their revenue will be increased to 1.6 trillion and 1.8 trillion dong equalling a 32% and 13% rise when compared with previous years. Their financial report for the first three quarters showed 829 billion dong revenue and 103 billion dong after-tax profit. The company is completely capable of posting a 160 billion dong pre-tax profit this year and this figure will be accelerate to respectively 235 billion dong and 261 billion dong in 2007 and 2008.
According to assessments from foreign financial organisations, Gemadept's strong points lie in package services or one-stop services that help reduce expenses therefore increasing competitiveness for producers and importers. With an annual export growth of about 25% of the economy, the revenue and profits of forwarders and transporters are likely to soar up strongly and this also points to the great potential that Gemadepts has to develop.
More importantly, Gemadept is operating large two project groups including construction and development of port infrastructure and real estate.
Foreign investors buy shares of Gemadept under the form of agreement and order-matching in the last three months.
Concerning revenue, Gemadept is one of the market’s leaders in forwarding and transportation with an estimated rise of 1.2 trillion dong this year. In 2007 and 2008, their revenue will be increased to 1.6 trillion and 1.8 trillion dong equalling a 32% and 13% rise when compared with previous years. Their financial report for the first three quarters showed 829 billion dong revenue and 103 billion dong after-tax profit. The company is completely capable of posting a 160 billion dong pre-tax profit this year and this figure will be accelerate to respectively 235 billion dong and 261 billion dong in 2007 and 2008.
According to assessments from foreign financial organisations, Gemadept's strong points lie in package services or one-stop services that help reduce expenses therefore increasing competitiveness for producers and importers. With an annual export growth of about 25% of the economy, the revenue and profits of forwarders and transporters are likely to soar up strongly and this also points to the great potential that Gemadepts has to develop.
More importantly, Gemadept is operating large two project groups including construction and development of port infrastructure and real estate.
Foreign investors buy shares of Gemadept under the form of agreement and order-matching in the last three months.
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