Mon. Apr 15th, 2024

VietNamNet Bridge – A lot of the well-known names, who were considered the
big sharks in the business circle, have become miserable with the big debts on
their shoulders.


Vietnam, bad debt, economic recession, real estate

On February 23, 2013, the HCM City Stock Exchange released a notice about the
delisting of SBS of Sacombank Securities Company after 2.5 years of listing on
the HCM City bourse.

The notice said 127 million SBS would bear the compulsory delisting from March
25 after the accumulative loss of the company by the end of 2012 had reached 1.7
trillion, or higher than the real chartered capital.

Sacombank Securities was once put among the top securities companies in Vietnam
partially because it was backed by one of the most powerful commercial banks in
Vietnam. However, SBS has fallen into the impasse with the share price down by
90 percent from VND42,000 per share in July 2010 when the share made debut to
VND2,700 per share now.

Another big guy, SGT, a telecom technology company, is in the danger of being
forced to delist after incurring big loss for a long time.

SGT incurred the loss of VND225 billion in 2012. In the year before, SGT also
lost nearly 100 billion dong, while the watchdog agency gave it the warning in
mid April 2012.

SGT is also a well-known name because it has been managed by Dang Thanh Tam, the
richest stock millionaire in Vietnam in 2009. The price of SGT once hit the
VND65,000 per share threshold. Meanwhile, on February 26, it was traded at
VND3,100.

The fate of SGT has nearly been decided. If its finance report in 2012 continued
showing the negative business result, SGT shares would be weeded out from the
transactions on the bourse.

Especially, some other enterprises have smaller business scale and smaller
debts, but seemingly have darker future.

After the crisis in early 2012 due to the power dispute, investors nurtured a
brilliant hope about the future of Sudico–after hearing the business plan on
obtaining 200 billion dong in profit in the last six months of 2012 that the
board of management submitted to the shareholders’ meeting.

However, the company could not do the thing it promised, while having reported
the huge loss of VND300 billion in 2012. The total debt it had incurred by the
end of 2012 had climbed to VND4 trillion.

It was quite a surprise that the total turnover of Sudico in the fourth quarter
of 2012, an enterprise with the total capital of trillions of dong, was VND31
billion only.

Misfortune still exists

It seems that the ill luck spares no one, from the enterprises in the securities
sector, to construction.

Securities investors last week got shocked when hearing that PVX, called the
“biggest bird of the flock,” reported the big loss of VND1 trillion. Meanwhile,
PVX has been always considered the “pillar” on the Hanoi bourse.

The big loss, plus the big debt of VND7.6 trillion, accounting for 72 percent of
total assets, may turn a blue chip into the refused shares.

Prior to that, PSG, also a big guy in the construction and installation of the
oil and gas family, also stirred up the public with the report about the loss of
VND250 billion. The other two relatives, PVA and PXM also reported the loss of
VND100 billion in 2012.

Manh Ha

By vivian