Can financial plan go"bust" because of BOT loss?

VCN - Due to the negative effects of the Covid-19 epidemic, the revenue of many toll booth son highways has decreased dramatically, which could lead to the risk of financial options for BOT investors.
can financial plan gobust because of bot loss With falling demand because of Covid-19, the price of coffee "bottomed out" in 10 years
can financial plan gobust because of bot loss Lang Son: Dual effect "both against epidemic and against smuggling"
can financial plan gobust because of bot loss Remove manpower bottlenecks to increase surplus for wood industry

Losing many billions

According to a report by theVietnam Expressway Development Investment Corporation (VEC), the number of vehicles using highways in March has decreased by 15.8%, equivalent to a decrease of 16.2% in VEC revenue compared to the same period last year.

The Noi Bai-Lao Cai and CauGie – NinhBinh expressways were the two with the worst losses, with revenue declines of 28.6% and 15.4%, respectively. Although the Ho Chi Minh City-Long Thanh – DauGiay highway has not decreased significantly in volume, the revenue is 1.5% lower than the same period in 2019.

Thus, for the first three months, VEC has collected fees from 11.57 million vehicles on nearly 500km of highways, down 2.4% in volume and 3% in revenue over the same period last year.

Compared withJanuary and February, VEC's number of vehicles as well as toll revenue in March had a sharp decrease compared to the same period last year, equivalent to 15.8% and 16.2%, making this enterprise short of collected VND58 billion in fees.

Not only theVEC highways, there are many other highways falling into the same situation due to the effects of the Covid-19 pandemic. The severe drop in vehicle traffic as well as toll revenue on these highways not only causes economic losses but also threatens the financial plan of the projects if this situation continues for a long time.

can financial plan gobust because of bot loss
Revenue of toll plazas plummeted due to the impact of the Covid-19 pandemic. Photo: ST.

The risk of “busting” financial plan

Talking to reporters from Customs Newspaper, economist Dang Dinh Dao analyzed that, in the next few months, if the situation continues, the Covid-9 epidemic will be complicated and the service industries like tourism, production, import and export have not been able to recover, the traffic volume through national highways will still decrease.

When the vehicle flow and cost do not increase, the revenue of the toll collection is insufficient compared to the financial plan, the enterprise will have to continue to offset losses, which will greatly affect the production and business activities and the existence of the business.

According to the Ministry of Transport, the price of using road services (often called BOT fee) is calculated in the financial plan of the project contract, enough for investors - BOT enterprises to repay the mobilized capital in road BOT projects. In recent years, BOT businesses have encountered many difficulties when reducing fees for some types of vehicles, and have not been increased as expected in the project contract under the Government's direction in Resolution No. 35/ NQ-CP.

Banks are also asking BOT businesses to raise additional capital for the lack of revenue to avoid the risk of debt restructuring and debt group transfer. Meanwhile, the Covid-19 epidemic caused the number of vehicles continue to decrease and made BOT enterprises even more difficult.

can financial plan gobust because of bot loss Recurring "evaporation" of profits after audit

“If this situation continues for a long time, it will put businesses and BOT investors in a difficult position. They cannot afford to suffer alone, because if it is left to danger of financial collapse, it will directly affect the refund capital of the project. Therefore, there should be additional support measures for businesses in this period such as adjusting the fee rates or the collection time to ensure the repayment of the project,"Mr. Dang Dinh Dao said.

By XuanThao/Quynhlan

Related News

Prevent tax loss through e-commerce platforms

Prevent tax loss through e-commerce platforms

VCN - Electronic commerce (e-commerce) with its convenience is growing strongly. But the vast cyberspace makes it difficult for authorities to inspect, control quality as well as collect taxes.
Transport infrastructure plays a crucial role in comprehensive economic development

Transport infrastructure plays a crucial role in comprehensive economic development

VCN - The government continues accelerating the development of high-quality infrastructure, especially transport infrastructure and identifies this as one of the three strategic breakthroughs. In connection with this issue, CustomsNews interviewed Assoc. Prof. Dr Tran Chung, Chairman of the Vietnam Association of Road Traffic Investors (VARSI).
COVID-19 drug-related trafficking prosecuted

COVID-19 drug-related trafficking prosecuted

VCN - According to the Customs News, the Anti-smuggling and Investigation Department leader under the General Department of Customs has signed Decision 01/QD-DTCBL on the criminal prosecution of smuggling crime for N.Q Co., Ltd (Nam Dinh city, Nam Dinh province).
China recovers border clearance as before the outbreak of Covid-19

China recovers border clearance as before the outbreak of Covid-19

VCN - According to the Management Board of Dong Dang-Lang Son border gate economic zone, the unit received a letter from the People's Government of Bang Tuong town, from February 20, China officially resumes the border-gate clearance method as before the outbreak of Covid-19.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version