Enterprises increase resources accumulation

VCN - Under the impact of the Covid-19 pandemic, instead of pouring investment capital and expanding production and business, many enterprises have increased their accumulation of resources to wait for a breakthrough when the disease is controlled.

enterprises increase resources accumulation 173 billion USD is import-export turnover of FDI enterprises
enterprises increase resources accumulation Ministry of Finance to discipline representatives of equitized State-owned enterprisesthat have not listed
enterprises increase resources accumulation 88% of enterprises in Ha Noi use e-invoice

enterprises increase resources accumulation
The large amount of deposits brought ACV a large financial income in the context of a sharp decline in aviation services. Source: Internet

Money collectors

Recognition from the financial statements of the second quarter of listed companies shows that the amount of cash, cash equivalents and short-term financial investments (including deposits, bonds, trading securities) of many enterprises has increased in the first six months of 2020.

Specifically, at the Airports Corporation of Vietnam (ACV), the amount of deposits, cash and cash equivalents as of June 30, 2020 reached VND33,825 billion, an increase of VND2,555 billion compared to earlier this year. At Hoa Phat Group Joint Stock Company (HPG), these items even increased to over VND5,000 billion, equivalent to an increase of 78%, to VND12,146 billion. Notably, HPG's held-to-maturity investments (term deposits) increased strongly by 3.4 times to VND 4,668 billion.

Another “billionaire” in cash, Vietnam Dairy Products Joint Stock Company (VNM), has also increased by VND3,928 billion in term deposits in the first six months of 2020, to VND16,363 billion. VNM's cash amount also remained at over VND2,000 billion. Similarly, Vietnam Gas Corporation also accumulated VND33,640 billion in deposits, cash and cash equivalents in the first six months of this year, an increase of VND4,249 billion compared to the beginning of the year. This target at Loc Troi Group Joint Stock Company also increased by 200% compared to the beginning of the year, to VND409 billion.

The large deposit has brought these businesses a significant source of income from bank interest. Specifically, ACV earned VND1,115 billion in revenue from finance activities in the first half of this year, up 27% compared to the same period last year. This revenue has helped ACV to offset the costs significantly in the context that the main business activities such as the provision of aviation services and non-aviation have decreased significantly. At HPG, revenue from financial activities in the first six months of 2020 also doubled over the same period last year, recording VND424 billion, thereby helping the company increase profit. Similarly, many other companies also recorded impressive revenue from financial activities such as VNM reached VND620 billion, up nearly 70%; GAS reached VND779 billion, up 14%; Loc Troi also earned VND22 billion, while in the same period last year this only brought in VND9 billion.

Estate accumulators

While many manufacturing companies actively accumulate cash to wait for disbursement and investment opportunities when the pandemic is over, real estate businesses take advantage of the time to expand land funds andprojects with the hope to buy cheaply. LDG Investment Joint Stock Company (LDG Group) recently received the transfer of Song Da Riverside apartment project from HiepPhuc Real Estate Company - a subsidiary of Quoc Cuong Gia Lai. Accordingly, LDG Group bought 99.9% of Hiep Phuc's shares for VND626 billion. After the deal, LDG Group changed its name to the LDG River apartment complex with an investment of over VND4,100 billion, on a 2.8-hectare scale in Thu Duc district, HCMC.

Similarly, Phat Dat Real Estate Development Joint Stock Company has also acquired the Wynham Tropicana Long Hai resort complex and Ben Thanh - Long Hai resort by acquiring 99% of capital in Ben Thanh Joint Stock Company - Long Hai. In particular, the Wynham Tropicana Long Hai project is planned on a total land area of 12.64 hectares and has been launched by Ben Thanh Long Hai Company since July 2019. It is expected to be handed over to customers in the fourth quarter of 2021. And the project Ben Thanh - Long Hai tourist area has a total investment of about VND450 billion, built on a land of 12.5 hectares, located in Phuoc Hai commune, Dat Do district, Ba Ria-Vung Tau province.

In the central region, Danh Khoi Group also acquired 100% of the capital from Sun Frontier Investment Company Limited to officially become the investor of the Sun Frontier project located in Da Nang City.After the acquisition of this project, Danh Khoi Group implemented a new project called The Royal - Boutique & Condo Da Nang (The Royal).

Finding new projects to carry out M&A to increase land fund is a strategy that many real estate companies with the financial potential to promote in the context of the pandemic have made many itdifficult to implement project declaration.At the Annual General Meeting of Shareholders in 2020, the leaders of An Gia Real Estate Development and Investment Joint Stock Company also stated that the COVID-19 pandemic is opening up a golden opportunity to buy back projects while half a year ago, it was difficult because of high prices and difficulties to negotiate. Accordingly, the company spent VND3,000-5,000 billion in 2020 for the land fund. Previously, in 2019, the company also spent VND2,800 billion to buy a land fund to develop four projects in Ho Chi Minh City, Ba Ria-Vung Tau and Binh Duong.

enterprises increase resources accumulation Tightening the linkage between FDI and domestic enterprises

VCN - The trend of shifting FDI investment to other countries, including Vietnam, is an opportunity for the ...

Nam Long Investment Joint Stock Company is also concentrating resources to expand land fund towards medium and long-term strategies. Accordingly, the company plans to spend up to VND2,000 billion per year for this plan.

By Khai Ky/Dieu Huong

Related News

Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Ba Ria-Vung Tau Customs cultivates a stronger relationship with enterprises

Ba Ria-Vung Tau Customs cultivates a stronger relationship with enterprises

VCN - Ba Ria - Vung Tau Customs Department held a conference to review the development of Customs - Business partnership.
Tax sector determines to take enterprises as the center of service

Tax sector determines to take enterprises as the center of service

VCN - That was the affirmation of Deputy General Director of the General Department of Taxation Mai Son at the Tax - Customs forum in 2024 organized by Vietnam Financial Times on the afternoon of October 16, 2024.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version