VietNamNet Bridge - A number of once-famous large corporations are now bogged down in difficulties and losses, with little chance for recovery.

Viet An – Anvifish has released its Q3 finance report which shows no sign of the company’s recovery. Anvifish has taken a loss for the 11th consecutive quarter. In the first nine months of the year, the company had modest revenue of VND100 billion, while it has incurred a loss of VND500 billion

Just six years ago, when Anvifish was in its heyday, no one could imagine that the company’s share price would fall from VND20,000 per share to VND300.

Another once resounding business – Navico – is facing big difficulties. Navico, together with Vinh Hoan and Hung Vuong, was one of the leading enterprises in the seafood industry. 

However, Navico and the title ‘catfish King’ have fallen into oblivion. 

Meanwhile, Vinh Hoan’s owner – Truong Thi Le Khanh – has been listed among top 10 stock millionaires and Hung Vuong’s owner Duong Ngoc Minh has also become one of the most influential businessmen in the industry. 

Navico’s share price has fallen from VND60,000 per share to VND7,000 and is now just a trivial business.

A number of once-famous large corporations are now bogged down in difficulties and losses, with little chance for recovery.

In the shipping industry, Nosco has reported an additional loss of VND37 billion in the third quarter of the year, raising an accumulative loss to VND3.3 trillion. In 2016 alone, the company’s loss may reach VND450 billion.

The third quarter revenue of the shipping firm dropped dramatically to a level just equal to 50 percent of revenue last year, which was even lower than the bank loan interest. 

Analysts said the possibility of Nosco going bankrupt is now higher than ever. Nosco’s once-renowned fleet has become a heavy burden because of high investment value. 

Prior to that, investors witnessed the collapse of another well-known name in the shipping industry – Viet Hai Shipping & Real Estate. 

Viet Hai shares (VSP) were very attractive, but the shipping firm has become a ‘ghost vessel’ and had to suspend operation in late March after three years of unsuccessful restructuring.

Many other giants in their fields, namely Alphanam, Thai Hoa Group, VOS (shipping firm) and Vinaconex, have unexpectedly collapsed after experiencing golden days.

Le Quang Tri from Tri Viet Securities said that the common characteristic of the enterprises is the huge accumulative loss which is higher than stockholder equity and there is little opportunity for recovery.

One of the methods suggested to help restructure business debts is the conversion of bank loans to shares. However, this can only be applied in some cases where banks still can see opportunities of recovery.


M.Ha