In addition to PetroVietnam Construction JSC, which has become a notorious loss-making company during the past years, Song Hong Corporation and Vietnam Industrial Construction Corporation have also been reporting huge losses recently.
The three construction corporations are now part of the top 10 loss-makers in Vietnam
The three largest corporations in the construction sector – Song Hong Corporation (code: SHG), Vietnam Industrial Construction Corporation (code: VVN), and PetroVietnam Construction JSC (code: PVX) – have announced their consolidated financial statements, showing poor business results and breaking into the top ten loss-making companies.
These are companies which have been making losses during recent years, with accumulated losses reaching trillions of dongs (exceeding half a hundred million dollars).
Of these, PetroVietnam Construction, a subsidiary of Vietnam Oil and Gas Group (PetroVietnam), reported VND414 billion ($18 million) in after-tax loss, around VND100 billion ($4.35 billion) more than the unaudited figure. As of the end of 2018, the accumulated losses of PetroVietnam Construction were nearly VND3.7 trillion ($160.9 million), almost equivalent to the company’s VND4 trillion ($173.9 million) charter capital.
Meanwhile, Song Hong Corporation made VND380 billion ($16.5 million) in loss, a sharp raise compared to the VND55 billion ($2.4 million) loss from last year due to the provisioning of about VND300 billion ($13 million) for management costs.
This raised Song Hong’s accumulated losses to nearly VND900 billion ($39.1 million). Thereby, the equity of the company was around negative VND630 billion ($27.4 million), while the charter capital was only VND270 billion ($11.74 million) only.
While Petrovietnam Construction and Song Hong Corporation were full of difficulties, Vinaincon had good performance in key business fields with VND43 billion ($1.87 million) profit in 2018. However, Vinaincon had to suffer an annual loss of several billions of dongs (around $10 million) from its subsidiary Quang Son Cement Company.
In 2018, Quang Son Cement reported a loss of VND361 billion ($15.7 million), reducing Vinaincon’s consolidated profit to negative VND300 billion ($13 million). As of the end of 2018, Vinaincon held VND1.2 trillion ($52.17 million) of accumulated losses and negative VND400 billion ($17.4 million) in equity capital. VIR