VietNamNet Bridge - Not only earning huge profits annually, the owners of big groups are also the largest debtors of banks with loans up to hundreds of millions of US dollars.

Hoa Phat Group

In 2013, the revenue of Hoa Phat Group reached over VND19.2 trillion, up 13% from the previous year and exceeded the target 4%. The group announced a net profit of VND1.954 trillion, doubling the previous year and 63% more than the set target ($1.2 trillion).

On December 31, 2013, the inventory value of this group was close to VND8 trillion, an increase of more than VND1 trillion compared with early 2013. Although the group published huge profits and revenue, by the end of 2013, its total liabilities was far more than its equity.

Specifically, its debts at the time of 31/12/2013 reached VND13,377 billion, an increase of nearly VND3 trillion compared with the early year, including short-term debt of over VND11 trillion and long-term debt of VND2,365 billion. Meanwhile, Hoa Phat’s equity at the end of 2013 was only VND9,498 billion, approximately VND4 trillion less than the total liabilities of the company at the same time.

Ocean Group

A supermarket of the Ocean Group.

According to the 2013 financial statements, Ocean Group’s pre-tax profit reached VND290.6 billion, up 66%. Its after-tax profit increased 80% and reached VND168 billion.

However, this group also announced the debt worth trillion dong, with several loans of high interest rates. 2013 was also the 2nd year that Ocean Group would bear the loan interest of nearly VND500 billion ($25 million). In particular, there were many internal loans. In the second quarter of 2013, Ocean Group and its subsidiaries borrowed long-term loans of VND558.7 billion of the Ocean Bank (Ocean Group holds 20% of this bank’s capital).

The loans are up to VND1,535 billion, of which VND452 billion borrowed from HDBank, an increase of VND416 billion in 2013 and VND97 billion of OceanBank ... The due debt is VND918 billion, including VND500 billion of bonds of Southernbank, VND200 billion of bonds of HDBank and VND500 billion of bonds of Techcombank and commercial loans from Ocean Bank that are due in 2014. In addition, the Ocean Group has long-term loans of up to VND2,079 billion from commercial banks and other creditors.

Hoang Anh Gia Lai Group

HAGL's boss Doan Nguyen Duc.

The financial statements in late 2013 showed that Hoang Anh Gia Lai (HAGL) is the private group with the second largest loan balance on the stock market, with a total of VND14,255 billion.

HAGL is a conglomerate operating in various business fields, which owns a series of rubber and sugar cane projects. The corporation announced its withdrawal from the local real estate market but it expands its estate business in Myanmar. In 2013, the corporation sold six hydropower projects.

According to the latest report, this group has released VND8,376 billion in bonds for banks and partners. Its bank loans as of the end of 2013 was VND5,879 billion, including loans in many banks. Short -term debt accounted for VND2.689 billion, including VND1,097 billion of BIDV, Vietcombank VND921 billion, Sacombank VND499 billion, Viet-Laos Bank VND100 billion, Vietinbank VND47 billion, Agribank VND17 billion and SHB VND5 billion.

The total long-term debt was VND4,046 billion, including VND1.784 billion of BIDV, Sacombank VND1.164 billion, Eximbank VND480 billion, Viet-Laos Bank VND332 billion, ACB VND147 billion and Vietcombank VND126 billion.

Source: Infonet