HHV has issued an official statement addressing some inaccurate information regarding its financial situation in the past.
According to statistics, during the period 2016-2020, the capital needed for investment in transportation infrastructure development was approximately 1,015 trillion VND, but the state budget only met about 28%.
The participation of private enterprises in investing in transportation infrastructure projects plays a crucial role in the context of limited state budget resources (Illustrative image).
Private sector resources have shared the burden with the state budget, contributing to the development of large-scale, modern transportation infrastructure projects.
Infrastructure projects implemented under the PPP method include: the upgrade and renovation project of the Phap Van - Cau Gie expressway (8,475 billion VND), the Van Don - Mong Cai expressway (9,100 billion VND), the Bac Giang - Lang Son expressway (12,188 billion VND), the Ha Long - Van Don expressway (13,000 billion VND), the Deo Ca - Co Ma - Cu Mong - Hai Van 2 tunnel complex (21,612 billion VND)...
According to economist Dinh Trong Thinh, when completed and put into operation, these projects contribute to changing the appearance and promoting socio-economic development of localities in particular and the whole country in general.
However, assessments show that BOT projects prior to the effective date of the PPP Law (January 1, 2021) did not involve state capital; the investor's equity was regulated at 10-15% of the total investment, with the remainder being capital mobilized from other sources by the investor.
Given the large scale of infrastructure projects, investors must mobilize credit financing to ensure their feasibility.
PPP investment projects are all projects that require large amounts of investment capital. A significant portion of the total project investment is borrowed from banks. Therefore, it is natural for PPP investors to have loans to secure the resources for project implementation as required by law.
Economist Dinh Trong Thinh
Mr. Nguyen Quang Huy, General Director of Deo Ca Infrastructure Investment Joint Stock Company (HHV), said that before banks can provide funding for projects, they must go through a process of legal assessment, investor capacity evaluation, feasibility assessment, and project effectiveness evaluation.
While equity participation in projects is typically only 10-15%, the current equity-to-total assets ratio of HHV Company is as high as 24%.
However, according to Mr. Huy, operating in this specialized field, businesses often face inaccurate information about the nature of loans used to raise capital for projects.
Most recently, some news websites have reported that HHV Company has "failed to meet its financial goals," is "burdened with debt," and is "overwhelmed by financial debt"...
The Hai Van 2 tunnel project is operated and managed by HHV.
"HHV is still operating continuously and stably, fulfilling all its obligations to state agencies, shareholders, partners, and employees."
"Loans and interest payments have been made in full and on time to credit institutions and have not affected the company's cash flow or business operations. This inaccurate information has damaged the image, reputation, and operations of the business," Mr. Huy lamented.
HHV is known to be a major investor in large-scale transportation infrastructure projects in Vietnam. It is also a publicly listed company on the HOSE stock exchange with the ticker symbol HHV and over 40,000 shareholders.
As of September 30, 2024, HHV recorded long-term loan balances of approximately VND 18,900 billion.
According to the company representative, this loan is for investing in projects such as the Deo Ca, Cu Mong, Hai Van 2, and Bac Giang - Lang Son tunnel systems…
The collateral for the loans is the right to collect fees at the projects, and these projects are currently operating and collecting fees with stable cash flow and consistent annual growth of 10-15%.
HHV's business performance during the 2019-2023 period also recorded positive growth, with revenue increasing fourfold and after-tax profit increasing tenfold compared to 2019.
In the first nine months of 2024 alone, HHV recorded consolidated revenue of VND 2,298 billion and after-tax profit of VND 367 billion, representing increases of 25.9% and 18.8% respectively compared to the same period last year.
Source: https://www.baogiaothong.vn/doanh-nghiep-giao-thong-lo-ngai-bi-anh-huong-truc-thong-tin-xau-ve-tinh-hinh-tai-chinh-192241108131502619.htm
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