Transport companies speak out against bad news about financial situation

HHV has official shares regarding some inaccurate information about the financial situation in recent times.

According to statistics, in the period of 2016 - 2020, the capital demand for investment in developing transport infrastructure is about 1,015 trillion VND, but the state budget only meets about 28%.

The participation of private enterprises in investment in transport infrastructure projects plays an important role in the context of limited state budget resources (Illustration photo).

Private resources have shared the burden with the state budget, contributing to the formation of large, modern transport infrastructure projects.

Transport infrastructure projects implemented under the PPP method include: the project to upgrade and renovate the Phap Van - Cau Gie expressway (VND 8,475 billion), the Van Don - Mong Cai expressway (VND 9,100 billion), the Bac Giang - Lang Son expressway (VND 12,188 billion), the Ha Long - Van Don expressway (VND 13,000 billion), the Deo Ca - Co Ma - Cu Mong - Hai Van 2 road tunnel chain (VND 21,612 billion)...

According to economic expert Dinh Trong Thinh, when completed and put into operation, the projects will contribute to changing the face and promoting the socio-economy of localities in particular and the country in general.

However, the assessment shows that BOT projects before the PPP Law took effect (January 1, 2021) did not have the participation of state capital, the investor's equity capital as prescribed was from 10 - 15% of the total investment, the rest was other mobilized investor capital.

With the characteristics of transport infrastructure projects having very large capital scale, transport infrastructure investors must mobilize credit capital for the project to be implemented feasibly.

PPP investment projects are all projects that require large investment capital. The capital that enterprises borrow from banks accounts for a large proportion of the total investment of the project. Therefore, it is obvious that PPP investors have loans and resources to implement the project according to the provisions of law.

Economist Dinh Trong Thinh

Mr. Nguyen Quang Huy, General Director of Deo Ca Transport Infrastructure Investment Joint Stock Company (HHV) said that before receiving capital from banks, projects must go through an appraisal process regarding legality, investor capacity, feasibility and project efficiency.

While the equity capital participating in projects is usually only 10 - 15%, the actual equity capital/total assets of HHV Company is currently up to 24%.

However, according to Mr. Huy, operating in this specific field, businesses often have to face inaccurate information about the nature of loans used to mobilize capital for projects.

Most recently, on some news sites, information appeared saying that HHV Company "broke its financial plan", "burdened with debt", "drowned in financial debt"...

Hai Van 2 tunnel project is operated and exploited by HHV.

"HHV is still operating continuously and stably, and properly and fully fulfilling its obligations to state agencies, shareholders, partners and employees.

"All loans and interest were paid in full and on time to credit institutions and did not affect the company's cash flow or production and business activities. This inaccurate information has damaged the company's image, reputation and operations," Mr. Huy confided.

It is known that HHV is currently an investor in large-scale transport infrastructure projects in Vietnam. This is also a public company listed on the Hose with the stock code HHV with more than 40,000 shareholders participating in the investment.

As of September 30, 2024, HHV recorded a long-term loan balance of about VND 18,900 billion.

According to the business representative, this is a loan to invest in projects such as the Deo Ca, Cu Mong, Hai Van 2, Bac Giang - Lang Son tunnel chains...

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, growing steadily at 10-15% per year.

HHV's production and business results in the 2019 - 2023 period also recorded positive growth with revenue increasing 4 times and after-tax profit increasing 10 times compared to 2019.

In the first 9 months of 2024 alone, HHV recorded consolidated revenue of VND 2,298 billion, profit after tax reached VND 367 billion, up 25.9% and 18.8% over the same period last year, respectively.

Source: https://www.baogiaothong.vn/doanh-nghiep-giao-thong-lo-ngai-bi-anh-huong-truoc-thong-tin-xau-ve-tinh-hinh-tai-chinh-192241108131502619.htm