Misinformation
A representative of Deo Ca Transport Infrastructure Investment Joint Stock Company (HHV) said that currently, many enterprises investing in transport infrastructure under the form of public-private partnership (PPP) are borrowing long-term debts of thousands of billions, even tens of thousands of billions of VND from commercial banks.
Large debt has led to a lot of false information that transport infrastructure investors are losing money and are ineffective.
Many transport infrastructure projects that HHV invested in have been completed on time and are creating great value for society.
According to HHV representative, transport infrastructure projects implemented under the BOT form before the PPP Law took effect (January 1, 2021) did not have the participation of state capital to support the construction and installation component.
According to the newly announced financial report results of HHV, at the end of 2023, HHV recorded consolidated revenue of VND 2,686 billion, an increase of more than 28% over the same period and exceeding 8% of the annual plan approved by the General Meeting of Shareholders.
Profit after tax was recorded at VND362 billion, up nearly 22% over the same period and exceeding the plan by 7%. In the fourth quarter of 2023 alone, HHV's consolidated revenue reached more than VND861 billion, up nearly 40% over the same period in 2022.
The capital structure to implement BOT projects according to regulations at that time was the investor's equity capital from 15 - 20% of the total investment, the rest was the capital mobilized by the investor.
Meanwhile, transport infrastructure projects are very large in scale, with the lowest total investment capital being several thousand billion VND, while some projects are up to tens of thousands of billion VND.
Typically, HHV is known as one of the leading transport infrastructure investors in Vietnam today.
This enterprise has been participating in key transport infrastructure projects with a total investment of more than 50,000 billion VND, including: the Deo Ca - Co Ma - Cu Mong - Hai Van tunnel chain, the Phuoc Tuong - Phu Gia road tunnel project, the National Highway 1 expansion project through Khanh Hoa province, the Bac Giang - Lang Son expressway... All projects are completed on time and are creating real value for society.
Debts are paid in full and on time, without affecting cash flow.
"HHV's current outstanding bank debt is about VND20,000 billion. However, the debt is paid in full and on time and does not affect cash flow, production and business activities as well as shareholder interests," HHV representative affirmed, and also said that according to regulations, the equity capital participating in public projects is about 10 - 15%, while the company's equity/total assets is currently 24%.
In addition, the company's loans are long-term loans for BOT investment. The projects have also been put into operation, the toll revenue is stable, the debt repayment plan is also implemented based on actual revenue and does not affect the company's cash flow.
"Recently, HHV continued to invest in projects such as: Dong Dang - Tra Linh expressway (total investment of more than 14,300 billion VND), Huu Nghi - Chi Lang expressway (total investment of nearly 11,200 billion VND).
Deo Ca has implemented a solution to combine many different capital sources from the proposal to increase state capital, mobilize capital sources from investment enterprises that are also construction contractors... through the PPP++ model, HHV will certainly continue to borrow long-term capital with a reasonable capital structure for each project," the HHV representative shared more.
Discussing the issue of enterprises investing in transport infrastructure having high outstanding debts at banks, Dr. Tran Van The, Vice President of the Vietnam Association of Road Transport Construction Investors (VARSI), an expert on PPP, said that not only previous BOT transport projects, but also transport infrastructure projects implemented after the PPP Law was promulgated, even though they had state capital support (up to 50%), investors still had to mobilize capital from credit institutions.
The reason is that transportation projects have a very large total capital, if only using the enterprise's own capital, no enterprise in Vietnam can do it.
"Enterprises mobilizing capital from credit institutions or other sources to invest in transport infrastructure are completely in accordance with current regulations as well as international practices.
It is very normal for businesses investing in transport infrastructure to have outstanding loans at banks.
The commitments and debt repayment obligations of enterprises to banks from transport projects are still being implemented and guaranteed, so the fact that some people think that PPP transport investors have large outstanding debts, tens of thousands of billions of VND in banks due to business losses is completely incorrect, the information is speculative," Mr. The stated his opinion.
Sharing about the responsibilities of the parties when accompanying Deo Ca, Mr. Dinh Tien Duc, Director of Tien Phong Commercial Joint Stock Bank - Thang Long Branch said that TP Bank has thoroughly and carefully assessed the capacity of Deo Ca.
Deo Ca has demonstrated the ability to deal with many stuck and stalled projects, price fluctuations... or information about large debts and bad debts that are not caused by the business.
"The results are specifically demonstrated by the fact that Deo Ca has completed the Bac Giang - Lang Son, Trung Luong - My Thuan, Cam Lam - Vinh Hao projects and is implementing many other public investment projects with costs always reduced, progress and quality always guaranteed," said Mr. Duc.
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