[Round-up] Moody’s Downgrades Vinacomin to B3, China Water Pipeline Deal Put on Hold

Tuan Minh

18:05 06/04/2016

BizLIVE - Moody’s has downgraded the corporate family rating of state-owned Vinacomin to B3 from B2. Hanoi’s government has proposed postponing the signing of a contract with a Chinese pipe supplier for a water supply project in the city.

[Round-up] Moody’s Downgrades Vinacomin to B3, China Water Pipeline Deal Put on Hold

Moody’s has downgraded the corporate family rating of state-owned Vinacomin to B3 from B2.

Moody’s Downgrades Vinacomin to B3; Outlook Stable
Moody’s Investors Service has downgraded the corporate family rating (CFR) of state-owned Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) to B3 from B2, with outlook being stable.
“The downgrade to B3 reflects Vinacomin’s ongoing dependence on debt-funded capital expenditures, which raised its leverage to around 5.0x at the end of 2015 and will drive a further increase in leverage during 2016,” says Brian Grieser, a Moody’s vice president and senior analyst.
Hanoi Puts Chinese-invested Water Pipeline Contract on Hold
Hanoi People’s Committee has proposed the developer of the Da River Water Project Phase 2 postpone signing a contract with a Chinese pipe supplier, after Deputy Prime Minister Nguyen Xuan Phuc demanded a review of the whole project.
The committee also recommended the project developer soon hire an international consulting firm capable of assessing and verifying the quality of the pipe sample supplied by the contractor.
Vietnam State-run Firms Raises $90 Million from Share Sales in Q1
Vietnam’s state-run companies sold 147.7 million shares worth 2.02 trillion dong ($90.13 million) through 16 auctions on the Hanoi Stock Exchange (HNX) during the first quarter of this year, marking an increase of 27.5% in value from a year earlier.
Foreign Investors Increasing Interested in Can Tho City
Many investors from Japan, South Korea and other countries have come to explore Can Tho city’s investment environment and many have sought to invest, said Vo Thanh Thong, chairman of its People’s Committee.
The city last month licensed South Korea’s Tae Kwang Vina Industrial to set up a shoe production plant in its 2B Hung Phu Industrial Park, with a registered capital of $171 million, it the Mekong Delta city’s biggest ever foreign project.
Vietnam to Sustain Rice Exports despite Failed Crops
The rice output of the winter-spring rice crop fell significantly because of drought and salination, but with an additional 200,000 hectares to be planted in the Mekong Delta region, there will be enough rice for exports, the Vietnam News Agency cited the Mekong Delta Rice Research Institute as saying.
As many as 180,000 hectares of the winter-spring rice crop in the region have been damaged by drought and saltwater. Therefore, the region is expected to yield 10.94 million tons of paddy from the crop, down 186,144 tons over the same period last year.
Vietnam Raises Gasoline Prices for 2nd Time YTD
The Ministries of Industry and Trade and Finance on Tuesday decided to hike the retail prices of RON 92 petrol and E5 bio-fuel by 518 dong (23 U.S. cents) and 551 dong per liter, respectively.
This is the second time that gasoline prices have been raised in the year to date.
The ceiling price of diesel oil remains unchanged at 9,873 dong per liter. The maximum price of kerosene was kept at 8,905 dong per liter.
Activists Call for Increasing of Consumption Taxes
Health activists say special consumption taxes imposed on alcohol, beer and tobacco should be increased to improve community health and tackle the national budget deficit, according to the Vietnam News Agency.
Nguyen Tuan Lam from the World Health Organization (WHO) in Vietnam said that increasing tax would be a win-win solution for both the government and citizens, amid heavy budget deficits.
Citizens could potentially avoid diseases caused by consuming those products while the national budget would have more revenue sources, Mr. Lam said.
Condo Transactions in HCM City Fall 18% q/q in Q1/2016: Savills
Around 6,300 apartments were changed hands in Ho Chi Minh City in the first three months of 2016, down 18% quarter-on-quarter (q-o-q) but up 49% year-on-year (y-o-y), Savills Vietnam has said in a report.
Absorption rate was 17%, declining four percentage points (ppts) q-o-q and y-o-y due to abundant new supply in recent quarters, with Grade A having the highest absorption rate at 23%, the real estate service firm says.
Vietnamese cosmetics manufacturers are uneasy if overseas products gain control of the country’s distribution network as domestic cosmetics have been overwhelmed by multinationals due to a lack of innovation and promotional strategies, according to www.cosmeticsdesign-asia.com.
South Korea’s LG Display Co Ltd on Tuesday signed a memorandum of understanding with Hai Phong’s government to build a new display module assembly plant with an investment of $1.5 billion in the city, according to the Ministry of Planning and Investment-run Dau Tu (Investment) newspaper.
Work on the plant is scheduled for kick-start in early May 2016 in Trang Due Industrial Park and operation in the second half of 2017. It will churn out organic light-emitting diode (OLED) displays.
Around five million Vietnamese people went on vacation abroad in 2015 and spent some $6 billion, compared to $3.5 billion in 2012, according to the Vietnam Travel Association.
The most favorite destinations are Japan, South Korea, Thailand, the U.S. and Cambodia.