Vinalines reports shock 2011 profits after huge first-half losses

Vinalines reports shock 2011 profits after huge first-half losses

The figures have come as quite a surprise after it suffered losses of up to VND660 billion (USD31.4 million) in the first half of the year. The result rebuffs doubts that the firm will be unable to avoid losses after its 15-years of operations, particularly in the context of economic difficulties both inside and outside the country.

Tran Thien, Director of the Bien Dong Marine Transport Company, an affiliate of Vinalines, said, “Marine transport firms have faced difficulties due to loan rates of 23-24% per annum. It costs VND30-40 billion (USD1.42-1.9 million) to invest in the construction of a 20,000-tonne ship.”

Vinalines’ total transported cargo volume was estimated at 36.8 million tonnes in 2011, up just 1% compared to 2010 and just 2% higher than the annual plan. Many of the ships are struggling to find cargo.

Vinalines, however, has yet to reveal how it attained it’s surprising profits.

This year, Vinalines targets to make a pre-tax profit of VND120 billion (USD5.71 million) on revenues of VND27.2 trillion (USD1.29 billion).

The company will focus on speeding up the implementation of projects, including the second phase of the Cai Cui Seaport and the first phases of the Saigon-Hiep Phuoc and Son Tra ports.

In the first six months of 2012, Vinalines will turn a number of its affiliates into joint stock and limited member companies.