Corporation seeks involvement in Hanoi railway station, proposes it purchase Phu Quoc Airport, and sees major leadership changes at one of its subsidiaries.
The T&T Corporation has had its hands full lately, with a number of business moves being made.
It recently sent a proposal to the Ministry of Transport (MoT) regarding it investing in the urban railway station on Le Duan Street in Hanoi, committing to strictly implementing existing regulations on construction investment and the schedule stipulated by MoT.
Mr. Do Quang Hien, Chairman of the T&T Corporation, also proposed in March that the corporation take over the operation of Phu Quoc Airport on Phu Quoc Island, off the coast of the Mekong Delta’s Kien Giang province, suggesting two alternative methods: purchasing the airport outright, or obtaining concessions to develop the airport for a certain period of time.
Meanwhile, at the beginning of May Mr. Hien resigned from his positions as Chairman and member of the Board of Directors (BOD) at its subsidiary the Binh An Seafood Joint Stock Company (Bianfishco) after two and a half years as Chairman. Mr. Mai Xuan Son, Deputy General Manager, took over his position on the BOD. Another member of the BOD, Mr. Nguyen Van Le, was dismissed and replaced by Ms. Hoang Thi Mai.
In 2012 Bianfishco was on the verge on bankruptcy. The Saigon - Hanoi Commercial Joint Stock Bank (SHB), a member of the T&T Corporation, became a major shareholder and restructured the company’s management. In October 2012 a new BOD of five members was appointed for the 2012 - 2017 term, including two members from SHB: Mr. Hien and Mr. Le.
Its audited report released at the end of 2014 noted the possibility of it ceasing its business activities due to losses and debts.
Bianfishco incurred net losses after tax of VND426 billion ($19.8 million) in 2014 and had accumulated losses of VND2.5 trillion ($118 million) as at December 31,2014. Current liabilities and total liabilities exceed current assets and total assets by VND2.1 trillion ($101.3 million) and VND1.9 trillion ($92.8 million), respectively. Moreover, the majority of its loans and short-term debts are overdue.
Established in 2007, Bianfishco was founded by Ms. Nguyen Thi Dieu Hien, with charter capital of VND500 billion ($23.2 million). When the company initially faced problems, Mr. Tran Van Tri, Ms. Hien’s husband, took over the management of the company and worked with creditors. After restructuring, SHB become its largest shareholder, with 50 per cent. Mr. Tri holds just 2 per cent.