Domestic airlines may face difficulties in achieving high revenues in 2019 and profits are anticipated come mainly from the decline in oil prices and service fees from international visitors.
Located in Thanh Hoa province, Nghi Son oil refinery and petrochemical complex is the biggest project in terms of construction scale and total investment capital.
In the first half of 2018, revenue of Binh Son Refining and Petrochemical (BSR) which operates Vietnam’s first Dung Quat oil refinery is estimated to reach up to $2.4 billion, fulfilling 71 per cent of its full year target.
Inflation in Vietnam has been on a gradual uptrend, reaching 3.9 per cent this May and expected to be 3.6 per cent in 2018, according to ANZ bank.
National Oil and Gas Group (PetroVietnam) has sold the remaining 29 per cent stake in Long Son Petrochemicals project to Thailand-based Siam Cement Group at price of VND2,052 billion or equivalent to $90.3 million.
The competition for petrol market shares between Petrolimex and PV Oil has been lasting over a long period of time and becoming more intense with the participation of JXTG Nippon Oil & Energy and Idemitsu Kosan, the two Japanese giant petroleum companies.
Many state-owned enterprises’ shares, which were listed on bourse, have fallen sharply after these enterprises had conducted their IPOs successfully.
The majority of airlines operating expenses are fuel costs, which has increased 41 percent since the beginning of the year and it is predicted to continue increasing in the near future.
Oil prices have approached $70 a barrel and Vietjet Air will have to adjust its profit plan in case they exceed this threshold.
Keppel Land, through its wholly-owned subsidiary Oil (Asia) Pte, has acquired the remaining 10 per cent stake in Jencity, which holds Saigon Sports City, from Jenclub for a deal value of approximately US$11.4 million.
Nghi Son refinery, Vietnam’s second oil refinery, is ready for commercial start-up from February 28, according to the latest announcement released by the Vietnam National Oil and Gas Group (PetroVietnam).
After a decade of being licensed, Long Son Petrochemicals (LSP) was officially launched, expected to be completed and put into operation in 2022.
Siam Cement Group has expressed interest in acquiring the remaining 21 percent stake currently held by PetroVietnam in the Long Son petrochemical complex.
When it comes to mergers and acquisitions (M&A), investors often prefer to take over 50% of the shares to become controlling shareholder; however, the Japanese oil giant JXTG has not intended to acquire majority stake in Petrolimex.
