Viettonkin Consulting is proud to announce three new strategic partnerships with Robert Yam Co., Oborseana, and CorpelServe, further strengthening our commitment to delivering seamless cross-border business expansion services to clients across Asia.

Robert Yam Co. (Singapore)

Established in Singapore, Robert Yam Co. is a reputable firm offering audit, tax, and accounting services, led by Executive Chairman Robert Yam, PBM, a seasoned professional with decades of leadership experience in the financial services sector. Through this referral partnership, Viettonkin will support Robert Yam Co.'s clients seeking to enter the Vietnamese market, while Robert Yam Co. will assist Viettonkin clients expanding into Singapore. This mutual collaboration ensures our clients receive reliable support in two of Southeast Asia’s leading markets.

Oborseana (Regional)

Oborseana is a strategic initiative inspired by the RCEP free trade agreement. It is led by Global Chair and President Dr. Alan Hoo, and aims to foster stronger connectivity and collaboration among Asia-Pacific economies. Viettonkin joins Oborseana as part of a broader alliance, opening up channels for regional engagement and client access to new opportunities under the RCEP framework.

CorpelServe (India)

CorpelServe is an India-based market entry consultancy headed by CEO Pankaj Hasija, specializing in India-bound FDIs, cross-border transactions, and business support services. The partnership between Viettonkin and CorpelServe offers clients 360° support, covering everything from legal and accounting services to HR, incorporation, and market readiness advisory — ensuring streamlined and cost-effective entry into India and Southeast Asia.

Why This Matters for You

These partnerships offer enhanced regional expertise, complementary services, and expanded market reach, allowing current and potential clients of Viettonkin to receive more holistic, cross-border support for their business growth in Singapore, Vietnam, Malaysia, India, and so on.

We look forward to working closely with our new partners and continuing to provide world-class service for businesses seeking to expand across Asia.

VNG has carved its path as a leading tech juggernaut in Vietnam, earning acclaim for its innovations in online gaming, communications & media, fintech, and digital business. What brings us here today is an exciting moment in VNG's history - the company's recent filing for an Initial Public Offering (IPO). This article peels back the layers of VNG's journey, shedding light on the implications of this IPO for both the company and the broader Vietnamese tech landscape. Join us as we navigate through the past, present, and future of VNG, uncovering the transformative potential of this IPO for one of Vietnam's foremost tech giants, and its resonance with recent developments such as VinFast's foray into the electric vehicle market.

VNG's Journey to Prominence

The story of VNG's ascent to prominence in Vietnam's tech industry is a compelling narrative backed by a series of milestones and strategic moves. Founded in 2004 and headquartered in Ho Chi Minh City, VNG quickly positioned itself as a tech leader. With its extensive business portfolio, VNG's diversified approach has contributed significantly to its status as Vietnam's first unicorn - a startup valued at 1 billion USD or more.

Revolutionizing the Gaming Landscape

A pivotal aspect of VNG's trajectory has been its innovative strides in the realm of online gaming. From its inception, the company astutely identified the burgeoning interest in gaming within Vietnam and ventured into this arena with the groundbreaking success of "Swordsman Online," a game that swiftly propelled VNG to the forefront of the industry. Fast forward to 2023, and VNG has set an ambitious revenue target of US$393.3 million for this year, reflecting a substantial 19% surge compared to its 2022 earnings. Furthermore, VNG's influence extends beyond borders, with nine game studios strategically positioned in key locations such as Thailand, Singapore, Malaysia, Taipei, and China, reaffirming its unwavering commitment to delivering captivating gaming experiences to a global audience.

The Triumph of Zalo and ZingMP3

Another standout achievement was the development and launch of Zalo, a messaging application that took Vietnam by storm. With more than 75 million monthly active users, Zalo became a dominant force in the Vietnamese tech scene, rivaling international giants. VNG's foresight in recognizing the potential for such a platform among Vietnamese users paid off handsomely.

In the fintech realm, VNG made strides with ZaloPay - an e-wallet that has exhibited rapid growth in Vietnam's digital payments landscape. As online transactions surged, VNG capitalized on the trend by providing users with a secure and convenient payment solution.

Meanwhile, VNG's ZingMP3 emerged as a leading online music platform in Vietnam, boasting more than 28 million monthly active users. The platform not only served as a source of entertainment but also showcased VNG's commitment to diversifying its offerings.

These achievements underscore VNG's remarkable journey to prominence in Vietnam's tech sector. Its ability to navigate changing trends and pioneer innovative solutions has not only set it apart but also positioned it as a key player in the dynamic tech landscape of Vietnam. This journey lays the foundation for a deeper exploration of VNG's recent milestone - a recently filed IPO that holds the potential to redefine the company's trajectory and influence in the tech industry.

VNG's IPO - A Game Changer

VNG's recently filed IPO marks a pivotal moment in the company's history, underlining its commitment to growth and innovation. This transformative step has been carefully planned, reflecting VNG's strategic vision and its significance within the tech industry.

A Bold Step onto the Global Stage

In 2017, VNG set its sights on the global stage, signing a preliminary agreement with Nasdaq to explore the possibility of listing in the United States. Fast forward to August 23, 2023, when VNG submitted an IPO application in New York through ListCo VNG Limited, which is listed on the NASDAQ Global Select market under the trading code VNZ. This bold move demonstrates VNG's readiness to embrace international financial markets and capitalize on new opportunities.

The IPO process entails offering more than 21,687,082 Class A shares to the public. Notably, investors acquiring Class A shares through the IPO will enjoy 15.8% of economic benefits at ListCo VNG Limited and 7.7% of voting rights at ListCo VNG Limited. This structure reflects VNG's commitment to inclusivity and engaging a wide spectrum of stakeholders in its journey.

VNG's IPO is expected to be a resounding success, potentially valuing ListCo VNG Limited at an impressive 2-3 billion USD and mobilizing around 300 million USD. While the IPO price has not been determined, the offering holds great promise for both VNG and its investors.

Navigating the Complexity of Growth

However, the road to IPO success comes with its intricacies. The underwriters for this monumental IPO include Citigroup, Morgan Stanley, UBS, and Bank of America, underscoring the global interest in VNG's growth story.

One of the distinctive aspects of VNG's IPO journey is its commitment to balance economic interests and voting rights. Initial foreign investors, including Tencent, GIC, Seletar Investment Pte Ltd, and Ant Group, will collectively hold 84.2% of economic interests in ListCo VNG Limited and 41.3% of voting rights. This measured approach ensures that VNG maintains its strategic direction while benefiting from international expertise and resources.

Furthermore, ListCo VNG Limited will issue an additional 7.5 million shares to Tencent following the IPO's successful completion. Consequently, Tencent and Ant Group will own nearly 73 million Class A shares, equivalent to 53.1% of ListCo VNG Limited's economic interests. Despite this substantial economic stake, Tencent and Ant Group will hold 26% of voting rights. With a voting share of 51%, VNG's founders, Le Hong Minh and Vuong Quang Khai, continue to be the key voices in shaping the company's future and pivotal decisions.

VNG's Future Outlook

With a recent filing for its Initial Public Offering (IPO), VNG is standing on the cusp of a future brimming with unprecedented growth and innovation. The IPO serves as a strategic maneuver that strategically places the company for expansion while unlocking a realm of fresh opportunities.

Unveiling New Geographical Frontiers

One paramount facet of VNG's post-IPO outlook revolves around its potential for geographical expansion. Bolstered by augmented financial resources, the company is primed to venture into new markets and regions, solidifying its global footprint. This expansion entails the introduction of VNG's diverse range of products and services to a wider audience, diversifying its revenue streams and mitigating the risks associated with market concentration.

Furthermore, the infusion of capital stemming from the IPO empowers VNG to spearhead innovation and foster cutting-edge technologies. In an ever-evolving technological landscape, VNG's investments in research and development can yield groundbreaking solutions and platforms, tailor-made to meet evolving consumer demands. This commitment to innovation not only enhances VNG's competitive edge but also contributes to the broader tech ecosystem's advancement.

VNG's Role in Elevating the Tech Ecosystem

Beyond its individual growth, VNG's post-IPO journey plays a pivotal role in the ongoing development of Vietnam's tech ecosystem. As a trailblazing tech firm, VNG sets the benchmark for innovation and entrepreneurship within the country. Its resounding success stands as a beacon of inspiration for startups and emerging tech entities, nurturing a culture of innovation and ambition throughout Vietnam.

Looking ahead, VNG is strategically poised to continue shaping the tech industry in Vietnam and beyond. Its trajectory is characterized by ceaseless growth, relentless innovation, and substantial contributions to the development of the tech ecosystem within its home country. As VNG embarks on its next chapter, the tech world watches with eager anticipation, ready to witness the unfolding of the next remarkable chapter in this extraordinary success story.

Final Thoughts

VNG's Initial Public Offering (IPO) marks a watershed moment in Vietnam’s tech industry. With a rich history and a diverse portfolio of online games, communications, fintech, and digital business ventures, VNG has solidified its position as a tech giant in Vietnam. The IPO signifies not only a significant financial milestone but also a testament to VNG's pivotal role in shaping the tech landscape of the nation.

As VNG embarks on its journey post-IPO, the possibilities are endless. With the backing of investors and newfound resources, the company is poised for remarkable growth and innovation, paving the way for a brighter future.

For those looking to explore the investment opportunities arising from VNG's IPO and navigate the dynamic Vietnamese tech sector, Viettonkin stands as a trusted partner with expertise and insights. Connect with us for guidance and support in seizing the exciting prospects offered by VNG and the broader tech landscape in Vietnam. Your journey towards tech investment success starts here.

In the heart of Vietnam's burgeoning economic landscape, unfolds a remarkable tale of innovation, determination, and international triumph. VinFast, a subsidiary of Vingroup and Vietnam's largest electric vehicle manufacturer, has recently etched its presence on the Nasdaq, boasting a market capitalization exceeding 23 billion USD.

The resonating sound of the bell at Nasdaq, signifying its official listing on the world's most substantial capital market, stands as a historic milestone in VinFast's trajectory. This achievement not only ushers in novel prospects for VinFast to access international capital markets, thus propelling its robust future development, but also serves as a pioneering emblem for Vietnamese brands venturing across boundaries.

The odyssey of VinFast onto the global canvas

Emerged in 2017, VinFast swiftly ascended as Vietnam's premier electric vehicle (EV) manufacturer. Orchestrating a comprehensive EV ecosystem encompassing SUVs, scooters, and buses, VinFast's influence stretched from Vietnam to North America and, soon, Europe. The state-of-the-art automobile facility in Hai Phong, boasting an impressive automation rate of 90%, coupled with an annual production capacity of up to 300,000 vehicles, exemplifies its unwavering commitment to cutting-edge technology and efficiency.

By the close of 2022, VinFast unveiled its filing of a registration application under Form F-1 with the US Securities Exchange Commission (SEC) for an initial public offering (IPO).

However, in early June 2023, VinFast made a strategic pivot by retracting its previously submitted IPO application from December 2022 and opted to pursue a new avenue by merging with Black Spade Company for its US listing endeavors. This transition underscores a procedural shift in VinFast's roadmap towards listing in the US market, while reinforcing the brand's adaptive approach to strategic growth.

In the middle of May 2023, the strategic merger between VinFast and Black Spade Acquisition Co (traded as BSAQ on NYSE) was officially announced. Following this transaction, VinFast commanded a valuation surpassing 23 billion USD, fortified by its intent to debut on the US stock exchange.

According to experts, this entails a distinct listing method known as a SPAC business, undertaken through Black Spade. This echoes a growing trend among Asian startups seeking US stock market presence. (https://michaelpalance.com) For instance, Grab Holdings opted to amalgamate with Altimeter Growth, culminating in GRAB shares being traded on the Nasdaq stock exchange in December 2021. This contrasts with traditional IPOs, where companies issue shares to the public before stock exchange listing.

Unlike traditional IPOs, the SPAC route involves merging with a SPAC business and subsequently converting SPAC-listed shares into the company's own shares. This expedited process can be accomplished within a few months, considerably shorter than the conventional half-year IPO registration cycle with the SEC.

On August 15, 2023, the resonant sound of VinFast's launch bell reverberated across the US stock exchange Nasdaq Global Select Market, solidifying its status as a publicly listed company. With a market capitalization exceeding 23 billion USD and the trading code VFS, this significant event immediately followed VinFast's successful amalgamation with Black Spade on August 14, 2023.

Decoding Vinfast's SPAC choice 

The dichotomy between IPOs and SPAC listings represents divergent pathways toward the same objective.

Notably, a backdoor listing involves the merger of a non-public enterprise with a publicly-listed entity, circumventing the necessity for an initial public offering. This approach proves viable when timing, conditions, or readiness for an IPO are incongruent. Through this merger, the existing listed entity incorporates the non-public company, intertwining their assets and operations. Shareholders of the listed company receive shares in proportion to the agreed-upon ratio, facilitating the transition.

Evidently, such a stratagem diverges from the prevailing IPO-centered discourse in Vietnam. Hence, strategic clarity must precede corporate planning, as each trajectory presents distinct merits and drawbacks. Primarily, the variance lies in the capital infusion; an IPO typically injects immediate funds via share issuance, while SPAC listings necessitate subsequent fund-raising initiatives to maintain financial momentum.

Furthermore, the temporal and procedural disparities favor the SPAC approach, offering shorter  timelines and higher likelihood of success, albeit demanding robust investment in maintaining investor relations and financial transparency.

To encapsulate, SPACs surmount several impediments intrinsic to traditional IPOs, including procedural intricacies, cost factors, and temporal concerns. These factors collectively shape a more favorable landscape for companies eyeing the stock market for capital growth.

New way of capital generation for Vietnamese ventures

In the wake of VinFast's resounding success, the landscape of capital raising for Vietnamese ventures is undergoing a paradigm shift. As enterprises in Vietnam explore avenues to scale and innovate, the realm of capital acquisition is no longer a conventional hurdle, but an opportunity to redefine norms.

The journey of VinFast underscores the critical role that SPACs can play in enabling Vietnamese startups to access international markets. While traditional IPOs remain a hallmark of corporate advancement, the unique attributes of SPAC listings present an attractive alternative, replete with swifter timelines and streamlined procedures. The ability to sidestep the prolonged IPO process and the potential to garner immediate attention from investors is an invaluable proposition for startups that seek agility without compromising on their growth trajectory.

Loship, a burgeoning Vietnamese freight forwarding enterprise, sets its sights on a 2024 listing on the New York Stock Exchange (NYSE), contingent on achieving profitability. This impending IPO holds the potential to galvanize Loship's enduring expansion.

However, it cannot be denied that venturing into the global market poses distinct challenges, primarily stemming from the unfamiliarity of Southeast Asian businesses among global investors. This hurdle calls for alternative capital procurement strategies, with SPACs emerging as a viable conduit. Nguyen Hoang Trung, CEO and Co-founder of Loship, reinforces the pragmatic appeal of SPACs for Vietnamese startups like his own.

Likewise, VNG Joint Stock Company contemplates an NYSE listing through a SPAC, projecting a valuation ranging from 2 to 3 billion USD.

The strategic adoption of SPACs by companies like VinFast can serve as an inspiration for others to explore this route. While the journey of each company is unique, the precedent set by these pioneers demonstrates that innovation is not limited to product design or technology—it extends to the very core of business models, financial strategies, and expansion plans.

The evolution of capital raising in Vietnam's startup landscape is underway, and VinFast's listing exemplifies a new era of global engagement in this regard. This era invites Vietnamese entrepreneurs to reimagine their trajectories, embrace novel strategies, and march forward with unwavering confidence in their vision.

As the Vietnamese startup ecosystem continues to mature, the lessons from VinFast's strategic choices resonate loudly: progress is never linear, and innovation extends far beyond products. It is a journey marked by resilience, adaptability, and the audacity to challenge conventions.

In the end, it's not solely about capital; it's about the transformational power that capital can effectuate. It's about scaling aspirations, expanding reach, and making indelible marks on the global stage. With the right blend of innovation, strategic vision, and determination, Vietnamese startups can carve their narratives of success, much like VinFast has done, and propel the nation's entrepreneurial spirit into a future unbound by borders.

Key Considerations for Companies Seeking SPAC Listings

For companies in Vietnam or elsewhere considering SPAC listings, certain key factors merit attention:

Final thoughts 

In retrospect, VinFast's awe-inspiring journey to the pinnacle of the US stock market is symbolic of Vietnam's growing presence in global business arenas. 

In closing, the VinFast saga resounds as a testament to innovation, adaptability, and the bold pursuit of success. This historic endeavor illuminates a transformative path for Vietnamese businesses, reflecting the maturing landscape of global entrepreneurship. To join this evolution, explore the possibilities and chart your course to international prominence.Unlock the potential of global expansion with expert guidance. Contact us at Viettonkin today to discuss the possibility of leveraging SPAC to bring your company to the global market.

Waiting for capital appraisal

According to the news of Investment Newspaper, last week the Ministry of Transport issued the Official Letter No. 27/BGTVT-KHDT to the Ministry of Finance related to the appraisal process of residual capital utilization of the 2nd ADB Loan Agreement (3391-VIE), Ben Luc - Long Thanh Expressway Construction Project.

Thereof, the Ministry of Transport proposed the Ministry of Finance to preside over and soon complete the procedures for appraising the residual capital utilization of the Asian Development Bank loan agreement – 2nd time ADB (3391-VIE) for underfunded items of Ben Luc - Long Thanh Expressway Construction Project as a basis for the submission to the Prime Minister for their decision.

This is one of the decisive factors impacting the completion and putting Ben Luc - Long Thanh Expressway Construction Project into operation on December 31, 2023, said Mr. Le Anh Tuan, Vice Minister of Transport.

The residual capital utilization after bidding in the Agreement l3391- VIE worth about USD 74 million to complete Ben Luc - Long Thanh Expressway Construction Project has been proposed by the Ministry of Transport to the appropriate authorities for approval from August 2020. Particularly, the Ministry of Transport requested the Government Office to summarize and submit the plan to the Prime Minister for early approval of capital utilization from the 2nd ADB loan agreement (3391-VIE) to complete the uncompleted works of the 1st ADB Loan Agreement (2730-VIE).

The Ministry of Transport also wants the Government to allow the residual capital utilization from ADB loan agreement to implement the items of toll booths, monitoring center buildings, toll station operating offices because it is not allowed to use the loan funds from the Japan International Cooperation Agency (JICA).

It is known that the total estimated value of the above items is about USD 74 million, of which the capital is expected to be spent on construction and installation bidding packages, unfinished consultancy during the loan validity period of the 1st ADB Loan Agreement (2730-VIE) about USD 67.42 million and construction items of toll booths, monitoring center buildings, toll station operating offices... serving toll collection for the project's payback with the value of about USD 6.6 million.

Ben Luc - Long Thanh Expressway Construction Project, invested by Vietnam Expressway Development Investment Corporation (VEC), was started in July 2014, the works must be completed in 2018 as schedule. The project is divided into 3 sections, in which the middle section (mainly large river bridges) and the western and eastern sections.

According to VEC, the first section (west) is 21.1 km long, including 5 bidding packages of A1, A2-1, A2-2, A3 and A4 of which ADB's loan was utilized through the 1st Loan Agreement No. 2730-VIE worth about USD 350 million. Because this loan agreement expired after June 30, 2019, the bidding packages were stopped from July 2019 when the construction volume reached 87.2%, 50.62% of loan agreements was disbursed.

The 02^nd section (middle) is 10.7 km long, mainly the big river crossing bridges, with very high technical complexity, including 3 packages of J1, J2 and J3, of which JICA's ODA loan was utilized. Bidding packages have been stopped since 2019 due to lack of capital, construction volume reached 84.6%.

The 3^rd section (East) is 25.3 km long, including 3 packages of A5, A6 and A7, of which ADB loans was utilized through the 2nd Loan Agreement No. 3391-VIE worth about USD 297 million, which has been extended until December 31, 2023. These are the only 3 bidding packages that have been financed for contractors to carry out construction, but the implementation progress was delayed, the construction volume was about 50% and was being severely affected by Covid-19 epidemic.

In the terms of nature, the residual capital utilization after the bidding of the 2nd ADB Loan Agreement (3391-VIE) to complete the construction and installation bidding packages of the 1st Loan Agreement No. 2730-VIE and construction items of toll booths, monitoring center buildings, toll station operating offices, do not change the total investment of the project.

"in addition, this was also the only capital source that the investor could rely on at this time to offset for the expiration of the 1st ADB Loan Agreement No. (2730-VIE) while the project was still under construction”, reported the representative VEC.

Gradually revealing the escape way 

In order to obtain enough legal basis for the Ministry of Finance to conduct the appraisal of the residual capital utilization of the 2nd ADB Loan Agreement (3391-VIE), on December 31, 2021, the Minister of Transport signed the Decision No. 2323/QD - BGTVT approved the financial plan to combine cash flow for 5 expressway projects invested by VEC, serving the appraisal of capital utilization of the 2nd ADB Loan Agreement (3391-VIE) for Ben Luc - Long Thanh Expressway Construction Project.

Thereby, 5 expressway projects were managed by the Ministry of Transport, and invested by VEC, including Cau Gie - Ninh Binh expressway which was put into operation in 2011, Noi Bai - Lao Cai expressway in 2014, Ho Chi Minh City - Long Thanh - Dau Giay Expressway in 2014, Da Nang - Quang Ngai Expressway in 2017, Ben Luc - Long Thanh Expressway is being implemented and is expected to be put into operation in 2024.

It is known that there are 11 input figures temporarily determined by the Ministry of Transport to calculate the financial plan of VEC’s 5 projects at the present time, including: total cost of implementation; investment capital structure; time of putting the works into operation; vehicle traffic; toll rates; charge rate increase; loan repayment Libor interest rates from ADB and WB; exchange rate; inflation rate; construction price slippage; maintenance, operation and exploitation costs.

Out of the above input costs, the total cost of implementing 5 projects invested by VEC is temporarily determined the Ministry of Transport, it is fully updated according to the contract value/implementation value/the final settlement value of packages of construction, consultancy, and other costs as of December 31, 2021 is VND 104,998 billion, including Cau Gie - Ninh Binh expressway: VND 8,579 billion; Noi Bai - Lao Cai expressway: VND 26,737 billion; HCMC - Long Thanh - Dau Giay expressway: VND 18,058 billion; Da Nang - Quang Ngai expressway: VND 25,099 billion; Ben Luc - Long Thanh project (under construction): VND 26,525 billion.

For the investment capital structure, the Ministry of Transport temporarily determines the percentage of state capital and capital mobilized by VEC accounting for 23.3% and 76.7% for Cau Gie - Ninh Binh expressway project; 19.9% and 80.1% for Noi Bai - Lao Cai expressway project; 33.9% and 64.1% for Ho Chi Minh City - Long Thanh - Dau Giay expressway project; 73.4% and 26.6% for Da Nang - Quang Ngai Expressway Project; 61.3% and 38.7% for Ben Luc - Long Thanh expressway project 

Another important input figures is the rate for 5 projects to calculate the payback basis applied by the Ministry of Transport under the Decision No. 3789/QD-BGTVT dated November 23, 2016 of the Ministry of Transport, in which VND 1,500/PCU/km for Cau Gie - Ninh Binh expressway, VND 1,250/PCU/km for Noi Bai - Lao Cai expressway, VND 2,000/PCU/km for HCMC - Long Thanh - Dau Giay expressway, VND 1,500/PCU/km for Da Nang - Quang Ngai Expressway, VND 2,000/PCU/km for Ben Luc - Long Thanh Expressway. The increase rate is once every 3 years, 12% each time of increase.

With the above determined and forecasted input figures, the Ministry of Transport determines that after-tax cash flows for 5 expressway projects invested by VEC will be lack of VND 518 billion in 2022, VND 167 billion in 2023. However, the accumulated after-tax cash flow every year is always positive, specifically: by 2022, it will be VND 9,631 billion; by 2023, it will be VND 9,464 billion; by 2025, VND 12,534 billion.

"With the above after tax cash flow results, VEC ensures the loan repayment of the 2nd ADB Loan Agreement (3391-VIE) for Ben Luc - Long Thanh Expressway Construction Project", affirmed Mr. Le Anh Tuan, Vice Minister of Transport.

It should be further said that, the pressure on the repayment of contractor debts, especially Japanese contractors for the construction of Ben Luc - Long Thanh Expressway Construction Project was relieved after the investor was allowed to temporarily use the toll collection sources, the sums have not been due.

In an offficial letter issued at the end of November 2021, the Committee for the Management of State Capital at Enterprises (the governing body) agreed to let VEC temporarily utilize the fee collection source, undue sum to repay the contractor of Ben Luc - Long Thanh Expressway Construction Project.

Such proposal is to effectively utilize the capital, ensure the project objectives, avoid complaints, incur costs that increase the total project investment, cause damages to VEC and the state budget capital for VEC, affecting the reputation of the Government of Vietnam on donors.

As the mechanism problems, VEC did not have funds to pay for the completed volumes at the Ben Luc - Long Thanh Expressway Construction Project. From mid-2020 until now, Japanese contractors have asked VEC to pay for the completed volume and incurred costs as of April 2021, about USD 33 million.

“This is the minimum sum required to finance to immediately pay the completed volume of Japanese contractors and restart the project construction. VEC will continue to work with contractors J1 and J3, JICA to discuss and negotiate in requesting contractor J3 to continue performing the work according to the signed contract, "reported VEC leader.

According to the financial plan, VEC is submitting to the appropriate authority, accumulated VEC’s toll cash flow in 2021 is about VND 7,504 billion (after all due debts have been paid off) and accumulated cash flow of VEC in 2022 is VND 6,546 billion.

In case VEC temporarily utilizes the idle money that has not yet been due to repay debt with a sum of about VND 429 billion to remove the difficulties and obstacles in funding for Ben Luc - Long Thanh Expressway Construction Project, will not affect VEC's current liability repayment.

Source : Baodautu