Falling market prices, inventory devaluation and
foreign exchange fluctuations are among the main reasons cited by many
listed firms for their poor showing in the last quarter in 2008.


Tay Ninh Rubber Joint Stock Co. (TRC) announced its
after-tax profit in the fourth quarter last year was VND55 billion
(US$3.14 million), a decline of 31.5 percent from the previous quarter.


A fall in international rubber prices at the end of
last year, caused by the global economic recession, forced Tay Ninh to
cut its average market price from VND50 million ($2,850) per ton in the
third quarter to VND30 million in the fourth quarter.


Other listed rubber producers like Dong Phu Rubber
Joint Stock Co. (DPR), Hoa Binh Rubber Joint Stock Co. (HRC) and Thong
Nhat Rubber Joint Stock Co. (TNC) also blamed their fourth quarter
losses on falling international prices.


Meanwhile, steelmaker Hoa Phat Group (HPG) announced a
heavy fourth-quarter loss of VND232 billion ($13.3 million) last year.
It blamed this on the fact that imported prices were even lower than
production costs.


Fertilizer stocks also blamed a sharp decline in
ammonia, urea and NPK fertilizers on international markets at the end
of last year for their losses. PetroVietnam Fertilizer and Chemical
Joint Stock Co. (DPM), Vietnam’s largest fertilizer firm, posted a loss
of VND87 billion in the fourth quarter.


Other companies had to provide for inventory
devaluations, also caused by falling international prices. Rang Dong
Light Source and Vacuum Flask Joint Stock Co. (RAL) said it lost VND8
billion in the last fourth quarter since it used VND16 billion to set
up a provisional fund of inventory devaluation.


A similar move cost Ho Chi Minh City Metal Corp. (HMC)
VND25 billion as it used more than VND86 billion to provide for
inventory devaluation.


The market’s 66 percent nosedive last year saw
earnings of listed companies, who invested previous earnings in other
shares last year, plunge sharply.


PetroVietnam Finance Joint Stock Corp. (PVF) announced
a loss of VND405 billion in the fourth quarter as it set up a provision
fund for securities devaluation.


Refrigeration Electrical Engineering Corp. (REE)
reported it earned net profits of VND12.5 billion from revenues of
VND330 billion in the last quarter of 2008.


But the firm lost VND139 billion overall last year as
it had set up provisional funds worth VND72.05 billion for securities
devaluation and other investment on the OTC (over the counter) market.
The total of such provisions made from the beginning of the year to the
fourth quarter was VND467.13 billion, and was the main reason for the
loss incurred, REE said on the exchange’s website.


The air-conditioner maker will be placed under scrutiny by the Ho Chi Minh Stock Exchange.


Many listed firms said their earnings took a huge hit
because of foreign currency fluctuations last year. Pha Lai Thermal
Power (PPC) took a hit as its loan of 36.2 billion Japanese yen soared
after the exchange rate rose by 30 percent to VND185 per yen on
December 31, 2008.


Dollar fluctuations last year forced Vietnam Petroleum
Transport Joint Stock Co. (VIP) to set up a VND30 billion provisional
fund to cope with them, given its long-term dollar loans used for
building two oil tanks – Petrolimex 06 and Petrolimex 10.