Ministry of Industry and Trade revokes Hai Ha Petro's petroleum wholesale license

On January 12, the Ministry of Industry and Trade issued Decision No. 63/QD-BCT on revoking the Certificate of eligibility to act as a petroleum wholesaler for Hai Ha Waterway Transport Company Limited (headquartered at No. 132, Zone 6, Diem Dien Town, Thai Thuy District, Thai Binh Province). The Decision takes effect from the date of signing.

On the same day, the Ministry of Industry and Trade sent a document to the Vietnam National Petroleum Group, Vietnam Oil Corporation - Joint Stock Company, and Military Petroleum Corporation Limited Liability Company to ensure the supply of gasoline and oil in Thai Binh, Hai Phong, Hanoi, and Quang Ninh.

In carrying out state management of petroleum business activities, the Ministry of Industry and Trade requests enterprises to prepare goods to increase the supply of petroleum to petroleum retail stores in the distribution system of enterprises in Thai Binh province, Hai Phong city, Hanoi city and Quang Ninh province, contributing to ensuring the supply of petroleum for the domestic market, preventing a shortage of petroleum supply in the above provinces and cities, especially during the upcoming Lunar New Year 2024.

According to the inspection results, 7 out of 15 key petroleum traders used the price stabilization fund for the wrong purpose of price stabilization, not transferring it to the price stabilization fund account but leaving it in the business's regular payment account for many periods before returning it to the price stabilization fund, with a total amount of more than 7,927 billion VND.

Hai Ha Waterway Transport Company Limited set aside more than VND4.7 billion for the price stabilization fund than the volume. This enterprise has also been fined by state agencies four times.

Regarding the violations of Hai Ha Waterway Transport Company Limited, the Government Inspectorate has transferred the case file to the Ministry of Public Security's investigation agency for consideration and handling according to legal regulations. Hai Ha Waterway Transport Company Limited is being examined for violations of the law in declaring and paying environmental protection tax on gasoline and oil; and using the price stabilization fund for the wrong purpose of price stabilization.

Regarding finance, Hai Ha Waterway Transport Company Limited recorded a paradox when revenue increased sharply, profit decreased in 2022.

Hai Ha Waterway Transport Company Limited is one of the 38 largest petroleum import and export enterprises in the country. By the end of 2022, the Company's net revenue from sales and service provision reached VND 30,060 billion, an increase of more than VND 11,000 billion compared to 2021, corresponding to a growth rate of about 58% after 1 year.

However, due to operating below cost price, Hai Ha Waterway Transport Company Limited suffered a gross loss of more than VND 973 billion, while in 2021, this petroleum hub had a gross loss of VND 18 billion.

Along with that, interest expenses, sales expenses, and business management expenses at Hai Ha Waterway Transport Company Limited all "swelled". As a result, the company recorded a loss after tax of nearly VND 2,574 billion in 2022. The previous year, the company lost approximately VND 155 billion.

Losses in the last 2 years contributed to the accumulated loss of Hai Ha Waterway Transport Company Limited as of December 31, 2022 to VND 4,576 billion. With the owner's equity at only VND 454 billion, the company's equity was negative to VND 4,122 billion by the end of 2022.

In particular, the Thai Binh Provincial Tax Department has also announced a list of a series of tax-indebted companies, including Hai Ha Waterway Transport Company Limited.

On September 19, 2023, the Thai Binh Provincial Tax Department applied enforcement measures to enforce administrative decisions on tax management against Hai Ha Waterway Transport Company Limited. Specifically: Enforcement by means of withdrawing money from the account, freezing the company's account according to 6 decisions, continuously from June 26 to August 28, 2023.

In addition, the Thai Binh Provincial Tax Department also enforced the measure of stopping the use of invoices with enterprises according to the decision dated September 12, 2023 (effective from September 13, 2023 to September 12, 2024).

On August 30, 2023, the Thai Binh Provincial Tax Department sent a notice to the Immigration Department - Ministry of Public Security requesting temporary suspension of exit for the legal representative of Hai Ha Waterway Transport Company Limited, currently Ms. Tran Tuyet Mai.

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