There are 12 public companies holding over VND1 trillion (USD47.6 million) in cash, but most of them are also big debtors.

Besides the cash flow generated from business operations, the business also raised a large amount of capital through the issuance of shares and debt papers.

There are two companies that hold more than VND10 trillion in cash, Masan Group (MSN) and PV Gas (GAS), with respective cash values of VND14.635 trillion and VND10.77 trillion.

According to MSN statements of cash flows, in Q1/2012, Masan Group had received VND6 trillion from issuing short-and long-term debt papers.

MSN has VND1.755 trillion in cash, VND11.712 trillion in cash equivalents, and VND1.168 trillion cash deposited for over 3 months at local banks.

The amount of deposit will likely be injected in the Nui Phao project through MSM subsidiary Masan Resources and the implementation of future merger and acquisitions (M&A) deals.

GAS’s amount of cash comes primarily from profits and its long-term loan in 2011.

In addition to GAS, a member of the Vietnam National Oil and Gas Group (PetroVietnam), there are three other members of PetroVietnam on the 12-member list, PetroVietnam Technical Service (PVS), PetroVietnam Construction (PVX) and Phu My Fertilizer Co (DPM).

The two construction giants, PVX and Vinaconex (VCG), have entered the list after offering shares to raise capital late last year.

R.E.E Electric Appliances Joint Stock Co (REE) earned VND500 billion from divestments in Sacombank in 2011. Confectionery maker Kinh Do (KDC) earned VND660 billion the issuance of a more than 10 percent stake to Ezaki Glico.

Big debtors

The 12 listed enterprises with cash holdings totaling VND54 trillion have borrowed more than VND80 trillion (USD3.82 billion).

MSN and GAS, the two companies with the most abundant cash, have debts equivalent to their available cash.

However, about 60 percent of MSN loans, mainly of the long-term variety, can be converted into shares.

Vinaconex and HAGL also owe more than VND12 trillion each.

Those two firms also have the largest difference between cash and debt, all above VND10 trillion.

The two businesses’ short-term debt, including long-term debts due to be paid, is quite large, at VND7 trillion and VND2.7 trillion respectively.

In Q1, HAGL borrowed VND1.95 trillion and paid principal loans worth some VND1.38 trillion.

HAGL’s cash supply was reduced by more than VND1.2 trillion compared with that in the beginning of 2012 due to the payment of nearly VND1.6 trillion for the procurement and construction of fixed assets.

On the other side, DPM is in the most comfortable situation, with VND9 billion in outstanding loans and VND5.6 trillion in cash available.

In addition, Vinamilk (VNM), REE, and KDC also have more cash than debt. VNM’s debt is around VND400 billion, but its cash is worth some 8 times more than that.