State-owned groups report losses of nearly $62 billion to the PM
State-owned groups report losses of nearly $62 billion to the PM
A report released at the meeting with the Prime Minister this morning, January 16 shows that the losses of state-owned groups and corporations in 2012 were significantly improved compared to 2011.
The annual meeting between the Prime Minister and state-owned groups and corporations, which are compared to the "steel fist" in the national economy, took place this morning in Hanoi.
As being reported by the Ministry of Planning and Investment, in 2012, the average rate of return on equity of state-owned groups and corporations reached only 14.84%, down by 4.16% compared with 2011. Of the 73 units, approximately 46.5% had the rate of return on equity of less than 10%. The group of corporations with the rate of over 20 percent accounts for only 23%.
A small number of highly profitable businesses such as the Saigon Tourism Corporation, Vietnam Vegetable Oil Corporation, Saigon New Port and Viettel Corporation had the return on equity rate of 36% to 63%. Many units had very low profit, such as the Vietnam Railway Corporation (0.85%), the Electricity Group of Vietnam (1.4%), the Cement Corporation (4.22%), the Southern Food Corporation (4.49%), Vietnam Airlines (4.55%), the Paper Corporation (5.84%), the Coffee Corporation (6.57%) and the Coal and Mineral Corporation (6.98%.)
With the above result, many groups and corporations did not achieve their production and targets and tax payment, including the cases of the Coffee Corporation or the Southern Food Corporation which achieved only about half of the annual plans. There are two corporations getting losses (not including Vinashin) – the Global Telecommunications Corporation and the Waterway Construction Corporation.
According to the report of the Steering Committee for Enterprise Renovation and Development, in 2012, the total pre-tax profit of state-owned corporations and groups is VND127,510 billion, down 5% compared with 2011. The total amount paid to the budget reached VND294,000 billion, down 12% from 2011.
The report also states that the losses incurred in 2012 of these businesses is VND2,253 billion. Ten businesses reported accumulated losses in the financial statements, totaling VND17,730 billion by the end of 2012. However, compared with the 2011 report, the losses of state-owned corporations was significantly improved. By the end of 2011, the total accumulated losses of 13 groups and corporations was up to VND48,988 billion, in which EVN contributed 78% when its accumulated losses was VND38,104 billion.
While production efficiency was low, the liabilities of these corporations is up to nearly VND1,335,000 billion (nearly $62 billion), equivalent to 1.82 times of the equity. This ratio is evaluated to be still in the safe range, but it is considered high and very high in some units.
In the total liabilities, the parent companies of state-owned groups and corporations owe foreign partners about VND158.900 trillion, an increase of 11% compared to 2011. Some corporations with large foreign debts include the Electricity of Vietnam, Vietnam Airlines and the Highway Development Corporation.
US$1 = VND21,000
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