SOE performance during the Covid-19 pandemic

Many state-owned enterprises (SOES) experienced a turbulent year in 2020. In the first half of 2021, many businesses escaped the crisis and gained impressive results.

However, there are still corporations strongly affected by the epidemic, such as Vietnam Airlines and Vietnam Railways Corporation.

PVN overcomes difficulties, banking sector earns big profits

SOE performance during the Covid-19 pandemic

In the first half of the year, Vietcombank's pre-tax profit reached VND 14,560 billion, up 36% over the same period last year, ranking first for profit.

Contrary to the "gloomy" picture of many enterprises, state-owned enterprises have achieved many impressive business results compared to 2020, especially the Vietnam Oil and Gas Group (PetroVietnam) and the banking sector.

According to a report of the Party Committee of the Central Business Bloc (including over 30 state-owned corporations), in the first half of 2021, total revenue of corporations in this group was estimated at VND717.48 trillion, up 4.43%; pre-tax profit at VND76.45 trillion, up 77.7%; and tax payment at VND114.53 trillion, up 3.21% year on year.

Corporations in the industrial production and finance and banking sectors, and Petrovietnam, had impressive business results. Textile and garment profits increased by 96%, and steel increased by 216%. Banks also earned high growth rates such as BIDV at 80%, Vietinbank 75%, Agribank 40%, and Vietcombank 36%.

In the first half of the year, Vietcombank's pre-tax profit reached VND 14,560 billion, up 36% over the same period last year, ranking first for profit.

Le Manh Hung, PetroVietnam General Director, said that the Covid-19 pandemic has narrowed the market for energy products and products of the oil and gas industry and affected the continuous operation of oil and gas projects at home and abroad.

In 2020, the phrase "the most difficult year in the history of the oil and gas industry" often appeared in PetroVietnam’s reports. There was a time when the world oil price fell to negative levels. However, in the first six months of the year, PetroVietnam "revived" strongly. The group's total revenue reached VND 299.3 trillion, exceeding 20% of the 6-month plan and 22% over the same period in 2020.

After a difficult year, Vietnam Textile and Garment Group (Vinatex) also broke a record in its 25 years of history, with pre-tax profit estimated at VND557.8 billion, up 95.6% year on year, reaching 79.7% of the yearly plan.

Despite facing many difficulties from the Covid-19 pandemic, state-owned enterprises still tried to come up with a plan to survive and stand firm. The report of the Ministry of Finance shows that revenue from the state-owned enterprise sector in the first six months reached 52.9% of the estimate, up 18.2%.

Transport sector at a loss

 
SOE performance during the Covid-19 pandemic

By June 30, 2021, the combined accumulated loss of Vietnam Airlines was more than VND19.8 trillion.

At a recent conference, Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines said that by June 30, 2021, the combined accumulated loss of Vietnam Airlines was more than VND19.8 trillion. In the most optimistic scenario, by the end of 2023-2024, international aviation will recover to the level of 2019. Before the Covid-19 epidemic, Vietnam Airlines operated about 550 flights a day.

The overdue debt of the airlines has reached VND6.24 trillion. The national flag air carrier has fallen into an extremely difficult situation and is on the verge of bankruptcy, according to the Ministry of Planning and Investment.

Explaining to its shareholders about business performance in 2021, Vietnam Airlines said the impact of the Covid-19 outbreak had caused total revenue and income from other sources of the holding company to fall by 65.3 percent compared with the same period last year (VND9.558 trillion). The income from services dropped sharply by 63.7 percent.

Vietnam Airlines’ domestic revenue dropped by 25.8 percent and international revenue by 97 percent, while revenue from chartered flights fell by 83.5 percent. As the drop in revenue was higher than the fall in operation costs, the post-tax profit fell by VND2.793 trillion.

Having no passengers, hundreds of aircraft have been idle. According to Planespotters, 127 out of 218 aircraft of four airlines in Vietnam have been suspended.

The Vietnam Railways Corporation (VNR) is in a similar situation. Dang Sy Manh, VNR General Director, said that since the Covid-19 pandemic broke out in early 2020, the railway industry has been experiencing an unprecedented difficult period. It is estimated that in the two years affected by the Covid-19 epidemic, VNR will lose more than VND2,200 billion.

Recently, VNR asked for the Committee for Management of State Capital at Enterprises’ VND 800 billion loan with preferential interest rates to maintain operations. According to VNR, this is the minimum to maintain operation at the lowest costs.

Luong Bang

Vietnam aims to have 7 world-class state-owned corporations

Vietnam aims to have 7 world-class state-owned corporations

The world is changing, with many great opportunities opening up for Vietnam.

Leaders grapple with core function of SOEs

Leaders grapple with core function of SOEs

Vietnam’s moves to reform and boost the performance of state-owned enterprises is just the latest in a long line of adjustments over the years, 

 
 

Other News

.
Three busy days of US Vice President Kamala Harris in Vietnam
Three busy days of US Vice President Kamala Harris in Vietnam
FEATUREicon  28/08/2021 

US Vice President Kamala Harris, the first US Vice President to visit Vietnam, had three busy days in Hanoi, with a packed schedule.

Teachers complain about problems in online teaching, ask for guidance
Teachers complain about problems in online teaching, ask for guidance
FEATUREicon  28/08/2021 

After one year of teaching online, Vietnamese schools and teachers have become familiar with the new teaching mode.

Hanoi Mayor orders closer inspection of high-risk zones
Hanoi Mayor orders closer inspection of high-risk zones
FEATUREicon  27/08/2021 

“All the people in isolated areas must be considered F1 cases (contacts of infected people) and they must be tested. Those who refuse testing must be taken away to concentrated quarantine,” said Hanoi Mayor Chu Ngoc Anh.

Fourth Covid-19 wave still raging, 80,000 businesses leave market
Fourth Covid-19 wave still raging, 80,000 businesses leave market
FEATUREicon  27/08/2021 

The Ministry of Planning and Investment's latest report found that production and business activities have been seriously affected by the Covid-19 pandemic.

Fighting the epidemic based on science
Fighting the epidemic based on science
FEATUREicon  27/08/2021 

At the national level, much more data in the health, economic and social fields is needed to make science-based rather than sentimental decisions for anti-epidemic and economic fronts.

Latest drastic moves in Vietnam’s vaccine diplomacy strategy
Latest drastic moves in Vietnam’s vaccine diplomacy strategy
FEATUREicon  26/08/2021 

Through vaccine diplomacy, Vietnam has so far received millions of vaccine doses from the support of the international community.

Vietnam-US relationship: comprehensive and strategic
Vietnam-US relationship: comprehensive and strategic
FEATUREicon  26/08/2021 

This is the time to review the relationship between Vietnam and the US, 

Hotels, private hospitals join fight against Covid-19
Hotels, private hospitals join fight against Covid-19
FEATUREicon  26/08/2021 

Many resources in society have been mobilized for testing, vaccination and medical quarantine, which has improved service quality and helped businesses earn revenue.

Teachers explain ’10.0 GPA phenomenon’ among primary school students
Teachers explain ’10.0 GPA phenomenon’ among primary school students
FEATUREicon  25/08/2021 

Two famous secondary schools for the gifted in Hanoi and HCM City have found it difficult to enroll students for the 2021-2022 academic year because there are too many students with a perfect 10.0 GPA (grade point average).

Directorate of Market Surveillance officials arrested for abuse of power
Directorate of Market Surveillance officials arrested for abuse of power
FEATUREicon  25/08/2021 

While many officials have been honored for their excellent fulfillment of official duties, many others have been prosecuted for their involvement in trade fraud.

Experts warn of high risks from real estate firms' corporate bond issuance
Experts warn of high risks from real estate firms' corporate bond issuance
FEATUREicon  25/08/2021 

Corporate bonds issued by real estate firms account for a high proportion of securities that mature in three years. Experts warn of high risks if the real estate market cannot recover by that time.

People lose everything as they fall into consumer-loan trap
People lose everything as they fall into consumer-loan trap
FEATUREicon  27/08/2021 

Some people who have not earned enough money because of Covid-19 and have had to borrow money have fallen into traps set by usurers.

State revenue from registration fees increases
State revenue from registration fees increases
FEATUREicon  24/08/2021 

The registration fees collected for the state budget increased from VND11,816 billion in 2012 to VND40,194 billion in 2019, up by 240% or VND28,378 billion.

Hanoi protects green zones from the core
Hanoi protects green zones from the core
FEATUREicon  25/08/2021 

Each residential area, commune and ward are considered the core level – the ‘cell’ that needs to be protected. Many places in Hanoi are effectively promoting the "green zone" model for safe residential areas.

More medical data needed to fight Covid-19
More medical data needed to fight Covid-19
FEATUREicon  24/08/2021 

Data from epidemiological studies using antibody tests to measure the proportion of the population who have acquired protective immunity will help to make more accurate assessments about the epidemic situation.

Street-front high-rise owners incur losses as renters leave
Street-front high-rise owners incur losses as renters leave
FEATUREicon  24/08/2021 

The long fourth Covid-19 outbreak and social distancing regulations have posed great challenges to the office leasing market.

Businesses seek interest rate cuts, banks worry about declining profits
Businesses seek interest rate cuts, banks worry about declining profits
FEATUREicon  24/08/2021 

Business associations and industries have repeatedly asked commercial banks to ease lending interest rates to share difficulties with them in the Covid-19 pandemic.

Six production options offered to companies amid pandemic
Six production options offered to companies amid pandemic
FEATUREicon  23/08/2021 

The HCM City Department of Industry and Trade has released guidance on safe production in the conditions of the fight against Covid-19 pandemic. There are six options:

Four-day campaign suceeds in stopping vegetable price chaos in HCM City
Four-day campaign suceeds in stopping vegetable price chaos in HCM City
FEATUREicon  21/08/2021 

A campaign deployed within four days helped rescue the vegetable distribution network in HCM City and stop price fluctuations during social distancing.

Discarded fruit peels recycled into valuable products
Discarded fruit peels recycled into valuable products
FEATUREicon  27/08/2021 

Many types of fruit peels, considered such as cocoa and shrimp shells and rice husks, can be processed into useful products, thus increasing product value, regenerating resources, and protecting the environment.

 
 
 
Leave your comment on an article

OR QUICK LOGIN