VietNamNet Bridge – A general audit report shows a picture of the State-owned enterprises (SOEs) with many dark pieces, caused by losses worth hundreds of million of USD.

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The report was made by the State Auditor of Vietnam after reviewing financial statements and the activities related to the management and use of State capital and assets in 38 State-owned corporations in 2014.

Of the 38 State-owned corporations, 5 incurred losses, including the Vietnam National Shipping Lines Corporation (Vinalines), Corporation 15, Industrial Construction Corporation, Sugar Corporation II and Dak Lak Printing Company.

The losses at Vinalines are up to VND3,478 billion (over  $150 million). The remaining 33 corporations earned profit or preserved their capital.

The State Audit of Vietnam agency said many corporations did not properly manage debts resulted in bad debts. For example, it is hard for Mobifone to claim debts of VND312 billion ($15 million).

Other state-owned firms like the Corporation Construction, the National Power Transmission Corporation and the Northern Electricity Corporation face the risk of losing tens of million USD of bad debts.

Some state-owned companies invested in businesses with bad financial situation, which can be dissolved or go bankrupt anytime, such as Vinashin Ocean Shipping, East Sea Shipping, North Sea Shipping, PetroVietnam Shipping or Ha Long Cement.

Some State-owned corporations operated based on loans from credit institutions, resulting in a high liabilities ratio on equity. By the end of 2015, the government had to guarantee loans of more than $26 billion for State-owned businesses.

Na Son