VietNamNet Bridge – Many state corporations have the debt-to-equity ratio of up to a dozen times. Overdue debts of the Vietnam Oil and Gas Group (PetroVietnam) or the Vietnam Maritime Corporation are up to trillions of VND.

The Vietnam Maritime Corporation is among the State groups with big overdue debts.

Before the closing date of the 6th session of the National Assembly, Finance Minister Dinh Tien Dung, authorized by Prime Minister Nguyen Tan Dung, sent a report on the financial situation and operations of state businesses in 2012 to deputies. The report covers the operation of 846 state-own enterprises (SOEs) which are 100 percent owned by the state and 127 state groups and corporations.

By the end of 2012, the debts of state corporations and groups amounted to $64.3 billion, up by 6 percent over 2011, accounting for 56 percent of the total capital.

The average debt-to-equity ratio in 2012 was 1.46 times. Up to 48 state corporations and groups had the debt-to-equity ratio of over three times. Particularly, it was up to over 53 times for the Vietnam Machinery Installation Group (LILAMA), 21 times for the Bach Dang Construction Corporation and over 18 times fro the Transport Construction Corporation 1.

Some groups and corporations have big overdue debts, such as PetroVietnam with VND2.17 trillion, the Vietnam Maritime Corporation with VND6.68 trillion and the Vietnam Coffee Corporation with VND153 billion.

There are four in the total of 127 groups and corporations, including the Army Petrol Corporation, Vietnam Shipping Lines Corporation (Vinalines), Construction Engineering Corporation and HAPROSIMEX Hanoi had negative equity.

The loans from commercial banks of 127 groups and corporations increased slightly by 2 percent compared to 2011. PetroVietnam, the Electricity of Vietnam (EVN), Vinalines are one of the biggest debtors.

State groups and corporations also owe more than VND315 trillion of foreign debts, of which ODA loans and government-guaranteed loans accounted for two-thirds.

According to the report, in 2012 fifteen groups and corporations incurred big losses, including Vinalines with VND4.562 trillion, VTC Multimedia Group with VND246 billion and Transport Construction Corporation with VND44 billion.

By the end of 2012, forty-one groups and corporations had the total losses of about VND29 trillion. The EVN, Army Petrol Corporation and Vinalines had the highest losses.

Regarding investment in non-core businesses of state groups and corporations in 2012, the report said that investment in securities, investment funds and insurance of the parent company fell in 2012, but investment in banks increased three percent compared to 2011,  with VND13.15 trillion. Investment in real estate was VND6.089 trillion, an increase of 20 percent over the previous year.

S. Tung