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State-invested enterprises: VND1.7 quadrillion in capital, tens of trillions of VND in losses

The capital the State has invested in 807 enterprises totals VND1.7 quadrillion. Pre-tax profit is VND162 trillion, and losses are up to tens of trillions of dong.



The Government has submitted to the National Assembly a report on the investment, management and use of state capital in enterprises in 2020.

The report showed the financial situation and the production and business performance of 807 enterprises, including 646 SOEs and 161 enterprises with State’s capital contributions.

These enterprises had total assets of VND3.6 million quadrillion, an increase of one percent over 2019. The stockholder equity was VND1.7 quadrillion, up by 1 percent.

The total capital the State invests in 807 enterprises was VND1,597,399 billion, an increase of 2 percent compared with 2019, including VND1.4 quadrillion in 100 percent state owned enterprises and VND151 trillion in others.

The pre-tax profit of the enterprises was VND162.904 trillion, falling by 22 percent compared with 2019. Of this, the profit of economic groups and general corporations totals VND140.522 trillion, down by 25 percent, and accounting for 86 percent of all enterprises’ total pre-tax profit.

Meanwhile, 119 out of 807 enterprises (15 percent) incurred losses, totaling VND15.74 trillion, and 169 enterprises (21 percent) still had accumulated losses, totaling VND33.75 trillion.

Revenue drops, bad debt high

The report showed that the total assets of 73 enterprises where the State holds 100 percent of charter capital is VND2.7 quadrillion, up by 1 percent.

In 2020, most SOEs were hit by the Covid-19 pandemic and their revenue was equal to that of 2019 or lower.

Some holding companies saw revenue decreasing by more than 20 percent, namely Vietnam Air Traffic Management Corporation (VATM) (56 percent), Vinacafe (53 percent), Hanoitourism (46 percent), Saigontourist (45 percent) and Vietnam Railways (33 percent).

Many enterprises reported high level of accounts receivable with total irrecoverable debts of VND22 trillion, increasing by 26 percent and accounting for 7 percent of total accounts receivable.

These included PetroVietnam (VND11.248 trillion), UDIC (VND603 billion), Vinachem (VND498 billion) and Vinacafe (VND428 billion).

Some holding companies have a high ratio of accounts receivable to total assets (over 50 percent), including Lung Lo Construction (VND1.365 trillion, 66 percent of total assets), Thai Son Corporation (VND2.25 trillion, 63 percent), Vinachem (VND9.989 trillion, 57 percent)

The financial reports of SOEs showed that 11 economic groups and general corporations still had accumulated losses worth VND11.4 trillion, and 7 holding companies VND6 trillion.

Thirty out of 187 enterprises (16 percent) reported an accrual loss of VND12.003 trillion, increasing by 25 percent.

Thirty five out of 187 enterprises (19 percent) reported a total accumulated loss of VND17.739 trillion. Three holding companies had an accumulated loss of VND9.625 trillion in total. 

Luong Bang

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