Groups, corporations show ineffective performance

Through data on financial condition and performance at state owned groups and corporations in 2014, The Ministry of Finance said that their operation effectiveness was not high.

The Government has reported to the National Assembly last year financial condition, production and trading results of businesses that the Government holds 100 percent chartered capital, has shares or makes capital contribution.

According to data at the end of 2014 fiscal year, the Government owns 100 percent chartered capital of 781 businesses including eight economic groups, 85 corporations excluding Vietnam Ship-building Corporation which is under restructuring as per a resolution by the Politburo and the Government.

By the end of last year, their total assets topped VND3,100 trillion (US$137.83 billion) comprising VND2,800 trillion from groups, corporations, parent companies and subsidiaries.

Total equity exceeded VND1,200 trillion (US$53.35 billion), up 7 percent over 2013. Pre-tax profit was down 1 percent to VND188 trillion (US$8.36 billion). Of these, groups got VND131 trillion, falling 2 percent, corporations earned VND40.81 trillion, raising 9 percent.

Financial investment in short terms by groups and corporations was VND286.29 trillion (US$12.73 billion), up 29 percent. Debt receivable was VND293.62 trillion (US$13.05 billion) including VND13.57 trillion doubtful debts, a year on year increase of 11 percent and 18.6 percent respectively.

The most doubtful debts came from Vietnam Oil and Gas Group with VND3.11 trillion, Vietnam Posts and Telecommunications Group with VND1.81 trillion, Vietnam Military Telecommunications Group with VND616 billion, Vietnam Cement Industry Corporation  VND613 billion, Vietnam National Coal - Mineral Industries Group VND608 billion, Southern Food Corporation VND544 billion, Northern Food Corporation VND504 billion, Vietnam Airlines VND391 billion and Mobifone Telecommunications Corporation VND344 billion.

Synthesized reports by groups and corporations indicated that their total debt due hit VND1,500 trillion (US$68.69 billion), increasing 8 percent against 2013. This includes VND553 trillion short term loans from commercial banks and credit institutions, up 1 percent.

The largest debtors namely were Vietnam Oil and Gas Group with VND174.43 trillion, Vietnam Electricity VND108.46 trillion and Vietnam National Coal - Mineral Industries Group with VND46.17 trillion.

Ten groups and corporations reported an accrued loss of VND4.9 trillion (US$218 million) and 19 posted an accumulated loss of VND25.45 trillion (US$1.13 billion). Ten parent companies showed an accumulated loss of VND2.89 trillion (US$128.49 million).

By Ha My – Translated by Hai Mien

Other news