Large state enterprises spread too thin by forays into other fields: Ministry

The restructuring of some giant State-owned companies into economic groups has been a success in that they have made consistent profits and played an important role in stabilizing prices, but they have also spread themselves too thin, the Government has said.

The Ministry of Industry and Trade, which reviewed the performance of PetroVietnam (PVN), Vietnam National Coal – Mineral Industries Group (Vinacomin), Electricity of Vietnam (EVN), and Vietnam National Textile and Garment Group (Vinatex) in the three years since their restructure, said they have entered businesses they are not familiar with.

Their foray into finance, banking, insurance, real estate, telecommunications, and other fields has affected their performance in their primary fields, it said.

PVN has invested nearly VND4 trillion (US$242 million) in various fields, including VND2 trillion (US$121 million) in just finance, Vinacomin more than VND1 trillion (US$60 million) in banking and stocks, EVN more than VND2 trillion in finance, stocks, and real estate, and Vinatex VND154 billion (US$9 million) in stocks, property, and banking.

By V.Lan – Translated by Thuy Doan

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