A number of state-owned firms in Vietnam faced losses of thousands of billions of VND in the first eight months of this year.
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| EVN posted claimed losses of VND11.7 trillion ($562.5 million) between January and August this year |
A report by the Party Committee for Central Businesses Bloc, a body that oversees state-run businesses, showed that Electricity of Vietnam Group (EVN) posted claimed losses of VND11.7 trillion ($562.5 million) between January and August this year. As of June 30 this year, EVN was VND31.565 trillion (USD1.5 billion) in the red.
Vietnam Shipbuilding Industry Group (Vinashin) has lost VND3.092 trillion (USD148.6 million); Vietnam National Petroleum Corporation (Petrolimex) VND1.2 trillion (USD57.6 million) and Vietnam National Shipping Lines (Vinalines) VND613 billion (USD29.4 million).
According to the report, most of these state-owned firms have a shortage of capital, which has led to delays in projects. In addition, higher operating costs are a major contributing factor.
It also indicated that during the eight-month period, agricultural and petroleum businesses saw the highest growth, while transport and construction firms fared the least well.
Among the firms that made profits were Vietnam Oil and Gas Group (PetroVietnam), Vietnam Rubber Group, Vietnam National Textile Garment Group (Vinatext) and Vietnam National Coffee Corporation (Vinacafe).
Low on capital, but keen on investment
Many state-owned companies are in dire need of capital, but have continued to invest in non-core areas with a lot of risk.
According to the report, 21 out of 31 companies and banks in the bloc have expanded into non-core activities.
Six of those poured more than VND1 trillion (USD48 million) each into their non-core businesses. Most of this money goes into banking and finance, insurance, securities and real estate projects.