A report on the operation, revenues and debts of state-owned enterprises in 2012 was just been submitted to the Prime Minister on January 16.
The construction sector was most bogged down with bad debts in 2012
Pham Viet Muon, Vice Chairman of the Government Office and the National Steering Committee for Enterprise Reform and Development said that in 2012, total revenues of state-owned enterprises was over VND1,600 trillion (USD77 billion), but pre-tax profits reached just VND127 trillion.
They contributed VND294 trillion to the state budget. The total fulfilled the target but was a 12% drop compared to 2011.
The big earners were Vietnam Oil and Gas Group (PVN), Vietnam Electricity Group (EVN), Vietnam National Petroleum Group (Petrolimex), Viettel Group and Vietnam Post and Telecommunication Group (VNPT).
Vietnam Airlines, Vietnam National Textile and Garment Group, Vietnam Southern Food Corporation and Vietnam Rubber Group also recorded large mark-ups.
Meanwhile, the revenue of some companies such as Vietnam Northern Food Corporation and Vietnam National Coal and Mineral Industries (Vinacomin) decreased in 2012. Despite Vinacomin’s fall, its revenue was still considered high.
However, the report also pointed out that the losses in 2012 reached VND2.2 trillion.
Some corporations posted losses two years in a row and as of 2012, 10 corporations posted losses of VND17.7 trillion.
After carrying out the enterprises restructuring plan for one year, equity in 2012 increased 1% and total assets increased 2%. The increases were said to be low because the value of equity in 2011 increased 9% compared to previous year.
Muon said some corporations were facing difficulties and had low equity ratios. A huge number of corporation finances depended mostly on loans, so they had low debt repayment capacity.
Liabilities by 2012 amounted to over VND1,300 trillion. The average debt to equity ratio was at 1.82, also higher than 2011.
Foreign debts accounted for 21.5% of total debts, standing at VND158 trillion. The construction sector was most bogged down with bad debts. Other groups with high foreign debts ratios were EVN, Vietnam Airlines and the Vietnam Expressway Corporation (VEC).
Muon also said state-owned groups continued to suffer from poor quality projects, low earning potential and overly complicated management structures.
