Headquarters of the Vietnam Cement Industry Corporation (VICEM) in Hà Nội. Last year was a challenging year for the cement industry. — Photo vicem.vn
HANOI: In 2023, a total of 134 out of 671 state-owned enterprises had reported cumulative losses amounting to 115.3 trillion dong.
The other 72, accounting for 11% of the total state-owned enterprises, reported incurred losses totalling 33.7 trillion dong.
Total pre-tax profits reported from the state-owned enterprises were 211.2 trillion dong, down 13% from 2022.
Those were the major points of a report submitted by the government to the National Assembly, regarding the losses and profits of state-owned enterprises and enterprises with state capital for last year.
State-owned enterprises are those in which the state holds 100% or more than 50% of its charter capital.
Those who posted profits included the Vietnam Oil and Gas Group – 56 trillion dong pre-tax, the Vietnam National Petroleum Group – 3.08 trillion dong post-tax, the Vietnam Maritime Corp – 1.7 trillion dong post-tax and the Saigon Newport Corp – 5.07 trillion dong in total return.
Of those that reported losses, the Vietnam Electricity Group (EVN) registered losses of 26.77 trillion dong.
This is an increase of 6.03 trillion dong compared to 2022.
The government explained that during the first half of 2023, EVN had to mobilise high-cost electricity sources, while the prices of various fuels for electricity production remained high, which led to increased electricity generation costs.
Additionally, EVN is subject to state price regulation, meaning retail electricity prices do not sufficiently cover costs.
In the transportation sector, the Vietnam Airlines Corp incurred losses of nearly 4.8 trillion dong.
The Vietnam Cement Industry Corp reported losses of over one trillion dong, primarily from its six subsidiaries (out of 10) and two joint-venture companies (out of three).
Most of these companies were profitable in 2022, with only the Ha Long Cement Joint Stock Co reporting losses.
The government explained that 2023 was a challenging year for the cement industry, with sales and revenues dropping despite price reductions.
In addition, the report also showed 93 out of 813 – or 11% – enterprises with state capital had incurred losses last year, amounting to a total of nearly 33.8 trillion dong.
A total of 169 others – or 21% – had cumulative losses totalling nearly 116.7 trillion dong.
According to the government’s assessment, despite their crucial role in the economy as leaders and key players, some state-owned groups and corporations have not clearly demonstrated their abilities to lead and inspire others in their sectors.
Furthermore, their contributions to enhancing the competitiveness of the economy and Vietnamese enterprises remain weak and the quality of their operations has not been commensurate with the resources they hold. — Viet Nam News/ANN
